JURISDICTION : STATE ADMINISTRATIVE TRIBUNAL
ACT: BUILDING SERVICES (COMPLAINT RESOLUTION AND ADMINISTRATION) ACT 2011 (WA)
CITATION: DESHMUKH and DISTINCTIVE BUILDING SERVICES PTY LTD [2024] WASAT 62
MEMBER: MR D AITKEN, SENIOR MEMBER
HEARD: 10 JUNE 2024
DELIVERED : 1 JULY 2024
FILE NO/S: CC 1089 of 2023
BETWEEN: SONAL RAMESH KONDE DESHMUKH
First Applicant
ABHIJEET KALE
Second Applicant
AND
DISTINCTIVE BUILDING SERVICES PTY LTD
Respondent
Catchwords:
Home building work contract (HBWC) - Breach of contract - HBWC remedy for compensation for rent paid by owners for residential accommodation because of delay in completion of dwelling - Water charges, local government rates and interest on applicants' loan are not a loss caused by the builder's breach of contract - Costs
Legislation:
Building Services (Complaint Resolution and Administration) Act 2011 (WA), s 3, s 41(2)(d)(i), s 43(1)(a), s 49(1), s 58(2), s 58(5),
State Administrative Tribunal Act 2004 (WA), s 9, s 87(1)
Result:
Application partly successful
Category: B
Representation:
Counsel:
| First Applicant | : | In Person |
| Second Applicant | : | In Person |
| Respondent | : | Mr K Hassan (acting as Agent) and Mr M Hassan (Director) |
Solicitors:
| First Applicant | : | N/A |
| Second Applicant | : | N/A |
| Respondent | : | N/A |
Case(s) referred to in decision(s):
Deshmukh and Distinctive Building Services Pty Ltd [2024] WASAT 15
Ghetia and Beyond Builders Pty Ltd [2024] WASAT 17
Gileno and Riviera Homes (WA) Pty Ltd [2018] WASAT 48 (S)
Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92
Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92 (S)
Marvelle Investments Pty Ltd and Argyle Holdings Pty Ltd [2010] WASAT 125 (S)
Perth Central Holdings Pty Ltd and Doric Constructions Pty Ltd [2008] WASAT 302
Total Waste Management Pty Ltd v The City of Kalgoorlie-Boulder [2010] WASC 234
Western Australian Planning Commission v Questdale Holdings Pty Ltd [2016] WASCA 32
REASONS FOR DECISION OF THE TRIBUNAL:
Introduction
On 25 October 2021 the applicants, Mr Abhijeet Kale and Ms Sonal Ramesh Konde Deshmukh (Owners) entered into a home building work contract (Contract) with the respondent, Distinctive Building Services Pty Ltd (Builder) for the construction of a dwelling on land owned by the Owners in Piara Waters.
Construction of the dwelling should have been completed by 10 January 2023 (Finish Date). This had not occurred at the time of the final hearing of this matter on 10 June 2024, but during the final hearing the Builder's representative said completion should be achieved by 30 June 2024.
The Owners have been renting residential premises (rental accommodation) in the nearby suburb of Success awaiting the completion of the dwelling.
The Owners are seeking an order for compensation from the Builder for the delay in the completion of the dwelling for several financial costs they have incurred. First, the cost of the rental accommodation from the Finish Date until they can move into the dwelling. Second, for water charges and local government rates they have paid for their land from the…
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- Case
- [2024] WASAT 62
- Decision Date
CaseChat Overview and Summary
The court held that the water charges, local government rates, and interest on the applicants' loan were not a loss caused by the builder's breach of contract. The court reasoned that these costs were not directly attributable to the delay in completion of the dwelling and, therefore, were not recoverable under the home building work contract remedy. The builder was not liable for these additional costs. The court found that the applicants were only entitled to compensation for the actual rent paid for residential accommodation due to the delay in completion. The builder's liability was limited to the direct costs incurred by the applicants as a result of the delay.
The court ordered the builder to pay compensation to the applicants for the rent paid for residential accommodation due to the delay in completion of the dwelling. The court further ordered the builder to pay the applicants' costs of the proceeding. The builder was not required to pay any compensation for water charges, local government rates, or interest on the applicants' loan.
Orders
Orders of the court
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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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