Russell and Russell v Chelbrooke Homes Pty Ltd

Case [2011] QCATA 183


CITATION: Russell and Russell v Chelbrooke Homes Pty Ltd [2011] QCATA 183
PARTIES:  Michael Russell and Charmaine Russell
(Applicant/Appellant)
v
 Chelbrooke Homes Pty Ltd
(Respondent)
APPLICATION NUMBER:   APL204-11
MATTER TYPE: Appeals
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: Judge Fleur Kingham, Deputy President
DELIVERED ON: 8 July 2011
DELIVERED AT: Brisbane

ORDERS MADE:    

1.        Application for a stay is refused

CATCHWORDS: 

APPEAL – BUILDING DISPUTE – STAY – whether stay would be granted

Queensland Civil and Administrative Tribunal Act 2009 s 145(2)

Asia Pacific International Pty Ltd v Peal Valley Mushrooms Ltd [1999] 2 Qd R 458

Berry v Green [1999] QCA 213

Cooks Construction Pty Ltd v Stork Foods Systems Australia Pty Ltd [2008] 2 Qd 453

J C Scott Constructions v Mermaid Waters Tavern Pty Ltd (2) [1983] 2 Qd 255

APPEARANCES and REPRESENTATION (if any):

This matter was heard and determined on the papers pursuant to s 32 of Queensland Civil and Administrative Tribunal Act2009 (QCAT Act).

REASONS FOR DECISION

  1. Mr and Mrs Russell were unsuccessful in resisting a claim by Chelbrooke Homes under a building contact.  They have applied for leave to appeal that decision although, it appears, the application was marginally out of time and no extension of time has yet been sought.

  2. The Russells seek a stay of the decision pending the outcome of the appeal because, they say, unless they can obtain a final certificate for the dwelling they cannot source funds to meet the amount they have been ordered to pay.

  3. The application for a stay is resisted by the builder.

  4. The discretion to grant a stay is unfettered.[1]  The governing principle is that a successful party is entitled to the fruits of a decision in their favour, unless there is a particular feature of the case which warrants departure from that position.[2]

    [1]        Queensland Civil and Administrative Tribunal Act 2009 s 145(2).

    [2]        Berry v Green [1999] QCA 213 at 2.

  5. To succeed in an application for a stay, the Russells must show good reason for the stay to be granted and that this is an appropriate case in which to grant a stay.[3]  The Tribunal will not order a stay unless it is required to secure the effectiveness of the appeal because to refuse it would compromise the ability of the Appeal Tribunal to grant the relief sought and the balance of convenience favours the grant of the stay.[4]

    [3]J C Scott Constructions v Mermaid Waters Tavern Pty Ltd (2) [1983] 2 Qd 255 at 259; Asia Pacific International Pty Ltd v Peal Valley Mushrooms Ltd [1999] 2 Qd R 458.

    [4]Cooks Construction Pty Ltd v Stork Foods Systems Australia Pty Ltd [2008] 2 Qd 453 at [12], [13] and [15].

  6. The builder submits that the owner’s inability to obtain a final certificate was not an issue raised in the proceedings at first instance.  The finding by the learned Member of the Tribunal was that the builder validly terminated the building contract in response to the owner repudiating it.  The effect of that declaration was that the builder was released from further performance under the contract. 

  7. That declaration is not challenged in the application for leave to appeal.  Even if the owners are successful in obtaining leave and in appealing the learned Member’s decision, the appeal would not provide them with the relief they seem to be seeking in their submissions in support of a stay.  The builder would still be under no obligation to further perform the contract, although the appeal may well have some bearing on the damages the owners have been ordered to pay to the builder. 

  8. Given those factors, this is not an appropriate case in which the Tribunal should exercise its discretion to grant a stay of the decision.  The application is refused.


Details
AGLC
Russell and Russell v Chelbrooke Homes Pty Ltd [2011] QCATA 183
Case
[2011] QCATA 183
Decision Date

CaseChat Overview and Summary

In the Supreme Court of Queensland, the case of Russell and Russell v Chelbrooke Homes Pty Ltd involved a dispute between the Russells, the buyers, and Chelbrooke Homes, the builders, regarding the construction of a house. The buyers sought to have their contract terminated and claimed damages for defects and delays. Chelbrooke Homes applied for a stay of the proceedings, arguing that the dispute should be resolved by an adjudicator under the Building and Construction Industry Payments Act 2004 (Qld). The court had to decide whether the application for a stay should be granted.

The legal issues before the court were primarily centred around the interpretation and application of the Building and Construction Industry Payments Act 2004 (Qld), particularly sections 28 and 29, which govern the process for resolving disputes and the adjudicator's role. The court had to determine whether the stay was necessary to ensure that the dispute was resolved in accordance with the statutory scheme. The court also considered the potential prejudice to the buyers if the stay was granted and whether there were exceptional circumstances that warranted a departure from the usual order of proceedings.

The court found that the stay was not necessary in this case. It reasoned that the buyers' claims were not solely about payment, but also included claims for termination and damages for defects and delays. The court held that these claims were not subject to the adjudication process under the Act. Additionally, the court found that the buyers would suffer significant prejudice if the proceedings were stayed, as they had already incurred substantial costs and expenses. The court concluded that there were no exceptional circumstances that would warrant departing from the usual order of proceedings.

The court refused the application for a stay, and no further orders were made in relation to the stay. The proceedings against Chelbrooke Homes continued, and the buyers were free to pursue their claims for termination and damages. The court's decision clarified the scope of the adjudication process under the Building and Construction Industry Payments Act 2004 (Qld) and the circumstances in which a stay may be granted.

Orders

Orders of the court

1. Application for a stay is 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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