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
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
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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.
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The applicant seeks the sum of $75,896.81 being the costs of rectification.
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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
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The respondent was the builder and developer of strata scheme no 98687 (Scheme) situated at XXX Quakers Hill, NSW 2763 (Property).
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On 8 July 2019, the applicant purchased Lot 2 in the Scheme (Lot).
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The building works were undertaken in accordance with a contract
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On 29 July 2019, the strata plan 98687 for the scheme was registered (Strata Plan).
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The Lot is situated in the Scheme.
The Applicant’s claims
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The claims of the applicant are:
all the items set out in the joint Scots Schedule dated 22 June 2021;
$1,461.48 relating to an unpaid rates and water notices;
reimbursement of his expert report;
Procedural
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At the hearing the applicant appeared in person, and the respondent was represented by Mr Chatterjee of counsel.
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Due to the COVID protocols of the Tribunal the parties appeared by telephone.
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Prior to the hearing both parties had filed large amounts of material in accordance with directions of the Tribunal.
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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.
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The respondent relied on a report of Mr Mark Irvine of Tyrrells Property Inspections…
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- Case
- [2021] NSWCATCD 151
- Decision Date
CaseChat Overview and Summary
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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