Baque v River Gum Homes Pty Ltd

Kenneth Charles Baque (the Appellant) has appealed against a decision made by the Queensland Civil and Administrative Tribunal (QCAT) that he should pay River Gum Homes Pty Ltd (the Respondent) for the supply and installation of a transportable home. The contract for the work was originally entered into between the Respondent and Mrs Avril Baque, who was the owner of the land on which the home was to be installed. After the contract was signed, Mr Baque informed the Respondent that the land had been transferred to him and he was to be the owner. The Respondent drafted a new contract with the same details but naming Mr Baque as the owner and contracting party. Mr Baque signed the new contract but the Respondent did not sign it until February 2011, well after the work had been completed. Mrs Baque became bankrupt and has not participated in these proceedings.

The primary issue for determination was whether Mr Baque was liable for the cost of the home. This question was based on whether the second contract signed by Mr Baque was enforceable because it had not been signed by the Respondent until after the work had been completed. The Appellant also argued that the Tribunal did not have jurisdiction to order payment of a quantum meruit and that he was denied procedural fairness on the question of costs.

The Tribunal allowed the appeal in part. They found that the second contract signed by Mr Baque was enforceable because the signature of the Respondent was not required until one party sought to enforce the contract. The Tribunal also found that it had jurisdiction to order payment of a quantum meruit and that the Appellant had been denied procedural fairness in the making of the order for costs. The appeal was allowed in part, the costs order was vacated and the parties were invited to make written submissions on the issue of costs and interest.

Leave to appeal is granted. The appeal is allowed in part. Order 2 of the orders made on 29 November 2011 in BD191-09 is set aside. The parties may file in the appeal and serve on the other party any submissions on costs and interest in BD191-09 and the appeal by 28 February 2013. The application for costs and interest will be determined on the papers without the need for an oral hearing after 28 February 2013.