FRANKOWIAK and CHAMBERS

In the case of Frankowiak and Chambers, the dispute arose from a complaint regarding building services under the Building Services (Complaint Resolution and Administration) Act 2011 in Western Australia. The matter was heard by the Supreme Court of Western Australia. The complaint, originally lodged by the plaintiff, Frankowiak, against the defendant, Chambers, related to alleged substandard building services. Both parties ultimately reached an agreement on all aspects of the complaint except for the issue of costs.

The primary legal issue before the court was to determine the appropriate principles to apply in circumstances where the parties had settled the dispute without a hearing on the merits. Specifically, the court needed to establish a fair and reasonable basis for determining the costs incurred by the parties during the complaint resolution process. The court's task was to balance the principles of fairness and proportionality in the allocation of costs, considering the settlement reached and the nature of the dispute.

The court examined the relevant statutory framework and case law to determine the principles applicable to the allocation of costs in such circumstances. It noted that the Building Services (Complaint Resolution and Administration) Act 2011 did not provide explicit guidance on cost allocation in settled matters. The court concluded that the principles of proportionality and fairness should guide the allocation of costs. It held that the costs should be apportioned in a manner that reflects the conduct of the parties and the nature of the dispute. The court ordered that the costs be split equally between the parties, reflecting the settlement on all issues except costs, and the conduct of both parties throughout the resolution process.