Mobile Building System International Pty Ltd v Hua

Mobile Building System International Pty Ltd sought leave to appeal a decision of the tribunal in the Queensland Civil and Administrative Tribunal. The primary matter was a dispute between the builder and a homeowner over alleged defects in a house. The homeowner had been awarded damages against the builder, which was now appealing on the issue of quantum. In the meantime, the homeowner applied for security for costs, arguing that the builder could not demonstrate an ability to pay the costs of the appeal. The tribunal was required to determine whether it should exercise its discretion to order security for costs.

The tribunal noted that the builder was currently in liquidation and had been for some time. It held that the builder had not demonstrated any capacity to pay the costs of the appeal. It considered the principles established in cases such as GIO Australia Holdings Limited v Peh, and found that the tribunal should exercise its discretion to order security for costs. It determined the amount to be paid based on an estimate of the homeowner's costs, and ordered the builder to pay this amount into a trust account by a specified date.

No further appeal was granted on the issue of security for costs, and the order was made as directed.