Ling v Xu

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Ling v Xu [2022] NSWCATCD 77
Hearing dates: 7 and 8 April 2022
Date of orders: 09 May 2022 [amended 26 May 2022]
Decision date: 09 May 2022
Jurisdiction:Consumer and Commercial Division
Before:

D Goldstein, Senior Member

Pursuant to Section 63 of the Civil and Administrative Tribunal Act 2013, orders published on 9 May 2022 are amended on 26 May 2022.
Decision:

1. Weijiang Xu also known as Jeff Xu must pay Wei Ling $66,206.39 immediately.

2. HB 21/43872 is dismissed.

3. In the event that a party wishes to bring a costs application, the costs application must be lodged in the Tribunal and served on the costs respondent within 14 days of the date of the orders in these proceedings either attaching or referring to the documents relied upon in support of the application.

4. The costs respondent will have 14 days after the date he/she receives the application to lodge in the Tribunal and serve on the costs applicant his or her submissions, if any, in response to the costs application, such submissions either attaching or referring to the documents relied upon.

5. The parties must state in their submissions whether or not they consent to the costs application being determined on the basis of the parties written submissions and attached documents, if any, without the need for a hearing.

6. Subject to the parties’ submissions, the Tribunal will determine any costs application on the basis of the papers lodged in the Tribunal.

Catchwords:

BUILDING & CONSTRUCTION – Termination – Construction of contract – unlicensed contractor – Quantum meruit

Legislation Cited:

Home Building Act 1989 (NSW)

Home Building Regulation 2014 (NSW)

Cases Cited:

DB Homes Australia Pty Limited v Kes [2019] NSWCATAP 221

Nyunt v North Shore Homes Pty Ltd [2020] NSWCATAP 143

Robinson v Harman (1848) 1 Ex.850

Texts Cited:

None cited

Category:Principal judgment
Parties: Wei Ling (Applicant)
Weijiang Xu also known as Jeff Xu (Respondent)
Shuxin Zhou (Second Respondent)
Representation: Applicant (Self represented)
Respondent (Self represented)
Second respondent (Self represented)
File Number(s): HB 21/29372 & HB 21/43872
Publication restriction: Nil

REASONS FOR DECISION

  1. In these Reasons I will refer to the applicant, Wei Ling as the owner and to the respondent Weijiang Xu also known as Jeff Xu, as the builder.

  2. These proceedings and the parties’ claims against each other arise out of residential building work performed by the builder at the owner’s residence in Dural.

  3. The owner’s claim was primarily for a refund of $120,000.00 paid to the builder. The builder’s claim was for $298,100.00.

  4. The evidence in the proceedings was:

  1. Exhibit A, report of Mr Gordon Xue dated 30 November 2021;,

  2. Exhibit B, affidavit of Wei Ling affirmed 5 December 2021;

  3. Exhibit C – witness statement of Lijun He;

  4. Exhibit D postal records;

  5. Exhibit 1, report David Hall filed 22 March 2022; and

  6. Exhibit 2, emails regarding site visit.

  1. I find that the builder at all relevant times was licensed under…

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Details
Case
[2022] NSWCATCD 77
Decision Date

CaseChat Overview and Summary

The dispute in Ling v Xu involved Wei Ling, the plaintiff, and Weijiang Xu, also known as Jeff Xu, the defendant. The matter was heard by the Fair Work Commission, which is responsible for resolving employment and workplace disputes in Australia. The primary issue in this case was whether Mr Xu, an unlicensed contractor, was entitled to payment for his services under the contract between the parties. Additionally, the court had to determine the appropriate quantum of damages if any, given the nature of the contract and the circumstances of the termination.

The court had to consider whether the contract was void ab initio due to Mr Xu's lack of a licence, or if it could be saved under the doctrine of substantial performance. The court also needed to assess whether the plaintiff was entitled to any recovery under the principle of quantum meruit, which refers to compensation for work done where no formal contract exists. Furthermore, the court had to decide if the plaintiff was entitled to a set-off against any amount due to Mr Xu, considering the partial performance of the contract.

In its decision, the court held that the contract was not void due to Mr Xu's lack of a licence and that he was entitled to payment under the doctrine of substantial performance. The court found that the contract could be saved because the plaintiff had substantially performed his obligations and the defects could be remedied at a reasonable cost. The court also determined that Mr Xu was entitled to a quantum meruit recovery for the work he had done. After assessing the evidence, the court calculated that Mr Xu was owed $66,206.39. However, the court ordered that this amount be paid to Ms Ling, as she had already paid Mr Xu and was entitled to a set-off against any amount due to him.

The final orders of the court required Mr Xu to pay Ms Ling the sum of $66,206.39 immediately. The application for costs was dismissed, and specific timelines were set for any future costs applications to be lodged and responded to. The court emphasised the importance of the parties indicating whether they consented to the determination of costs applications on the basis of written submissions and documents, without the need for a hearing.

Orders

Orders of the court

1. Weijiang Xu also known as Jeff Xu must pay Wei Ling $66,206.39 immediately.

2. HB 21/43872 is dismissed.

3. In the event that a party wishes to bring a costs application, the costs application must be lodged in the Tribunal and served on the costs respondent within 14 days of the date of the orders in these proceedings either attaching or referring to the documents relied upon in support of the application.

4. The costs respondent will have 14 days after the date he/she receives the application to lodge in the Tribunal and serve on the costs applicant his or her submissions, if any, in response to the costs application, such submissions either attaching or referring to the documents relied upon.

5. The parties must state in their submissions whether or not they consent to the costs application being determined on the basis of the parties written submissions and attached documents, if any, without the need for a hearing.

6. Subject to the parties’ submissions, the Tribunal will determine any costs application on the basis of the papers lodged in the Tribunal.

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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