QBSA v Coastal Interior Linings Pty Ltd

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CITATION: Queensland Building Services Authority v Coastal Interior Linings Pty Ltd [2010] QCAT 165
PARTIES: Queensland Building Services Authority
v
Coastal Interior Linings Pty Ltd
APPLICATION NUMBER:   QD016-09     
MATTER TYPE: Occupational regulation matters
HEARING DATE:     6 April 2010
HEARD AT:  Brisbane
DECISION OF: Ms Clare Endicott
DELIVERED ON: 21 April 2010
DELIVERED AT:      Brisbane

ORDERS MADE:

Coastal Interior Linings Pty Ltd is ordered to pay to Queensland Building Services Authority the sum of $4,000 by way of penalty by 4.00pm on 10 May 2010
CATCHWORDS :  Penalty – breach of condition on licence – exceeding allowable annual turnover – section 91(3)(b) of the Queensland Building Services Authority Act 1991

APPEARANCES and REPRESENTATION (if any):

APPLICANT: 

Queensland Building Services Authority represented by Melanie Hanlon, in-house lawyer of Queensland Building Services Authority

RESPONDENT: 

Coastal Interior Linings Pty Ltd represented by Anne Challenger, Cronin Litigation Lawyers

REASONS FOR DECISION

  1. Coastal Interior Linings Pty Ltd (CIL) has held a licence issued by the Queensland Building Services Authority (the QBSA) since 1994.  The licence has been renewed annually and is current.
  2. At the time of licence renewal for the 2007/2008 year, documentation was submitted to the QBSA by the accountant for CIL which incorrectly represented that CIL’s net tangible assets were $156,001 when the actual amount of CIL’s net tangible assets was $391,033. 
  3. Based on the documentation provided by CIL’s accountant, the QBSA renewed the licence for 2007/2008 on 22 November 2007 and calculated CIL’s allowable annual turnover for 2007/2008 at $3,000,001. 
  4. CIL was notified by letter from the QBSA dated 22 November 2007 that it was a breach of a licence condition to exceed the allowable annual turnover by more than 10% during a licensing year without reference to the QBSA. 
  5. On 27 November 2008 the QBSA received documentation from the accountant of CIL which recorded that the actual annual turnover for 2007/2008 was $9,787,775. 
  6. QBSA commenced disciplinary proceedings in May 2009 in the Commercial and Consumer Tribunal against CIL for contravening a requirement imposed by the Queensland Building Services Authority Act 1991 and for contravening a condition of its licence.  CIL was unaware until the commencement of the disciplinary proceedings that it had exceeded the allowable annual turnover under its licence in 2007/2008. 
  7. From 1 December 2009 the Queensland Civil and Administrative Tribunal (the Tribunal) has replaced the Commercial and Consumer Tribunal on the commencement of the Queensland Civil and Administrative Tribunal Act 2009.
  8. Under section 256 of the Act, a pending proceeding (being a proceeding commenced in one of the Tribunals replaced by the 2009 Act but not heard by the replaced Tribunal prior to 1 December 2009) is taken to be a proceeding before the Queensland Civil and Administrative Tribunal.  Under section 271 of the Act, the Tribunal has the functions of the former Tribunal and can make a decision that the former Tribunal could have made in relation to the proceeding.
  9. The former Tribunal had the power under section 107(2) of the now repealed Commercial and Consumer Tribunal Act
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Details
Case
[2010] QCAT 165
Decision Date

CaseChat Overview and Summary

The case involved Coastal Interior Linings Pty Ltd, which was accused of breaching a condition on its licence by exceeding the allowable annual turnover as stipulated by section 91(3)(b) of the Queensland Building Services Authority Act 1991. The Queensland Building Services Authority (QBSA) brought this action against the company, seeking a penalty for the breach. The matter was heard in the Queensland Civil and Administrative Tribunal (QCAT).

The primary legal issue the court had to address was whether Coastal Interior Linings Pty Ltd had indeed breached the condition of its licence by exceeding the allowable annual turnover as defined by the legislation. This required the tribunal to interpret the statutory provisions and assess the company's turnover against the prescribed limit. Additionally, the tribunal had to determine the appropriate penalty under the Act if the breach was confirmed.

The tribunal found that Coastal Interior Linings Pty Ltd had exceeded the allowable annual turnover as defined by section 91(3)(b) of the Act. The company had failed to adhere to the turnover limit set by the QBSA, thereby contravening the terms of its licence. The tribunal imposed a penalty of $4,000 on the company, which was to be paid by 4.00pm on 10 May 2010. This penalty was considered appropriate given the breach of the licence condition and the statutory requirements.

The tribunal ordered Coastal Interior Linings Pty Ltd to pay the QBSA the sum of $4,000 by the specified deadline, reflecting its determination that the company had breached the licence condition and was liable for the penalty.

Orders

Orders of the court

Coastal Interior Linings Pty Ltd is ordered to pay to Queensland Building Services Authority the sum of $4,000 by way of penalty by 4.00pm on 10 May 2010

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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