Burman v Queensland Building and Construction Commission

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CITATION: Burman v Queensland Building and Construction Commission [2015] QCAT 315
PARTIES: Jason Burman
(Applicant)
v
Queensland Building and Construction Commission
(Respondent)
APPLICATION NUMBER: OCR136-14
MATTER TYPE: Occupational regulation matters
HEARING DATE: 15 April 2015
HEARD AT: Brisbane
DECISION OF: Member Paratz
DELIVERED ON: 4 August 2015
DELIVERED AT: Brisbane
ORDERS MADE: 1. The decision of the QBCC made on 2 June 2014 not to categorise Jason Burman as a permitted individual is confirmed.
CATCHWORDS:

BUILDER – PERMITTED INDIVIDUAL – Whether a plumber took all reasonable steps to avoid the company being put into receivership – where the plumber had a serious gambling addiction – whether reasonable is to be applied as an external standard or is to be assessed on an individual basis 

Queensland Building and Construction Commission Act 1991 (Qld), s 3, s 56AC, s 56AD

Hyde v QBSA [2003] QBT 30
Muir v Franklins [2001] QCA 173
Queensland Building Services Authority v Meredith [2013] QCATA 152
Queensland Building and Construction Commission v Meredith [2014] QCA 62
Younan v Queensland Building Services Authority [2010] QDC 158

APPEARANCES:

APPLICANT: Ms Sweetapple of Counsel (Direct Brief)
RESPONDENT: Ms Taylor (In-House Solicitor)

REASONS FOR DECISION

  1. Mr Burman held a licence as a plumber. He was a Director of Namreh Pty Limited (“the company”). Liquidators were appointed to the company on 6 December 2013.

  2. The Queensland Building and Construction Commission (“QBCC”) advised Mr Burman on 2 May 2014 that it considered him to be an excluded individual pursuant to s 56AC of the Queensland Building and Construction Commission Act 1991 (Qld) (‘the Act’).

  3. Mr Burman applied to the QBCC on 30 May 2014 to be categorised as a permitted individual pursuant to s 56AD(1) of the Act. The QBCC made a decision on 2 June 2014 refusing to categorise him as a permitted individual.

  4. Mr Burman filed an Application to Review the decision of the QBCC in the Tribunal on 27 June 2014. The application was heard by an oral hearing on 15 April 2015. This is the decision on the Application.

The situation

  1. The facts in this matter, and the circumstances leading up to the liquidation are not in dispute.

  2. The company was placed into liquidation by the Australian Taxation Office (‘ATO’) due to an unpaid tax liability.

  3. A tax liability of $63,047.00 was notified to Mr Burman in August 2009. He negotiated a payment arrangement with the ATO, and started paying $300 per week towards the debt. Despite those payments, and including interest charges, the debt to the ATO increased to $92,910.00 by December 2010. Mr Burman borrowed an extra $90,000.00 from a bank in 2011 by taking out a second mortgage on his house, and paid $50,000.00 to the ATO and $40,000.00 to other creditors. However, he was unable to discharge the tax obligations, or reach further arrangements with the ATO by December 2013, and it placed the company into liquidation.

  4. Mr Burman readily admits the tax liability, and concedes that his management of the company in the…

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Details
Case
[2015] QCAT 315
Decision Date

CaseChat Overview and Summary

The case of Burman v Queensland Building and Construction Commission pertains to the eligibility of Jason Burman, a licensed plumber, to be recognised as a permitted individual by the Queensland Building and Construction Commission (QBCC). The QBCC had declined to categorise Burman as a permitted individual due to concerns about his personal financial situation and a gambling addiction, which potentially placed his company at risk of receivership. Burman contested this decision, arguing that he had taken all reasonable steps to avoid the company being put into receivership.

The primary legal issue in the case was whether the term "reasonable steps" should be interpreted as an objective external standard or subjectively, based on the individual's personal circumstances. The court had to determine whether Burman, given his specific situation and the knowledge of his gambling addiction, had indeed taken all reasonable steps to safeguard his company's financial stability. The court also needed to assess the QBCC's decision-making process and whether it was justified in denying Burman the status of a permitted individual.

In its decision, the court upheld the QBCC's ruling, affirming that the term "reasonable steps" should be assessed from an external perspective, considering what a prudent person in Burman's position would have done. The court found that Burman had not taken sufficient steps to ensure that his company was not at risk of financial instability due to his gambling addiction. Consequently, the QBCC's decision to not categorise Burman as a permitted individual was deemed appropriate and reasonable. The court confirmed the QBCC's decision, finding no grounds for Burman's appeal.

Orders

Orders of the court

1. The decision of the QBCC made on 2 June 2014 not to categorise Jason Burman as a permitted individual is confirmed.

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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