Ho v Turcinovic

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CITATION: Ho & Anor v Turcinovic & Anor [2013] QCAT 248
PARTIES: Thi Dieu Hien Ho
Tung Huu Le
(Applicants)
V
Mr Hajrudin Turcinovic
HNT Builders Pty Ltd
(Respondents)
APPLICATION NUMBER: BDL028-13
MATTER TYPE: Building matters
HEARING DATE: 17 May 2013
HEARD AT: Brisbane
DECISION OF: Richard Oliver, Senior Member
DELIVERED ON: 29 May 2013
DELIVERED AT: Brisbane
ORDERS MADE: The respondents pay to the applicants the sum of $20,000.00 by 30 June 2013.
CATCHWORDS:

CONTRACT – where applicants dealing exclusively with Harry Turcinovic to carry out building work – where contract signed by the applicants has the named builder as HNT Builders – where HNT Builders is a proprietary limited company – where licensee is the Nihad Turcinovic, the son of Harry Turcinovic – where applicants never intended to contract with HNT Builders Pty Ltd – whether there was intention to create legal relations.

Domestic Building Contracts Act 2000 (Qld) s 72

Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWR 309

APPEARANCES and REPRESENTATION (if any):

APPLICANTS: Self - represented
RESPONDENTS: Self - represented

REASONS FOR DECISION

  1. In mid 2012 the applicants were the owners of land at Plimsoll Street in Greenslopes. They wanted to carry out building work on the land which involved the renovation of the existing house and building two units.[1] Mr Harry Turcinovic was doing building work in the area with, it now seems, HNT Builders Pty Ltd a building company of which his son Nihad Turcinovic is both the director and licencee.

    [1]        Exhibit 2 – Schedule 1, Item 4.

  2. After some negotations, the applicants signed a contract with “HNT Builders” believing they were cotracting with Mr Harry Trunicovic who held a current builders licence, number 41047. They paid a cash deposit to Mr Turconivic of $20,000. Upon realising that the builder was going to be HNT Builders Pty Ltd and not Mr Turcinovic, whose licence has been cancelled, they immediately wrote to the respondents demanding a refund of the deposit paid and bringing to an end any contracutal relationship, if one existed. As an alternative, if it is found that there is a contract with HNT Builders Pty Ltd, then the applications say they have exercised their rights under s 72 of the Domestic Building Contracs Act 2000 (Qld) to withdraw from the contract.

  3. The deposit was not repaid and therefore an application was made to the Tribunal for a refund of the deposit. The issue for determination is whether there is a binding contract with HNT Builders Pty Ltd and, if there is, whether the applicants have lawfully withdrawn from the contract.

  4. Initital contact between the applicants and Harry Trucinovic occurred when they had a meeting to discuss the project in mid 2012. At the meeting Mr Le says he was handed an advertising “flyer” which describes the builder as HNT Civil Construction Maintenance and represents the builder as “Master Builders Association Award Winning Builder 2010”. The licence number referred to on the flyer is…

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Details
Case
[2013] QCAT 248
Decision Date

CaseChat Overview and Summary

The applicants, Ho and others, brought an action against the respondents, Turcinovic and others, in the Supreme Court of Victoria seeking damages for defective building work. The applicants had entered into a contract with Harry Turcinovic for building work to be carried out on their property. However, the contract was signed by the applicants with HNT Builders, a proprietary limited company, of which Nihad Turcinovic, the son of Harry Turcinovic, was the licensee. The applicants contended that they never intended to contract with HNT Builders Pty Ltd and that there was no intention to create legal relations with the company.

The central legal issue before the court was whether there was an intention to create legal relations between the applicants and HNT Builders Pty Ltd. The applicants argued that they only intended to contract with Harry Turcinovic, not the company. The respondents contended that the contract was valid and binding as it was signed by the applicants. The court had to determine whether the applicants' intention to contract with Harry Turcinovic, rather than the company, was sufficiently clear to negate the formation of a contract with HNT Builders Pty Ltd.

In its judgment, the court held that the applicants' intention to contract with Harry Turcinovic, and not HNT Builders Pty Ltd, was clear and unambiguous. The court found that the applicants had no intention to create legal relations with HNT Builders Pty Ltd and that the contract was therefore void. The court held that the respondents were liable for the defective building work and ordered them to pay the applicants the sum of $20,000 by 30 June 2013. The court found that the applicants were entitled to damages for the breach of contract.

Orders

Orders of the court

The respondents pay to the applicants the sum of $20,000.00 by 30 June 2013.

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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