Queensland Building and Construction Commission v Turcinovic

Case

[2017] QCA 77

28 April 2017


Details
AGLC Case Decision Date
Queensland Building and Construction Commission v Turcinovic [2017] QCA 77 [2017] QCA 77 28 April 2017

CaseChat Overview and Summary

The appeal was brought by the Queensland Building and Construction Commission against Turcinovic, a building contractor, over the issue of whether payments made by the Commission to Turcinovic were covered by an insurance scheme. The Commission sought summary judgment to recover $214,464.55, which it had paid to Turcinovic under an insurance policy for residential construction work. Turcinovic argued that the payments were not covered by the insurance scheme, and thus, the Commission was not entitled to summary judgment. The primary judge refused the Commission's application for summary judgment, leading to the appeal by the Commission.

The central legal issue in the appeal was whether the payments made by the Commission to Turcinovic were indeed payments under the insurance scheme as defined by the Queensland Building and Construction Commission Act 1991. The court had to interpret the phrase "payment on a claim under the insurance scheme" and determine whether the reasonableness of a payment was a factor in assessing the liability of the building contractor. Additionally, the court needed to decide if the judge had erred in refusing summary judgment by incorrectly applying the statutory provisions.

The court found that the payments in question were indeed made under the insurance scheme as they related to claims under the insurance policy. The interpretation of "payment on a claim under the insurance scheme" did not include the assessment of the reasonableness of the payment as a ground for liability under section 71(1) of the Act. Consequently, the court concluded that the primary judge had erred in refusing summary judgment. The appeal was allowed, and judgment was entered in favour of the Commission for the amount of $214,464.55 plus interest, along with an order for costs.
Details

Areas of Law

  • Construction Law

  • Insurance Law

Legal Concepts

  • Summary Judgment

  • Interpretation of Statute

  • Costs