Piastrino v Seascape Constructions Pty Ltd

Case [2022] VSC 202


IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL COURT

TECHNOLOGY, ENGINEERING & CONSTRUCTION LIST

S ECI 2021 02658

MELINA KATHY PIASTRINO & ANOR Plaintiffs
v
SEASCAPE CONSTRUCTIONS PTY LTD & ANOR Defendants

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JUDGE:

DELANY J

WHERE HELD:

Melbourne

DATE OF HEARING:

27 January and 2 February 2022

DATE OF JUDGMENT:

26 April 2022

CASE MAY BE CITED AS:

Piastrino v Seascape Constructions Pty Ltd

MEDIUM NEUTRAL CITATION:

[2022] VSC 202

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ADMINISTRATIVE LAW – Building and construction – Judicial review – Adjudication under Part 3 Division 2 of the Building Industry Security of Payment Act 2002 (Vic) – Application for certiorari – Whether contract is excluded from Building Industry Security of Payment Act 2002 (Vic) by s 7(2)(b) of the Act – Whether contract a 'domestic building contract' for carrying out of 'domestic building work' for purposes of Domestic Building Contracts Act 1995 (Vic) – Whether owners in the 'business of building residences' – Single contract for construction of four apartments a hair salon and a car stacker – No compliance by builder with s 12 of Domestic Building Contracts Act 1995 (Vic) – Dominant character of work domestic building work – Contract not excluded from application of Building Industry Security of Payment Act 2002 (Vic) – Building Industry Security of Payment Act 2002 (Vic) s 7 applied – Domestic Building Contracts Act 1995 (Vic) ss 5, 6, 12 applied – Ian Street Developer v Arrow International (2018) 54 VR 721 applied – Winslow Constructions Pty Ltd v Mt Holden Estates (2004) 10 VR 435, H Buildings v Owners Corporation [2017] VSC 802, Bayside Design & Construct Pty Ltd v Kanbur [2020] VCC 691 referred to.

STATUTORY CONSTRUCTION – Building Industry Security of Payment Act 2002 (Vic) s 7(2)(b) – Definitions incorporated from Domestic Building Contracts Act 1995 (Vic) – Effect of Planning and Environment Act 1987 (Vic) and Victorian Planning Provisions on application of s 5(1)(e)(i) of the Domestic Building Contracts Act 1995 (Vic) – Whether work to a commercial part of mixed-use development is ‘associated work’ for purpose of s 5 of the Domestic Building Contracts Act 1995 (Vic) – Whether contract for mixed-use development is ‘domestic building contract’ for carrying out domestic building work if domestic building work and other work not separately identified as required by s 12 of the Act – Kelly v The Queen (2004) 218 CLR 216 applied – Stephens v Cameron [2021] VSCA 208, Kane Constructions Pty Ltd v Sopov [2005] VSC 237, Burbank Australia Pty Ltd v Owners Corporation PS447493 [2015] VSC 160, Shell Refining (Australia) Pty Limited v A J Mayr Engineering Pty Limited [2006] NSWSC 94, Watpac Constructions Pty Ltd v Collins & Graham Mechanical Pty Ltd [2020] VSC 414, Federal Commissioner of Taxation v Consolidated Media Holdings Ltd (2012) 250 CLR 503, K & S Lake City Freighters Pty Ltd v Gordon & Gotch Pty Ltd (1985) 157 CLR 309, Deal v Father Pius Kodakkathanath

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Piastrino v Seascape Constructions Pty Ltd [2022] VSC 202
Case
[2022] VSC 202
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CaseChat Overview and Summary

Piastrino v Seascape Constructions Pty Ltd involved a dispute between the applicant, Piastrino, and the respondent, Seascape Constructions Pty Ltd, concerning the applicability of the Building Industry Security of Payment Act 2002 (Vic) to a construction contract. The case came before the Supreme Court of Victoria, which was required to determine whether the contract was excluded from the operation of the Building Industry Security of Payment Act 2002 (Vic) by section 7(2)(b) of the Act, and whether it constituted a 'domestic building contract' for carrying out of 'domestic building work' under the Domestic Building Contracts Act 1995 (Vic). The crux of the dispute hinged on whether the owners were in the 'business of building residences', particularly in relation to a single contract for the construction of four apartments, a hair salon, and a car stacker.

The court's task was to interpret the statutory provisions, specifically sections 5, 6, and 12 of the Domestic Building Contracts Act 1995 (Vic) and section 7(2)(b) of the Building Industry Security of Payment Act 2002 (Vic). The court also had to consider the Planning and Environment Act 1987 (Vic) and the Victorian Planning Provisions to ascertain whether work to a commercial part of a mixed-use development constituted 'associated work'. Furthermore, the court needed to examine whether a contract for a mixed-use development qualified as a 'domestic building contract' for carrying out domestic building work if the domestic building work and other work were not separately identified as required by section 12 of the Domestic Building Contracts Act 1995 (Vic).

The court found that the dominant character of the work was domestic building work, and the owners were not in the business of building residences. The contract was not excluded from the application of the Building Industry Security of Payment Act 2002 (Vic). The court applied the provisions of the Domestic Building Contracts Act 1995 (Vic) and held that the mixed-use development contract did not constitute a 'domestic building contract'. The court referred to several precedents, including Ian Street Developer v Arrow International, Winslow Constructions Pty Ltd v Mt Holden Estates, H Buildings v Owners Corporation, and Bayside Design & Construct Pty Ltd v Kanbur. The court concluded that the Building Industry Security of Payment Act 2002 (Vic) applied to the contract, and the application for certiorari was dismissed.

The court ordered that the application be dismissed, and no orders for costs were made.

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