A L Builders Pty Ltd v Fatseas

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CITATION: A L Builders Pty Ltd v Fatseas [2015] QCAT 273
PARTIES: A L Builders Pty Ltd
(Applicant)
v
Nicholas Fatseas and Tricia Fatseas
(Respondents)
APPLICATION NUMBER: BDL302-12
MATTER TYPE: Building matters
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: Member King-Scott
DELIVERED ON: 10 July 2015
DELIVERED AT: Brisbane
ORDERS MADE:

The Applicant pay to the Respondents as agreed, or failing agreement within 28 days hereof, as assessed by Queensland Independent Costs Services, Costs Assessors:

[1]   The Respondents’ costs of the application on a standard basis, by reference to the District Court of Queensland Scale of Costs;

[2]   The Respondents’ costs of the Magistrates Court of Queensland at Brisbane proceeding being M10308/11 reserved to the Tribunal by order of the Magistrates Court of Queensland on 25 September 2012 on a standard basis on the Magistrates Court Scale of Costs;

[3]   The Respondents’ costs reserved by order of the Tribunal in proceedings made 21 March 2014 and 24 March 2014 on a standard basis by reference to the District Court of Queensland Scale of Costs;

[4]   Half of the Respondents’ costs of the counterclaim on a standard basis by reference to the District Court of Queensland Scale of Costs;

The assessed amounts to be paid within 28 days of delivery of such assessments.

CATCHWORDS: BUILDING MATTERS - costs – building dispute – award of costs outside the usual rule of the Tribunal that each party bear their own costs – success on some issues ­– exercise of discretion

APPEARANCES and REPRESENTATION (if any):

This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act).

REASONS FOR DECISION

  1. The decision in this matter was delivered on 8 May 2015.  I dismissed the Applicant/Builder’s application for $384,494.85. I allowed only $191,559.86 of the Respondent/Owners’ counterclaim of $1,697,630.80.[1] I directed the parties file their submissions as to costs.  Those submissions have been filed within the time limits directed.

    [1]There was also an unquantified claim for damages for distress and inconvenience that was disallowed.

  2. The Applicant/Builder [for convenience I will hereinafter refer to the parties as Owner and Builder] failed in its application which was for moneys due under the contract, essentially on the basis of accounting errors.  It was apparent on the material that the Owners had paid all of the amounts outstanding and more.

  3. A significant amount of time was spent on the issue of whether the contract between the parties was a fixed price contract as alleged by the Owners, or a costs plus contract as alleged by the Builder.  On this issue, I found for the Builder, but it was in a sense a pyrrhic victory, as it recovered nothing. 

  4. On the other hand, a substantial part of the counterclaim which I disallowed may have been recoverable had I found it was a fixed price contract. 

  5. It was agreed by all parties that the matter was a complex and difficult building dispute.  It certainly…

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Details
Case
[2015] QCAT 273
Decision Date

CaseChat Overview and Summary

A L Builders Pty Ltd, the applicant, sought review of a decision by the Queensland Civil and Administrative Tribunal (QCAT) in a dispute regarding the quality of building work. Fatseas, the respondent, was the builder who had performed the work in question. The dispute primarily revolved around the costs associated with the QCAT proceedings, with A L Builders arguing that the decision to award costs outside the usual rule that each party bear their own costs was an error of law. The case was heard in the Queensland Court of Appeal.

The primary legal issue was whether the QCAT had the discretion to award costs outside the usual rule, and if so, whether it exercised that discretion appropriately. The court had to consider the circumstances under which costs could be awarded beyond the standard rule of each party bearing their own costs. A secondary issue was the correctness of the QCAT's decision to apportion the costs of the counterclaim, which was only partially successful.

The court found that QCAT indeed had the discretion to award costs outside the usual rule when the circumstances warranted it. In this case, the court considered that the respondent had succeeded on some issues, and the award of costs was proportionate to the nature and extent of those successes. The court upheld the QCAT’s exercise of discretion, finding that it was not an error of law. The court also found that the apportionment of the counterclaim costs was appropriate given the partial success of the respondent. The appeal was dismissed, and the original costs order was affirmed.

The court ordered that A L Builders pay the respondents' costs in accordance with the detailed schedule outlined in the orders, which included costs from various stages of the proceedings. These costs were to be paid within 28 days of the assessment by Queensland Independent Costs Services, Costs Assessors.

Orders

Orders of the court

The Applicant pay to the Respondents as agreed, or failing agreement within 28 days hereof, as assessed by Queensland Independent Costs Services, Costs Assessors:

[1] The Respondents’ costs of the application on a standard basis, by reference to the District Court of Queensland Scale of Costs;

[2] The Respondents’ costs of the Magistrates Court of Queensland at Brisbane proceeding being M10308/11 reserved to the Tribunal by order of the Magistrates Court of Queensland on 25 September 2012 on a standard basis on the Magistrates Court Scale of Costs;

[3] The Respondents’ costs reserved by order of the Tribunal in proceedings made 21 March 2014 and 24 March 2014 on a standard basis by reference to the District Court of Queensland Scale of Costs;

[4] Half of the Respondents’ costs of the counterclaim on a standard basis by reference to the District Court of Queensland Scale of Costs;

The assessed amounts to be paid within 28 days of delivery of such assessments.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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