Mt Cotton Constructions Pty Ltd v Greer

Case [2020] QCATA 157


QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Mt Cotton Constructions Pty Ltd v Greer & Anor [2020] QCATA 157

PARTIES:

MT COTTON CONSTRUCTIONS PTY LTD

(applicant)

v

KATE GREER

(first respondent)

DAMIEN GREER

(second respondent)

APPLICATION NO/S:

APL145-17

ORIGINATING APPLICATION NO/S:

BDL190-14

MATTER TYPE:

Appeals

DELIVERED ON:

17 November 2020

HEARING DATE:

On the papers

HEARD AT:

Brisbane

DECISION OF:

Senior Member Brown

Member Burke

ORDERS:

1.   Leave to appeal refused.

2.   The parties must file in the Tribunal three (3) copies and exchange one (1) copy of written submissions (no longer than 4 pages) in respect of the question of costs of the appeal within 14 days of the date of these orders.

CATCHWORDS:

PROCEDURE – CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS – COSTS – APPEAL AS TO COSTS – RELEVANT PRINCIPLES – WHERE WRONG EXERCISE OF DISCRETION – where the tribunal awarded costs on an indemnity basis in circumstances where an offer to settle was made but not accepted – whether error in the application of s 105 of the QCAT Act and r 86 of the QCAT Rules - consideration of the costs consequences flowing from a failure to accept a Calderbank offer – consideration of the reasonableness of the party in rejecting the offer

Domestic Building Contracts Act 2000 (Qld) (repealed), s 84(3), s 84(4)

Queensland Building and Construction Commission Act 1991 (Qld), s 77

Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 100, s 102(1), s 102(3), s 105, s 142(2)(c), s 142(3)(a)(iii)

Queensland Civil and Administrative Tribunal Rules 2009 (Qld), r 86

Barescape Pty Ltd as trustee for the V’s Family Trust & Anor v Bacchus Holdings Pty Ltd as trustee for The Bacchus Holdings Trust & Anor (No 12) [2012] NSWSC 1591

Bellgrove v Eldridge (1954) 90 CLR 613

Cachia v Grech [2009] NSWCA 232

Fick v Groves (No2) [2010] QSC 182

Glenwood Properties Pty Ltd v Delmoss Pty Ltd [1986] 2 Qd R 388

Greer & Anor v Mt Cotton Constructions Pty Ltd [2018] QCATA 196

House v R (1936) 55 CLR 499

Lee Manson t/as Manson Homes v Brett & Anor [2018] QCATA 109

Lyons v Dreamstarter Pty Ltd [2011] QCATA 142

McGee v Queensland Building and Construction Commission & Anor [2018] QCATA 124

McIver Bulk Liquid Haulage Pty Ltd v Fruehauf Australia Pty Ltd [1989] 2 Qd R 577

Mt Cotton Constructions Pty Ltd v Greer [2017] QCAT 11

Mt Cotton Constructions Pty Ltd v Greer (No 2) [2017] QCAT 98

Maggbury Pty Ltd v Hafele Australia Pty Ltd [2000] QCA 172

Norbis v Norbis (1986) 161 CLR 513

Olindaridge Pty Ltd & Wagner v Tracey [2015] QCATA 175

Pivovarova v Michelsen [2016] QCATA 45

QUYD Pty Ltd v Marvass Pty Ltd [2009] 1 Qd R 41

Robinson v Harman (1848) 154 ER 363

Salam & Anor v Henley Properties (QLD) Pty Ltd [2016] QCATA 98

Wharton v Duffy Constructions (QLD) Pty Ltd [2016] QCATA 12

This matter was heard and determined on the papers pursuant to s 32…

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Mt Cotton Constructions Pty Ltd v Greer [2020] QCATA 157
Case
[2020] QCATA 157
Decision Date

CaseChat Overview and Summary

In the matter of Mt Cotton Constructions Pty Ltd v Greer, the Queensland Civil and Administrative Tribunal (QCAT) was tasked with deciding whether the tribunal had wrongly exercised its discretion in awarding costs on an indemnity basis. The dispute involved the consequences of a rejected settlement offer under the provisions of s 105 of the Queensland Civil and Administrative Tribunal Act 2009 and r 86 of the QCAT Rules. The central issue before the tribunal was whether the lower tribunal had erred in its application of these provisions and whether the rejection of the offer was reasonable.

The court examined the principles governing costs in civil proceedings, particularly focusing on the impact of a Calderbank offer, which is an offer to settle on terms that include a promise to bear one’s own costs if the offer is not accepted. The tribunal had to assess the reasonableness of the rejecting party and determine if there had been a wrong exercise of discretion in awarding costs. The court considered whether the tribunal had appropriately balanced the relevant factors, including the merits of the case, the conduct of the parties, and the terms of the rejected offer.

The tribunal concluded that the ground of appeal concerning the costs order was not substantiated, as the lower tribunal had not erred in its application of the relevant provisions. The tribunal found that the rejection of the Calderbank offer was reasonable under the circumstances, and therefore, the costs order was appropriate. Consequently, the appeal was dismissed, and leave to appeal was refused. The tribunal directed the parties to submit written arguments on the costs of the appeal, to be considered in the context of any further costs orders arising from the proceedings.

In summary, the tribunal upheld the original costs order and declined to allow an appeal on the grounds presented. The court's decision reaffirmed the principles governing the assessment of costs in light of rejected settlement offers, emphasising the importance of the reasonableness of the rejecting party's conduct.

Orders

Orders of the court

1. Leave to appeal refused.

2. The parties must file in the Tribunal three (3) copies and exchange one (1) copy of written submissions (no longer than 4 pages) in respect of the question of costs of the appeal within 14 days of the date of these orders.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

Ground of appeal 5 is not made out. Conclusion MCC has failed to make out any of the grounds of appeal. It follows that leave to appeal is refused. Upon rehearing, and depending upon the outcome of the rehearing, any costs recovered by the Greers in respect of the proceedings below will no doubt be taken into consideration by the tribunal in making any further costs orders. Member Burke: I have had the benefit of reading the reasons provided by the Senior Member and agree with the conclusions reached and orders proposed.

Ratio Decidendi

Legal Principle Established

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