Marino v Versatile Homes Pty Ltd

Marino (the applicant) brought proceedings against Versatile Homes Pty Ltd (the respondent) in the Queensland Civil and Administrative Tribunal (QCAT). The dispute concerned alleged defects in a home constructed by the respondent for the applicant. The applicant sought orders for rectification of the identified defects and compensation for losses incurred.

QCAT was required to determine whether the defects identified by the applicant constituted a breach of the building contract and, if so, what remedies were available to the applicant. Specifically, the Tribunal had to assess the nature and extent of the defects, whether they were caused by the respondent's work or materials, and whether the applicant had acted reasonably in mitigating their losses.

Judge Jarrett found that several defects were indeed present and were attributable to the respondent's failure to exercise reasonable care and skill in the construction of the dwelling. The Tribunal applied principles of contract law, including the implied term of reasonable care and skill in the performance of building works. The assessment of damages focused on the cost of rectifying the defects to a standard that complied with the contract and relevant building codes.

The Tribunal ordered the respondent to pay the applicant a sum representing the cost of rectifying the identified defects, along with an amount for consequential losses.