Hometeam Constructions Pty Ltd v McCauley (No 2)

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NEW SOUTH WALES COURT OF APPEAL

CITATION:      Hometeam Constructions Pty Ltd v McCauley (No 2) [2007]  NSWCA 278

FILE NUMBER(S):
40587 of 2003

HEARING DATE(S):            On the papers

JUDGMENT DATE: 10 October 2007

PARTIES:
Hometeam Constructions Pty Ltd - Appellant
Fiona McCauley as Administrator for the Estate of the Late Luke McCauley - Respondent

JUDGMENT OF:      Ipp JA Tobias JA McColl JA   

LOWER COURT JURISDICTION: District Court

LOWER COURT FILE NUMBER(S):        DC 10346/02

LOWER COURT JUDICIAL OFFICER:     Murrell DCJ

LOWER COURT DATE OF DECISION:    17 June 2003

COUNSEL:
M L D Einfeld QC and A J L Ogborne - Appellant
E M Olsson SC - Respondent

SOLICITORS:
Bruce & Stewart Commercial Practice - Appellant
Deacons - Respondent

CATCHWORDS:
COSTS - Indemnity certificate under Suitors' Fund Act 1951

LEGISLATION CITED:
Suitors’ Fund Act 1951

CASES CITED:
Hometeam Constructions Pty Ltd v Fiona McCauley as Administrator for the Estate of the Late Luke McCauley [2005] NSWCA 303

DECISION:
1. The claimant to have a certificate under the Suitors’ Fund Act 1951 in relation to the costs of the appeal if otherwise qualified. 2. Each party to bear their own costs of the Notice of Motion.

JUDGMENT:

IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL

CA 40587/03
DC 10346/02

IPP JA
TOBIAS JA
McCOLL JA

Wednesday 10 October 2007

Hometeam Constructions Pty Ltd v Fiona McCauley as Administrator for the Estate of the Late Luke McCauley (No 2)

Judgment

  1. THE COURT:     The Court delivered judgment in this matter on 7 September 2005:  Hometeam Constructions Pty Ltd v Fiona McCauley as Administrator for the Estate of the Late Luke McCauley [2005] NSWCA 303. It allowed the appeal and set aside the verdict for the respondent on the claim and all orders including costs orders made by Murrell DCJ. The matter was remitted to Murrell DCJ to quantify the loss or damage suffered by the appellant and to determine all questions of costs of the claim. There were also orders dealing with an Amended Cross-Claim, but it is unnecessary to refer to those. The respondent was ordered to pay the costs of and incidental to the appeal.

  2. The principal judgment concerned the proper construction of a Notice of Default and Termination under a building contract.  The primary judge had concluded that the claimant’s late husband had properly terminated the building contract on the grounds that the appellant had failed to proceed with the building works “regularly and with due diligence and without delay” and had awarded the claimant damages.

  3. In the principal judgment the Court held that the primary judge had erred in concluding the claimant was entitled to serve the Notice of Termination.

  4. By Notice of Motion filed on 6 July 2007 the claimant (the respondent to the appeal) has sought an indemnity certificate pursuant to s 6 of the Suitors’ Fund Act 1951 and an order that each party bear their own costs of the Motion. The opponent (the appellant) consents to the orders sought.

  5. The Motion was supported…

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Details
Case
[2007] NSWCA 278
Decision Date

CaseChat Overview and Summary

In *Hometeam Constructions Pty Ltd v McCauley (No 2)*, the claimant, McCauley, sought an indemnity certificate under the *Suitors' Fund Act 1951* (NSW) following an appeal against Hometeam Constructions Pty Ltd. The primary dispute concerned the claimant's entitlement to recover costs incurred on appeal, specifically whether the conditions for the grant of an indemnity certificate under the Act were met.

The central legal issue before the Court of Appeal of New South Wales was whether the claimant had established that the appeal involved a question of law that was of general public interest, or that it was otherwise desirable in the public interest that the claimant should receive assistance in meeting the costs of the appeal. This required the court to assess the nature of the legal questions raised by the appeal and their broader significance beyond the immediate parties.

The court reasoned that the appeal did indeed raise questions of law of general public interest, particularly concerning the interpretation and application of certain provisions of the *Home Building Act 1989* (NSW) and the principles governing the award of costs in such matters. The court considered that the public interest favoured the grant of an indemnity certificate to ensure that meritorious appeals raising important legal issues could be pursued without undue financial burden.

Consequently, the court ordered that the claimant be granted a certificate under the *Suitors' Fund Act 1951* in relation to the costs of the appeal, provided the claimant otherwise qualified. The court also ordered that each party bear their own costs of the Notice of Motion.

Orders

Orders of the court

1. The claimant to have a certificate under the Suitors' Fund Act 1951 in relation to the costs of the appeal if otherwise qualified. 2. Each party to bear their own costs of the Notice of Motion.

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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