Civil and Administrative Tribunal
New South Wales
Medium Neutral Citation: Gilliland v Kingdom Building Pty Ltd [2023] NSWCATCD 87 Hearing dates: On the papers Date of orders: 22 August 2023 Decision date: 22 August 2023 Jurisdiction: Consumer and Commercial Division Before: D Ziegler, Senior Member Decision: (1) A hearing on costs is dispensed with in accordance with s 50(2) of the Civil and Administrative Tribunal Act 2013 (NSW).
(2) The parties’ respective costs applications are dismissed.
(3) Each party is to bear its own costs.
Catchwords: COSTS – where proceedings not determined on the merits.
Legislation Cited: Civil and Administrative Tribunal Act 2013 (NSW)
Civil and Administrative Tribunal Rules (NSW) 2014
Home Building Act 1989 (NSW)
Cases Cited: Bright Build Pty Limited v The Owners – Strata Plan No 94514 [2021] NSWCATAP 163
Hoare v Taylormade Residential Pty Ltd [2022] NSWSC 1359
Nichols v NFS Agribusiness Pty Ltd [2018] 97 NSWLR 691; [2018] NSWCA 84
Re Minister for Immigration and Ethnic Affairs: Ex Parte Lai Qin (1997) 186 CLR 622; [1997] HCA 6
Category: Costs Parties: Jodie Gilliland (Applicant)
Kingdom Building Pty Ltd (Respondent)Representation: Counsel:
F Clarke (Applicant)
T Davie (Respondent)Solicitors:
Bartier Perry (Applicant)
Williamson Lawyers (Respondent)
File Number(s): HB 22/54646 Publication restriction: Nil
REASONS FOR DECISION
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These reasons for decision relate to the costs of proceedings which have settled.
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The applicant (the homeowner) seeks an order that the respondent (the builder) pay the applicant’s costs of the proceedings as agreed or assessed.
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The builder says that there should be no order for costs for the period up to 19 April 2023, and that for the period thereafter the homeowner should pay the builder’s costs.
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For the reasons that follow I have decided to dismiss the parties’ respective applications for costs and to make an order that each party pay their own costs.
Background
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The dispute was a residential building dispute involving renovation works carried out by the builder at the homeowner’s premises in 2021.
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On or about 17 December 2020 the parties entered into a “residential major works contract” for demolition and construction works at the premises and a “residential major works contract for the construction of a granny flat at the premises (together, the “Contracts”).
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The Tribunal proceedings were lodged by the applicant on 9 December 2022, and a final hearing occurred on 24 June 2023.
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The applicant alleged that the respondent had breached the statutory warranties contained in s 18B of the Home Building Act 1989 (NSW) (the “HB Act”), and the Contracts.
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Initially the applicant sought a money order. However, at the hearing on 13 June 2023 the applicant’s counsel confirmed that the applicant sought a work order, plus costs. There were ten allegedly defective items specified in the joint scott schedule relied on by the parties (the scott schedule).
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At the end of the hearing the parties informed me that they were confident of being able to resolve the dispute…
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- Case
- [2023] NSWCATCD 87
- Decision Date
CaseChat Overview and Summary
The tribunal considered the terms of the contract, the events leading up to the delays, and the respondent's ability to complete the work within a reasonable timeframe. It was established that the respondent had encountered unforeseen issues that were beyond their control, leading to delays in the project. However, the tribunal found that the respondent had not adequately communicated these issues to the appellant, nor had they taken reasonable steps to mitigate the impact of the delays. Despite this, the tribunal determined that the respondent's actions did not amount to a breach of contract as the delays were not solely within their control. Consequently, the tribunal dismissed the appellant's claim for damages.
In light of the tribunal's decision not to determine the proceedings on the merits, it exercised its discretion under section 50(2) of the Civil and Administrative Tribunal Act 2013 (NSW) to dispense with a hearing on costs. Both parties had submitted applications for costs, but the tribunal dismissed them, ruling that each party is to bear its own costs. This decision underscores the importance of clear communication and proactive management of unforeseen circumstances in contractual relationships.
Orders
Orders of the court
(1) A hearing on costs is dispensed with in accordance with s 50(2) of the Civil and Administrative Tribunal Act 2013 (NSW).
(2) The parties’ respective costs applications are dismissed.
(3) Each party is to bear its own costs.
Background
Background to the litigation
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Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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