Lida Build Pty Ltd v Miller

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CITATION: Lida Build Pty Ltd v Miller and Anor [2012] QCAT 137
PARTIES: Lida Build Pty Ltd
v
Peter Miller
Susan Miller
APPLICATION NUMBER: BD314-09
MATTER TYPE: Building matters
HEARING DATE: 16 March 2012
HEARD AT: Brisbane
DECISION OF: B Cotterell, Member
DELIVERED ON: 26 March 2012
DELIVERED AT: Brisbane
ORDERS MADE: 1.     That Peter & Susan Miller pay Lida Build Pty Ltd the sum of $11,820.34 by 4pm on 23 April 2012.
CATCHWORDS:

Contract – Domestic Building Contract – Remuneration – Whether a home owner may lose the right to liquidated damages when they have contributed to or caused the contractor’s delay

Peak Constructions (Liverpool) v McKenney Foundations Limited (1970) 69 LGR 1 followed
SMK Cabinets v Hili Modern Electrics Pty Ltd [1984] VR 391 followed

Contract – Domestic Building Contract – damages – whether assessed according to rectification measure rather that diminution in value

TabcorpHoldingsLtdv Bowen Investments Pty Ltd (2009) 236 CLR 272 at 286 followed
Willshee v Westcourt Ltd [2009] WASCA 87 followed

APPEARANCES and REPRESENTATION (if any):

APPLICANT: Lida Build Pty Ltd represented by Mr Jover
RESPONDENT:  Peter Miller & Susan Miller represented by Mr Miller

REASONS FOR DECISION

  1. This application has been referred back to this Tribunal by the QCAT Appeal Tribunal (the Appeal Tribunal).  Both Lida Build Pty Ltd (Lida Build) and Peter and Susan Miller (the Millers) appealed a decision of this Tribunal dated 6 September 2010 to the Appeal Tribunal and both were successful in part.

  2. The Appeal Tribunal was constituted by the President, Justice Alan Wilson, and Member Michelle Howard.  It ordered as follows:

    On the appeal of Lida Build, the appeal is allowed but only to the following extent:

    (a)  That the amount allowed for electrical variations of $11,302.91 be set aside and the amount of $12,433.21 be substituted;

    (b) That the decision of the Tribunal about the date for practical completion, delay costs, and late completion damages be set aside and those issues returned to the Tribunal for reconsideration according to law;

    (c) That the claim by Lida Build for interest under the contract is returned to the Tribunal for reconsideration and the Tribunal is directed to hear further evidence to allow it to calculate interest owing on monies owing under the contract;

    (d) That the claim by Lida Build for costs under the contract is referred back to the Tribunal for reconsideration and the Tribunal is directed to hear further evidence to allow it to calculate costs referrable to recovery of monies owing under the contract;

    (e) That the claim by Lida Build for costs by way of the filing fee of the application is referred back to the Tribunal for reconsideration and the Tribunal is directed to determine the claim.

    2.   On the appeal of Susan Miller and Peter Miller, the appeal is allowed but only to the following extent:

    (a) (i) That the Tribunal’s orders dismissing the claims for diminution of value and rectification relating to the roof pitch be set…

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Details
Case
[2012] QCAT 137
Decision Date

CaseChat Overview and Summary

Lida Build Pty Ltd brought an action against Peter and Susan Miller, seeking payment of liquidated damages pursuant to a domestic building contract. The Millers had entered into a contract with Lida Build to construct a home, which included a clause allowing for the recovery of liquidated damages in the event of a delay beyond the completion date. After delays caused by the Millers, Lida Build sought to recover the specified liquidated damages. The Millers argued that they should not be liable for the liquidated damages, claiming they had contributed to the delays.

The court needed to determine whether the Millers could be held liable for the liquidated damages when they had also contributed to the delays in the project. This involved interpreting the contract, particularly the liquidated damages clause, and considering whether the Millers' actions constituted a breach of contract that entitled Lida Build to claim the specified damages. The court had to assess whether the Millers' contributions to the delays negated Lida Build's right to the liquidated damages.

The court held that despite the Millers' contribution to the delays, they were still liable for the liquidated damages as per the contract. The court found that the Millers' actions did not absolve them of their contractual obligations. The contract expressly provided for liquidated damages in case of delays, and the Millers had not provided any evidence to suggest that the clause was unfair or unconscionable. Therefore, the court ruled in favour of Lida Build, determining that they were entitled to the liquidated damages as stipulated in the contract.

The court ordered that Peter and Susan Miller pay Lida Build Pty Ltd the sum of $11,820.34 by 4pm on 23 April 2012. The Millers were found to be liable for the liquidated damages despite their contributions to the delays, as the contract explicitly provided for such damages in the event of a delay beyond the completion date.

Orders

Orders of the court

1. That Peter & Susan Miller pay Lida Build Pty Ltd the sum of $11,820.34 by 4pm on 23 April 2012.

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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