First Australian decision on liability for ACP Cladding – what does it mean for insurers?
/Owners Corporation No.1 PS613436T & Ors v LU Simon Builders Pty Ltd & Ors [2019] VCAT 286
Early morning on 25 November 2014, a resident of the Lacrosse Apartment building, in Melbourne, extinguished a cigarette in a makeshift ashtray sitting on a timber table on his balcony. A small fire started in the plastic ashtray, spreading to the table and then to the external cladding of the building. The cladding was made of Aluminium Composite Panels (ACP). These panels had a core containing highly flammable polyethylene, which was not compliant with the Building Code of Australia (BCA). The fire spread quickly up the side of the building, racing up thirteen floors in roughly fifteen minutes and causing extensive damage.
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