Fair Trading Administration Corporation v Tebbutt

In the case of Fair Trading Administration Corporation v Tebbutt, the Fair Trading Tribunal was called upon to resolve a dispute regarding the interpretation of the Building Services Corporation Act and the obligations of the Building Services Corporation under the Building Services Corporation Insurance Scheme. The Tribunal was tasked with determining the extent of the Corporation's liability to indemnify claims in respect of the cost of rectifying defective building work.

The primary legal issues before the Tribunal involved statutory interpretation. The Tribunal had to determine the meaning of the term "decision" by the Building Services Corporation under the Building Services Corporation Act and the scope of the term "appeal" from such a decision. Additionally, the Tribunal needed to construe the Corporation's obligations under the Insurance Scheme, specifically whether it was liable to indemnify claims for the cost of rectifying defective building work, irrespective of whether the claimant had carried out the rectification work or incurred any liability for doing so.

The Tribunal found that the term "decision" in the Building Services Corporation Act referred to a final determination by the Corporation regarding a matter within its jurisdiction. The Tribunal also held that an "appeal" from such a decision was a formal request for reconsideration of that decision. Regarding the Corporation's liability under the Insurance Scheme, the Tribunal ruled that the Corporation was only liable to indemnify for the reimbursement of costs of rectification actually incurred by the claimant or to save the claimant from liability to pay costs of carrying out rectification work. This interpretation limited the Corporation's liability to situations where the claimant had actually incurred costs or faced liability for rectification work.

The Tribunal's decision clarified the scope of the Corporation's obligations under the Insurance Scheme and provided guidance on the statutory terms "decision" and "appeal" within the context of the Building Services Corporation Act. The Tribunal's ruling limited the Corporation's liability to indemnify claims for the cost of rectifying defective building work to situations where the claimant had actually incurred costs or faced liability for rectification work. The outcome of this case has important implications for claimants seeking indemnity under the Insurance Scheme and the Corporation's obligations in such cases.