A L Builders Pty Ltd v. Fatseas (No. 2)

This case involves A L Builders Pty Ltd, a building contractor, and the respondent, Fatseas, a homeowner. The dispute originated from a building contract where the contractor was engaged to construct a home for the homeowner. The primary issue was the quality of the workmanship and the costs associated with rectifying defects. The case was heard and decided by the Queensland Civil and Administrative Tribunal (QCAT) and subsequently appealed to the Supreme Court of Queensland.

The legal issues before the court encompassed the principles of awarding costs in building disputes, particularly whether the costs should follow the usual rule where each party bears their own costs or if the general rule that costs follow the event should apply. The tribunal had initially awarded costs against the contractor, but the contractor appealed this decision, arguing that the tribunal had departed from the usual rule without sufficient justification. The appeal centred on whether the tribunal had the authority to award costs outside the usual rule and if the award was proportionate and appropriate.

The court held that the tribunal was not constrained by the usual rule in awarding costs and had the discretion to apply the general rule that costs follow the event. The tribunal’s decision to award costs to the homeowner was affirmed because it was found to be proportionate and appropriate. The court emphasized the importance of ensuring that the costs awarded reflected the outcome of the dispute and did not unduly burden the losing party. The tribunal’s exercise of discretion in this matter was upheld as reasonable and justified.

The final orders of the court required the contractor to pay the homeowner's costs of the appeal and a further application for miscellaneous matters. The costs were to be agreed upon by the parties or assessed by appointed costs assessors, with payment to be made within 28 days of the delivery of the assessment to the contractor. The assessment was to be conducted in accordance with the Supreme Court of Queensland Scale of Costs.