Chen v Homecorp Constructions Pty Ltd - [2025] QCAT 50

QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL

CITATION:

Chen v Homecorp Constructions Pty Ltd [2025] QCAT 50

PARTIES:

I-CHUEN CHEN

(applicant)

v

HOMECORP CONSTRUCTIONS PTY LTD

(respondent)

APPLICATION NO:

BDL287-23

MATTER TYPE:

Building matters

DELIVERED ON:

29 January 2025

HEARING DATE:

On the papers

DECISION OF:

Member Taylor

ORDERS:

1. The applicant’s Application for Domestic Building Dispute filed 4 September 2023 is dismissed.

CATCHWORDS:

CONTRACTS – BUILDING ENGINEERING AND RELATED CONTRACTS – OTHER MATTERS – where a home owner entered into a building contract to construct a house on land which at the time of contract was not a registered lot – where the owner had paid a deposit under that building contract – where the building contractor went into liquidation before construction of the house commenced – where the owner subsequently entered into a new building contractor with a second contractor – where the second contractor did not require payment as deposit under the second building contract of the amount the owner had paid as a deposit under the first building contract - where the land was subject of a contract of purchase with a sunset date attached to it – where the lot was not registered by the sunset date resulting in the land sale contract being terminated – where the second house building contract was subsequently terminated – where the homeowner sought a refund from the second building contractor of the deposit paid under the first building contract – where the owner relied on terms of the second building contract as the premise for the refund claim – where the owner’s action was a renunciation of the second building contract – where the second contractor accepted that action and terminated the contract – where in the alternative the parties mutually discharged the contract - whether the second building contractor is liable to the owner for the amount of the deposit paid under the first building contract

Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115

Shevill v Builders Licensing Board (1982) 149 CLR 620

APPEARANCES & REPRESENTATION:

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

There are four proceedings in this Tribunal that ran together, each premised on similar facts and circumstances. Whilst the applicants are different, they all involve the same respondent. This is one of them. The others are BDL 286-23 – Cai v Homecorp; BDL 291-23 – Zhang & Anor v Homecorp; and BDL 293-23 – Luo v Homecorp.
The material filed for each of the applicants in the four matters was effectively identical in its format and content save only for the unique references therein to names of the applicants, the relevant property addresses, and dates and details of relevant contract and corresponding events.[1] Given such, I infer it was prepared by the same advisor to the applicants, and as will be apparent on reading of these reasons I infer that each of…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Chen v Homecorp Constructions Pty Ltd

Details

AGLC: Chen v Homecorp Constructions Pty Ltd [2025] QCAT 50
Case: [2025] QCAT 50
Decision Date: 29 January 2025

CaseChat Overview and Summary

Chen sought a refund of the deposit paid to Homecorp Constructions Pty Ltd under a building contract. The first contract was terminated due to Homecorp’s liquidation and because the land on which the house was to be built was not a registered lot at the time of the contract. Chen then entered into a new contract with another builder, but this contract was also terminated when the land sale was not completed in time. Chen argued that the second builder should refund the deposit paid to Homecorp, claiming that the second contract constituted a renunciation of the first contract. However, Homecorp was not a party to the second contract, and the second builder was not liable for the deposit under the first contract.

The court examined the relationship between the two contracts and the nature of the second builder's obligations. It held that the second builder was not bound by the terms of the first contract, nor was it responsible for the deposit paid under that contract. The second builder was not in breach of contract by not refunding the deposit, as the second contract was terminated by mutual agreement. The court concluded that the second builder had no liability to refund the deposit paid to Homecorp.

Orders

Orders of the court

1. The applicant’s Application for Domestic Building Dispute filed 4 September 2023 is dismissed.

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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