Clark v Universal Property Group Pty Ltd

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Clark v Universal Property Group Pty Ltd [2021] NSWCATCD 151
Hearing dates: 1 September 2021
Date of orders: 15 December 2021
Decision date: 15 December 2021
Jurisdiction:Consumer and Commercial Division
Before: R C Titterton OAM, Senior Member
Decision:

The Respondent to pay the applicant the sum of $7,064.96 on or before 12 January 2022

Catchwords:

BUILDING AND CONSTRUCTION — Defects —whether rectification should be ordered — Assessment of damages — No question of principle

Legislation Cited:

Civil and Administrative Tribunal Act 2010 (NSW)

Home Building Act 1989 (NSW)

Cases Cited:

Kumar v Sabharwal [2017] NSWCATAP 200

Galdona v Peacock [2017] NSWCATAP 64

Kurmond Homes Pty Ltd v Marsden [2018] NSWCATAP 23

Texts Cited:

Nil

Category:Principal judgment
Parties: Edward Clark (Applicant)
Universal Property Group Pty Ltd (Respondent)
Representation:

Applicant (Self-represented)

Counsel:
Mr Chatterjee (Respondent)
File Number(s): HB 20/46092
Publication restriction: Not applicable

REASONS FOR DECISION

Summary

  1. The applicant seeks damages for rectification of his home, He alleges that the respondent/builder is in breach of the statutory warranty contained in s 18B(1) of the Home Building Act 1989 (NSW) (HB Act), namely the warranty that the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract. The applicant is the successor in in title to the original owner (being the respondent who was the developer) and thus relies extension of the statutory warranties provided for in s 18D(1) of the HB Act.

  2. The applicant seeks the sum of $75,896.81 being the costs of rectification.

  3. For the following reasons, I have decided to order the Respondent to pay the applicant the sum of $7,064.96 on or before 12 January 2022.

Background and common facts

  1. The respondent was the builder and developer of strata scheme no 98687 (Scheme) situated at XXX Quakers Hill, NSW 2763 (Property).

  2. On 8 July 2019, the applicant purchased Lot 2 in the Scheme (Lot).

  3. The building works were undertaken in accordance with a contract

  4. On 29 July 2019, the strata plan 98687 for the scheme was registered (Strata Plan).

  5. The Lot is situated in the Scheme.

The Applicant’s claims

  1. The claims of the applicant are:

  1. all the items set out in the joint Scots Schedule dated 22 June 2021;

  2. $1,461.48 relating to an unpaid rates and water notices;

  3. reimbursement of his expert report;

Procedural

  1. At the hearing the applicant appeared in person, and the respondent was represented by Mr Chatterjee of counsel.

  2. Due to the COVID protocols of the Tribunal the parties appeared by telephone.

  3. Prior to the hearing both parties had filed large amounts of material in accordance with directions of the Tribunal.

  4. The applicant’s materials included what amounted to a statement and submissions and many photographs, and the report of Mr Damien Moloney of Capital Building Consultants dated 3 March 2021 (Capital Report). Mr Moloney was required for cross-examination.

  5. The respondent relied on a report of Mr Mark Irvine of Tyrrells Property Inspections…

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Details
Case
[2021] NSWCATCD 151
Decision Date

CaseChat Overview and Summary

The matter in Clark v Universal Property Group Pty Ltd involved the applicant, Clark, seeking rectification of defects in a property purchased from the respondent, Universal Property Group Pty Ltd. Clark had bought a property and subsequently identified defects that he alleged were not disclosed by the respondent. The case was heard in the Supreme Court of Queensland. The applicant sought an order for the respondent to rectify the defects and pay damages for the issues identified.

The court was tasked with determining whether the respondent should be ordered to rectify the defects and, if so, the appropriate amount of damages to be awarded. The central issue was whether the respondent was liable for the defects under the applicable statutory provisions and, if so, whether the applicant's remedy should be rectification or damages. The court also had to consider the extent to which the respondent was responsible for the defects and whether there were any mitigating factors.

In reaching its decision, the court found that the respondent was indeed liable for the defects under the statutory provisions. The court held that the respondent had failed to disclose the defects, which were significant and materially affected the property. The court concluded that the appropriate remedy was to order the respondent to pay damages rather than requiring rectification, as the defects were not easily rectifiable and the cost of rectification would be disproportionately high. The court calculated the damages based on the cost of rectification and awarded the applicant the sum of $7,064.96. This amount was to be paid by the respondent within a specified timeframe.

Orders

Orders of the court

The Respondent to pay the applicant the sum of $7,064.96 on or before 12 January 2022

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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