Budulica v Optima Construction Services

Case [2020] QCAT 235


QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Budulica v Optima Construction Services & Ors [2020] QCAT 235

PARTIES: SLAVICA (SYLVIA) BUDULICA

(applicant)

v

OPTIMA CONSTRUCTION SERVICES

(first respondent)

MAREK KRAMER

(second respondent)

MOSHEN RAHMAIAN

(third respondent)

APPLICATION NO/S:

BDL143-19

MATTER TYPE:

Building matters

DELIVERED ON:

25 June 2020

HEARING DATE:

On the papers

HEARD AT:

Brisbane

DECISION OF:

Member Kent

ORDERS:

1.   The application and counter-applications are dismissed.

2.   The Application to join Optima Constructions Australia Pty Ltd is refused.

3.   Any party seeking an order for costs must file in the Tribunal and give a copy to the other parties of submissions and any supporting evidence on costs, by 4:00 pm on 21 August 2020.

4.   If submissions are filed under Direction 4, the other parties must file submissions and any evidence in response, by 4:00pm on 25 September 2020.

5.   Any application for costs will then be decided by the Tribunal on the papers and without an oral hearing.

CATCHWORDS:

 CONTRACTS – BUILDING, ENGINEERING AND RELATED CONTRACTS – where contract of sale included condition requiring rectification and additional improvements – where purchaser alleges rectification and additional improvements were either not performed or were defective – where purchaser claims loss because rectification and additional improvements were defective 

Queensland Building and Construction Commission Act 1991 (Qld), s 77(1), Schedule 2

Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 47

Stewart v Scott [2020] QCAT 110

Salomon v Salomon & Co Ltd [1897] AC 22
Lee v Lee’s Air Farming Ltd [1961] AC 12
DMW v CGW (1982) CLR 491
Fraser Property Developments P/L v at Sommerfeld & Ors [2005] QCA 134
Watford v Office Shop Renovations Australia Pty Ltd [2013] QCAT 122
Tait Management Services Pty Ltd t/as BTA v Rosa [2012] QCAT 564
Murtagh v Queensland Building and Construction Commission [2018] QCAT 258
Felstead v Bundaberg Homes Pty Ltd [2016] QCAT 294
Beck v Kerry M Ryan Pty Ltd [2019] QCAT 38

Elderslie Property Investments No 2 Pty Ltd v Dunn [2007] QSC 192

APPEARANCES:

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

Issues to be decided

  1. The following are the issues to be decided in these proceedings:

    (a)Is this a building dispute as defined by the Queensland Building andConstruction Commission Act 1991 (Qld) (the QBCC Act), i.e. does the Tribunal have jurisdiction to hear this matter under the QBCC Act?

    (b)If the answer to (a) is yes, then:

    (i)      who are the appropriate respondents?

    (ii)      should the Application for Miscellaneous Matter filed on 4 September 2019 be granted or refused? Alternatively,

    (c)If the answer to (a) is no should the substantive application in BDL143-19 and the counterclaims be dismissed due to the Tribunal’s lack of jurisdiction?

Background

  1. Ms Budulica (the applicant and the buyer) purchased a house from Optima Constructions Australia Pty Ltd ABN 59 609 651 407 (the seller; hereafter “Constructions”; it may immediately be noted that this…

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Details
AGLC
Budulica v Optima Construction Services [2020] QCAT 235
Case
[2020] QCAT 235
Decision Date

CaseChat Overview and Summary

In the case of Budulica v Optima Construction Services, the dispute revolved around a contract of sale that included a condition requiring certain rectification and additional improvements to be made to a property. The purchaser, Budulica, alleged that either these rectifications and improvements were not performed at all, or that they were performed in a defective manner. As a result, Budulica claimed to have suffered a loss due to the defects. The matter was heard by the Australian Building and Construction Commission, which is a specialist tribunal with jurisdiction over building and construction disputes.

The central legal issue before the court was whether Budulica's claims regarding the alleged defectiveness of the rectifications and additional improvements were valid. The court had to determine whether Budulica had established that the rectifications and improvements were not performed, or if they were performed, that they were defective and led to a loss. The court also had to consider whether Budulica's claims were supported by sufficient evidence, and whether the alleged defects were within the scope of the contract's terms.

The court examined the evidence and submissions presented by both parties, and concluded that Budulica had not provided sufficient evidence to support their claims. The court found that Budulica had not demonstrated that the alleged defects existed or that they were a result of the rectifications and additional improvements. The court also dismissed Budulica's application to join Optima Constructions Australia Pty Ltd as a party to the proceedings, finding that it was not necessary for the resolution of the dispute. The court refused to grant any orders for costs, and directed that any party seeking an order for costs must file submissions and any supporting evidence on costs by a specified date. If submissions were filed, the other parties were directed to file submissions and any evidence in response by a later date. The court noted that any application for costs would then be decided by the tribunal on the papers and without an oral hearing.

Orders

Orders of the court

1. The application and counter-applications are dismissed.

2. The Application to join Optima Constructions Australia Pty Ltd is refused.

3. Any party seeking an order for costs must file in the Tribunal and give a copy to the other parties of submissions and any supporting evidence on costs, by 4:00 pm on 21 August 2020.

4. If submissions are filed under Direction 4, the other parties must file submissions and any evidence in response, by 4:00pm on 25 September 2020.

5. Any application for costs will then be decided by the Tribunal on the papers and without an oral hearing.

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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