Lin v Maboudi t/as Vakuke Pty Ltd

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CITATION: Lin v Maboudi t/as Vakuke Pty Ltd [2015] QCAT 79
PARTIES: Angela Shun Jy Lin
(Applicant)
v
Saied Maboudi t/as Vakuke Pty Ltd
(Respondent)
APPLICATION NUMBER: BDL106-14
MATTER TYPE: Building matters
HEARING DATE: 16 February 2015
HEARD AT: Brisbane
DECISION OF: Member Deane
DELIVERED ON: 11 March 2015
DELIVERED AT: Brisbane
ORDERS MADE:

1.    Vakuke Pty Ltd is to pay Angela Shun Jy Lin the sum of $13,517.72.

2.    Vakuke Pty Ltd is to pay Angela Shun Jy Lin interest on the sum of $11,569.22 from 9 October 2013 until that sum is paid at the rate of $1.60 per day.

3.    Vakuke Pty Ltd is to provide or cause Saied Maboudi to provide a written authority to Angela Shun Jy Lin to authorise her to seek a refund from the Queensland Building and Construction Commission in respect of insurance paid.

4.    Vakuke Pty Ltd is to provide or cause Saied Maboudi to provide a written authority to Angela Shun Jy Lin to authorise her to seek a refund in respect of Q Leave Levy paid.

5.    Each party is to bear their own costs.

CATCHWORDS:

DOMESTIC BUILDING DISPUTE – claim for refund of moneys paid – withdrawal by homeowner from contract – builder’s licence suspended at time ‘contract’ signed – whether contract formed

COSTS – exercise of broad general discretion

Domestic Building Contracts Act 2000 (Qld), s 27, s 29, s 72, s 74, s 76, s 77, s 92
Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 28, s 100, s 102
Queensland Building and Construction Commission Act 1991 (Qld), s 38, s 42, s 53A, s 77

Smith Developments Pty Ltd v Maybrey Pty Ltd and Ors [2012] QCAT 234
Cascol Constructions Pty Ltd v Blanchard and Anor [2013] QCAT 270

Cook’s Construction P/L v SFS 007.298.633 P/L (formerly trading as Stork Food Systems Australasia P/L) [2009] QCA 75
Lyons v Dreamstarter Pty Ltd [2011] QCATA 142

APPEARANCES:

APPLICANT: Angela Shun Jy Lin
RESPONDENT: Saied Maboudi t/as Vakuke Pty Ltd

REPRESENTATIVES:

APPLICANT: Mr Trevis Mckewen
RESPONDENT: Mr Saied Maboudi, director of Vakuke Pty Ltd

REASONS FOR DECISION

  1. Ms Lin seeks a refund of all moneys paid, costs in the sum of $421.30 and interest at the rate of 5.05% per annum on the sum of $16,740 from 15 July 2013 because:

    a)    Vakuke’s building licence was suspended as at 9 July 2013 when the contract document was signed;

    b)    she withdrew from a building contract with Vakuke under the Domestic Building Contracts Act 2000 (Qld) (‘DBC Act’);

    c)    the contract document signed was not complete and therefore was not valid;

    d)    Vakuke breached a number of statutory provisions.

  2. Vakuke denies that all moneys paid are refundable. It contends that:

    a)    it was not engaged to perform all of the work;

    b)    most of the work was performed by Bana Consulting Engineers Pty Ltd, an engineering company;

    c)    third parties were engaged and paid out of the moneys received;

    d)    its building licence was…

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Details
Case
[2015] QCAT 79
Decision Date

CaseChat Overview and Summary

In the case of Lin v Maboudi t/as Vakuke Pty Ltd, the plaintiff, Angela Shun Jy Lin, sought a refund of monies paid to the defendant, Vakuke Pty Ltd, under a building contract. The defendant, Vakuke Pty Ltd, was represented by Saied Maboudi, who signed the contract on behalf of the company. The crux of the dispute was whether a valid building contract existed between the parties given that the builder's licence under which the contract was executed was suspended at the time the contract was signed.

The primary legal issue before the court was whether the contract was formed and thus enforceable, considering the suspension of Maboudi's licence. The court had to determine if the contract was void or if the suspension of the licence did not affect its validity. Additionally, the court needed to consider the appropriate exercise of its discretion in awarding costs.

The court found that the suspension of Maboudi’s licence rendered the contract void. This was based on statutory requirements that a building contract must be entered into by a person who holds a current building practitioner’s licence. Given that Maboudi’s licence was suspended, the contract was deemed not to have been formed, and therefore, Lin was entitled to a refund of the amounts paid. The court also exercised its discretion to award costs, directing that each party bear their own costs. Consequently, Lin was awarded a refund of $13,517.72 plus interest and was granted authorisation to seek refunds from the Queensland Building and Construction Commission and for Q Leave Levy paid.

Orders

Orders of the court

1. Vakuke Pty Ltd is to pay Angela Shun Jy Lin the sum of $13,517.72.

2. Vakuke Pty Ltd is to pay Angela Shun Jy Lin interest on the sum of $11,569.22 from 9 October 2013 until that sum is paid at the rate of $1.60 per day.

3. Vakuke Pty Ltd is to provide or cause Saied Maboudi to provide a written authority to Angela Shun Jy Lin to authorise her to seek a refund from the Queensland Building and Construction Commission in respect of insurance paid.

4. Vakuke Pty Ltd is to provide or cause Saied Maboudi to provide a written authority to Angela Shun Jy Lin to authorise her to seek a refund in respect of Q Leave Levy paid.

5. Each party is to bear their own costs.

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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