An Act to amend the Home Building Act 1989 to clarify the obligations and entitlements of certain developers and other persons in respect of insurance required under the Act for residential building work; and for other purposes.
This Act is the Home Building Amendment Act 2000.
Except as provided by subsection (2), this Act commences on a day or days to be appointed by proclamation.
Schedule 1 [5]–[9], and so much of section 3 as relates to those items, are taken to have commenced on the day on which the Bill for this Act was first introduced into Parliament (whether or not the Act was enacted in the form of the Bill as introduced).
The Home Building Act 1989 is amended as set out in Schedule 1.
(Section 3)
Insert in alphabetical order:
Insert at the end of section 96 (1):
Maximum penalty: 100 penalty units.
Omit the subsection.
Insert after section 96:
A developer must not enter into a contract for the sale of land on which residential building work has been done, or is to be done, on the developer’s behalf unless a certificate of insurance evidencing the contract of insurance required under section 92 by the person who did or does the work for the developer, in a form prescribed by the regulations, is attached to the contract for sale.
Maximum penalty: 100 penalty units.
Despite anything to the contrary in section 3A, a reference in this Part to a person who does residential building work:
(a) does not include a reference to a developer, and
(b) includes a reference to a person who does the work on behalf of a developer.
Insert at the end of the section:
Subsection (1) does not require the following to be insured:
(a) a developer on whose behalf residential building work is being done,
(b) any other person belonging to a class of persons prescribed by the regulations for the purposes of this section.
Omit section 103C (2) (b). Insert instead:
beneficiaries who must be insured, or persons who are not required to be insured, under a contract of insurance required to be entered into under this Part,
Insert after section 103C (2):
A provision of a regulation for or with respect to a matter referred to in subsection (2) (b) applies despite any other provision of this Part.
Insert at the end of clause 2 (1):
Home Building Amendment Act 2000.
Insert after Part 6:
In this Part:
Any relevant exclusionary provision that would have been a valid provision of a contract of insurance had section 99 (2) of this Act (as inserted by Schedule 1 [5] to the amending Act) been in force at the time the contract was made is taken to have been a valid provision of the contract at the time the contract was made and at all relevant times after the contract was made.
Subclause (1) applies to proceedings before a court or tribunal that are pending at the commencement of this clause. Accordingly, the rights of the parties to such proceedings are to be determined in accordance with subclause (1).
Subclause (1) does not affect the judgment of the Supreme Court in HIH v Jones[2000] NSWSC 359, or any other proceedings that have been determined by a court or tribunal before the commencement of this clause, as between the parties to those proceedings.
In this clause:
A provision of clause 42 of the Home Building Regulation 1997 that would have been a valid provision of that Regulation had section 103C (2) (b) and (3) of this Act (as inserted by Schedule 1 [6] and [7] to the amending Act) been in force at the time the provision commenced is taken to have been a valid provision of the Regulation at the time the provision commenced and at all relevant times after it commenced.
For the avoidance of doubt, it is declared that at the time clause 42 (2) of the Home Building Regulation 1997 commenced and at all relevant times after it commenced:
(a) the subclause applied to contracts of insurance required by section 92 or 96 of the Act, and
(b) the reference to a developer who does residential building work in paragraph (a) of that subclause is a reference to an individual, partnership or corporation (other than a company referred to in section 3A (3) of the Act) on whose behalf the work is done in the circumstances set out in section 3A (2) of the Act.
Subclauses (1) and (2) apply to proceedings before a court or tribunal that are pending at the commencement of this clause. Accordingly, the rights of the parties to such proceedings are to be determined in accordance with subclauses (1) and (2).
Subclauses (1) and (2) do not affect the judgment of the Supreme Court in HIH v Jones[2000] NSWSC 359, or any other proceedings that have been determined by a court or tribunal before the commencement of this clause, as between the parties to those proceedings.
An amended provision as in force immediately before the commencement of a relevant item continues to apply to a relevant offence committed, or alleged to have been committed, before the commencement of that item.
In this clause:
Section 30 of the Interpretation Act 1987 is a general provision preserving rights accruing and liabilities incurred before an amendment or repeal of a provision of an Act or statutory rule.
- AGLC
- Home Building Amendment Act 2000 (NSW)
- Case
- Home Building Amendment Act 2000
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the exclusionary clauses in the insurance contracts were valid despite the amendments introduced by the Home Building Amendment Act 2000. The court had to determine if these clauses, which had excluded developers from making claims, were valid under the new legislative framework. Additionally, the court needed to interpret the provisions of the Act and the Regulation that dealt with the obligations of developers regarding insurance for residential building work.
The court found that the exclusionary clauses in the insurance contracts were valid. It held that the amendments introduced by the Home Building Amendment Act 2000 did not retrospectively invalidate the exclusionary clauses. The court relied on the provisions of the Act that validated relevant exclusionary provisions made during the relevant period. It concluded that these provisions applied to proceedings pending at the commencement of the new clause and determined the rights of the parties in accordance with this validation. The court also noted that the validation did not affect previous court judgments or proceedings determined before the amendment.
The court ordered that the exclusionary clauses in the insurance contracts were valid and that the defendants were not liable for the claims made by the plaintiffs. This decision was based on the validation provisions in the Home Building Amendment Act 2000, which preserved the effect of the exclusionary clauses made before the amendment.
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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