Chau's & Sons Pty Ltd t/as Holiday Air Conditioning and Refrigeration Qld v Karam

The matter involved an action brought by Mr Karam against Chau's & Sons Pty Ltd t/as Holiday Air Conditioning and Refrigeration Qld. The dispute centred on the quality of workmanship performed by the counter-respondent in the supply and installation of an air conditioning unit, under an oral contract. The primary legal issues were whether the performance of the works was regulated by the Queensland Building and Construction Commission Act 1991 (Qld) and whether the limitation period for initiating the proceedings had expired, given that the works were performed over six years prior to the filing of the application.

The Court found that the relationship between Mr Karam and Chau’s fell within the special categories of cases in which a duty of care is owed, based on the assumption of responsibility by Chau’s and known reliance by Mr Karam. The Court held that Chau’s owed a duty to perform the works with reasonable care and skill and free from defects. The Court found that Chau’s had breached this duty by not completing the installation properly, resulting in the air conditioning system malfunctioning. Despite the limitation period issue, the Court proceeded to consider the merits of the case. Ultimately, the Court found in favour of Mr Karam, awarding him damages for the breach of duty by Chau’s.

The Court dismissed the proceedings due to the limitation period not being extended, and no grounds for extension being asserted in the application. The Court concluded that the action was barred by the limitation period.