Monsour & Anor v C & R Darvill Pty Ltd

Marie and Bruce Monsour commenced proceedings in the Tribunal against C & R Darvill Pty Ltd seeking recovery of money paid to the builder as overpayments and damages for rectification of defective building work, along with a claim for out of pocket expenses and costs. The builder made a counter application for money owed in respect of a progress claim and for unpaid variation work. The Tribunal ordered that the Monsours pay the builder the sum of $134,407.62. The builder applied for its costs. The Tribunal considered the legal issues of whether indemnity costs or standard costs were appropriate, given a formal offer of settlement was made and rejected. The Tribunal found that indemnity costs were not appropriate because it was not unreasonable for the Monsours not to accept the offer of settlement. The Tribunal concluded that an award on the standard basis was appropriate. The Tribunal exercised its discretion to award standard costs to the builder and fixed the amount at $107,385.88.

The Tribunal ordered that the Monsours pay the builder costs fixed at $107,385.88 within 14 days of the date of the decision. The Monsours were ordered to pay the builder's costs of the proceedings on the standard basis, having regard to the result of the litigation and other relevant factors. The Tribunal found that the builder was successful in both defending against the Monsours' claim and in its counter application. The Tribunal rejected the Monsours' submissions that they were disadvantaged by the builder's conduct at hearing, and concluded that an award of standard costs to the builder was appropriate. The Tribunal fixed the builder's costs at $107,385.88, taking into account the broad brush approach permitted and the global view that standard costs generally work out to be two thirds of the costs actually incurred.