Lange v Queensland Building Services Authority

SUPREME COURT OF QUEENSLAND

CITATION:

Lange v Queensland Building Services Authority [2010] QSC 266

PARTIES:

SHANE ANDREW LANGE
(applicant)

v

QUEENSLAND BUILDING SERVICES AUTHORITY
(respondent)

FILE NO/S:

BS1930 of 2009

DIVISION:

Trial Division

PROCEEDING:

Hearing

ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON:

28 July 2010

DELIVERED AT:

Brisbane

HEARING DATE:

22 July 2010

JUDGE:

Martin J

ORDER:

APPLICATION DISMISSED

CATCHWORDS:

ADMINISTRATIVE LAW – JUDICIAL REVIEW – ERROR OF LAW – where the two people entered a contract with the applicant to construct three townhouses comprising one duplex and a single detached dwelling – where the two people were insured under a policy created pursuant to the Queensland Building Services Authority Act 1991 (Qld) – where the work was not completed – where the applicant was placed in liquidation – where the insured made a claim for non-completion and was paid $200,000 by the respondent – where the respondent sought to recover $200,000 from the applicant – whether the insurance policy was properly construed by the respondent

Queensland Building Services Authority Act 1991 (Qld), ss 3, 71, 111C

Queensland Building Services Authority Regulation 2003 (Qld), rr 9, 10, 11, 12

Hall v Jones (1942) 42 SR (NSW) 203

COUNSEL:

S Armitage for the applicant

M Luchich for the respondent

SOLICITORS:

Kelly Lawyers for the applicant

Patane Lawyers for the respondent

[1]      In May 2007 two persons (whose identities are irrelevant to this decision, and to whom I shall refer as the insured) entered into a contract with Lange Constructions Pty Ltd (“the company”) for the construction of three town houses. Those town houses were to be constituted by one free-standing single townhouse and two others sharing a common party dividing wall and roof, that is, a duplex.

[2]      Work under the contract was not completed and the insured gave notice in writing of a claim to the respondent (“QBSA”) under the insurance policy created pursuant to the terms of the Queensland Building Services Authority Act 1991 (“the Act”).

[3]      In May 2008 the company was placed into liquidation.

[4]      In December 2008 QBSA determined that the residential construction work under the contract was incomplete. Notice in writing of the decision to allow the claim was given to the company and in late December 2008 the respondent paid the sum of $200,000 to the insured in respect of their claim for non-completion of the residential construction work under the contract.

[5]      The QBSA has sought to recover from the applicant the sum of $200,000. The applicant seeks an order under the Judicial Review Act 1991 that the decision of the QBSA that the insured were entitled to indemnity be quashed or set aside.

[6]      The parties have conducted this litigation in such an efficient manner that only one issue needs to be considered: the proper construction of a clause in the statutory insurance policy.

The statutory scheme

[7] The relevant version of the Act for the purposes of this application is that contained in reprint No 8E.

[8] The objects of…