Auret v Queensland Building Services Authority

In this matter, Mr Auret sought review of the decision of the Queensland Building Services Authority (QBSA) to decline his claim for non-completion of works under the statutory insurance scheme. The decision of the QBSA was based on the effect of a Deed of Settlement that had been entered into by Mr Auret and the builder, Deck Design and Build Constructions Pty Ltd. The Tribunal was required to decide the effect of the Deed of Settlement, whether there was a proper termination of the contract, and whether the Authority was estopped from denying cover under the insurance scheme.

The Tribunal found that the Deed of Settlement was clear in its meaning and was intended to bring an end to all matters between the homeowner and builder. The Deed was to be given its plain meaning, and the parties were bound by it unless there was evidence of vitiating circumstances. The Tribunal found that the Deed was effective to release the builder and the Authority from liability for non-completed works. The Tribunal also found that the Deed did not establish proper termination of the contract as required by the insurance policy. The Tribunal further found that the Authority was not estopped from refusing payment under the policy, as the homeowner had not come with clean hands in equity and had not acted in good faith in entering into the Deed of Settlement without full disclosure of the existing QBSA claim.

The Tribunal confirmed the decision of the Authority to decline the claim by Mr Auret and Ms Armstrong for non-completion of premises at 29 Fry Street, Holland Park. The Tribunal allowed either party to make submissions as to costs if they wished, within 7 days of receipt of these reasons. If no application was made within 7 days, the matter would be concluded.