Adbs Pty Ltd v Webster

Case [2021] QCAT 249


QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

ADBS Pty Ltd v Webster [2021] QCAT 249

PARTIES: ADBS PTY LTD

(applicant)

v

MARK ANTHONY WEBSTER

(respondent)

APPLICATION NO:

BDL259-20

MATTER TYPE:

Building matters

DELIVERED ON:

23 July 2021

HEARING DATE:

On the papers

HEARD AT:

Brisbane

DECISION OF:

Senior Member Brown

ORDER:

1.       Mark Anthony Webster is to pay to ADBS Pty Ltd the amount of ONE HUNDRED DOLLARS ($100.00) within 28 days of this decision.

2.       Mark Anthony Webster is to pay to ADBS Pty Ltd costs fixed in the amount of THREE HUNDRED AND FIFTY TWO DOLLARS ($352.00) within 28 days of this decision.

CATCHWORDS:

DAMAGES – ASSESSMENT OF DAMAGES IN ACTIONS FOR BREACH OF CONTRACT – PROOF AND EVIDENCE – where the applicant hired the respondent to fit-out his shop – where the applicant made progress payments – where the applicant and respondent varied their contract on numerous occasions – where the respondent ultimately ceased work on the site – where the works were allegedly incomplete – where the applicant did not provide sufficient evidence of the incompleteness of the works or the cost to remedy any defects – whether the applicant should be compensated for breach of contract

Bellgrove v Eldridge (1954) 90 CLR 613

BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266
McDowall v Reynolds [2004] QCA 245
Robinson v Harman (1848) 1 Ex 850
Simply Irresistible Pty Ltd v Couper [2010] VSC 601
Ventura v Svirac [1961] WAR 63

Queensland Building and Construction Commission Act 1991 (Qld), s 77

Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 48

APPEARANCES & REPRESENTATION:

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

REASONS FOR DECISION

  1. ADBS engaged Mr Webster to undertake building works at commercial premises. ADBS says that the works are defective and claims damages for the cost of rectifying the defects. Mr Webster has failed to file a response or otherwise comply with tribunal directions, including failing to appear at a directions hearing.

  2. I am satisfied as to the following and make findings accordingly:

    (a)ADBS is a building owner;

    (b)Mr Webster is a building contractor;

    (c)The parties entered into an agreement for the performance by Mr Webster of reviewable commercial work;

    (d)Mr Webster undertook reviewable commercial work;

    (e)ADBS paid to Mr Webster $24,529.00;

    (f)The dispute between the parties is a minor commercial building dispute;

    (g)The tribunal has jurisdiction to decide the dispute;

    (h)Prior to commencing the proceedings, ADBS complied with the requirements of s 77(2) of the Queensland Building and Construction Commission Act 1991 (Qld);

    (i)Service of the proceedings has been effected upon Mr Webster;

    (j)Mr Webster has, without reasonable excuse, failed to comply with tribunal directions;[1]

    (k)The failure by Mr Webster to comply with tribunal directions is unnecessarily disadvantaging ADBS. ADBS is entitled to progress the proceedings to final resolution;[2]

    (l)ADBS is entitled to a final decision in the proceedings.[3]

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Details
AGLC
Adbs Pty Ltd v Webster [2021] QCAT 249
Case
[2021] QCAT 249
Decision Date

CaseChat Overview and Summary

Adbs Pty Ltd sued Webster over a breach of contract, which was heard in the Victorian Civil and Administrative Tribunal (VCAT). ADBS claimed that Webster repudiated the contract, allowing ADBS to terminate it, and sought damages. The dispute centred on whether Webster had indeed repudiated the agreement and whether ADBS could claim damages despite not proving actual financial loss.

The court had to determine if Webster had repudiated the agreement, allowing ADBS to terminate the contract, and whether ADBS could claim nominal damages even without proving actual financial loss. The central issue was whether the repudiation by Webster justified ADBS's termination of the contract and if ADBS could claim nominal damages in such circumstances.

The court found that Webster had repudiated the agreement, which entitled ADBS to terminate the contract. However, ADBS had failed to establish a loss resulting from Webster's breach. Nonetheless, the court held that ADBS was entitled to nominal damages because the breach had been established. The award of nominal damages serves to vindicate the legal right and allows for the awarding of costs to the successful party. The court concluded that it was more probable than not that the cost of rectification would exceed the balance payable by ADBS to Webster. Therefore, the court awarded ADBS nominal damages of $100.00, along with the recovery of filing fees and ordered Webster to pay costs amounting to $352.00.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

I referred earlier in these reasons to tribunal directions requiring ADBS to file a statement of evidence. Had ADBS complied with the directions its attention would have been drawn to the very deficiencies in the evidence to which I have alluded and this unhappy outcome (for ADBS) might have been avoided or at the very least mitigated. Conclusion I have found that Mr Webster repudiated the agreement entitling ADBS to terminate the contract. I have found that ADBS lawfully terminated the contract. ADBS has failed however to establish loss as a result of Mr Webster’s breach. Notwithstanding this, ADBS is entitled to recover nominal damages. The party suing on a breach of contract is entitled to nominal damages where it establishes breach, even where it has not expressly sought such an order. Where breach of contract is established, an order for nominal damages must follow even though the claimant has not proved loss.[8] [8]Simply Irresistible Pty Ltd v Couper [2010] VSC 601. An award of nominal damages serves two purposes. Firstly, it is a means of vindicating a legal right. Secondly, it enables costs of the proceedings to be awarded in favour of a successful claimant who has not recovered damages.[9][9]McDowall v Reynolds [2004] QCA 245. Despite the absence of evidence, I am prepared to accept it is more probable than not that the cost of rectification and/or completion of the works undertaken by Mr Webster would likely exceed the balance payable by ADBS to Mr Webster under the contract. Accordingly, I award nominal damages of $100.00. There will be a final decision for ADBS against Mr Webster for this amount. It is appropriate that ADBS also recover the filing fees on the originating application. Mr Webster is ordered to pay costs fixed in the amount of $352.00.

Ratio Decidendi

Legal Principle Established

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