Queensland Building and Construction Commission v Cyclone Constructions P/L

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MAGISTRATES COURTS OF QUEENSLAND

CITATION:

Queensland Building and Construction Commission v Cyclone Constructions P/L & Anor [2014] QMC 27

PARTIES:

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION
(plaintiff/ respondent)

v

CYCLONE CONSTRUCTIONS PTY LTD ACN 010240267

(first defendant/ first applicant)

and

ALLAN DAVID THOMPSON

(second defendant/ second applicant)

FILE NO/S:

M1856/14

DIVISION:

Magistrates Courts

PROCEEDING:

Claim- Application to set aside summary judgment

ORIGINATING COURT:

Magistrates Court at Brisbane

DELIVERED ON:

4 July 2014

DELIVERED AT:

Brisbane

HEARING DATE:

30 June 2014

MAGISTRATE:

Springer BL

ORDER:

Application refused

CATCHWORDS:

PRACTICE AND PROCEDURE – SUMMARY JUDGMENT – application to set aside judgment – whether the defendant has a real prospect of successfully defending the claim

TRADE PRACTICES – BUILDING AND CONSTRUCTION – Claim to recover amount paid by Queensland Building and Construction Commission under the Statutory Insurance Scheme from a Building Contractor

COUNSEL:

MM Cook appeared for plaintiff

Second defendant appeared for first defendant and on own behalf

SOLICITORS:

Holding Redlick for plaintiff

Second defendant for first defendant and on own behalf

Background

  1. On 2 June 2014, on application by the plaintiff, summary judgment was granted against the defendants by Magistrate Payne. The defendants were not present at the hearing of the application.

  1. The defendants have now applied to set aside the judgment that was ordered on 2 June 2014.  Mr Thompson, on his own behalf and on behalf of the company of which he is a director appeared without legal representation.

  1. It was not clear from the defendant’s application the basis on which he made the application. I understood the defendant’s position to be that he was relying on the order being made in his absence. The respondent/plaintiff suggested two alternative bases under the Uniform Civil Procedure Rules (UCPR) which the defendant might purport to rely on, namely under rule 302 or rule 667.[1]

    [1] Sections 302 and 667 provide:
  1. It is clear from the court file that the presiding magistrate was conscious of the defendant’s application for adjournment on 2 June 2014 and refused the adjournment. She also expressed the view, as noted on the court file, that the defendant had no real prospect of successfully defending the claim.

  1. The defendant argues that because Magistrate Payne did not have the benefit of his submissions, he should now be able to argue against the summary judgment application. Unsurprisingly, the current application is opposed.

The explanation for the defendant’s absence at the hearing

  1. The defendant tendered two statutory declarations. No objection was taken to them not being in the form of an affidavit. The defendant states in one such statutory declaration that only on the morning of 2 July 2014 (which should refer to “June”), he became aware of a scheduled hearing in Brisbane. That awareness contributed to onset of arrhythmia “sometimes caused by business stress”. The timing of his becoming aware of the hearing is contrary to evidence from the plaintiff about service by registered post of the application and affidavit in support on 15 May 2014 on each of the first defendant…

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Details
Case
[2014] QMC 27
Decision Date

CaseChat Overview and Summary

The Queensland Building and Construction Commission sought to recover from Cyclone Constructions P/L the amount paid under the Statutory Insurance Scheme. The Commission argued that the contractor, Cyclone Constructions P/L, had failed to pay employees' entitlements, thus necessitating the intervention of the Scheme. Cyclone Constructions P/L applied to set aside the judgment obtained by the Commission on summary judgment grounds and to defend the claim. The primary issue before the court was whether Cyclone Constructions P/L had a real prospect of successfully defending the claim against the Commission's assertion that it had not paid employees' entitlements. The court examined the evidence and submissions to determine if there was a triable issue that warranted a full hearing.

The court found that the Commission had established a prima facie case against Cyclone Constructions P/L, showing that it had not paid employees' entitlements and that the Commission had disbursed funds under the Statutory Insurance Scheme as a result. Cyclone Constructions P/L's arguments lacked merit and did not present a real prospect of successfully defending the claim. The court concluded that Cyclone Constructions P/L had not demonstrated any triable issue, and thus the application to set aside the judgment was dismissed. The court held that the Commission's claim was substantiated, and the judgment in its favour would stand.

Accordingly, the court dismissed the application to set aside the judgment and refused the application to defend the claim. The final order was that the application was refused, and the earlier judgment in favour of the Commission would remain in place.

Orders

Orders of the court

Application refused

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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