Stevenson v Ashton

Case [2018] NSWCATCD 25


Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Stevenson v Ashton [2018] NSWCATCD 25
Hearing dates: 2 November 2017, 3 November 2017 and 8 February 2018
Date of orders: 28 June 2018
Decision date: 28 June 2018
Jurisdiction:Consumer and Commercial Division
Before: D A C Robertson, Senior Member
Decision:

(1) The respondent is to pay the applicant the sum of $42,317.77 immediately.

 

(2) Either party may file written submissions within 14 days seeking an order in relation to the costs of the proceedings.

 

(3) If either party files submissions in accordance with order (2), the other party may file submissions in response within a further 14 days.

 

(4) Any submissions filed in accordance with orders (2) and (3) must address the question whether the question of costs should be determined on the papers and without a hearing pursuant to s50(2) of the Civil and Administrative Tribunal Act.

 (5) If no submissions are filed in accordance with orders (2) and (3), the respondent is to pay the applicant’s costs of the proceedings as agreed or assessed.
Catchwords: BUILDING AND CONSTRUCTION – Home Building – successor in title seeking compensation for allegedly defective work from owner-builder – when work was complete – defective work – whether major defect – whether defect in a major element – what constitutes waterproofing – cost of rectification – whether work order should be made in respect of defective work carried out pursuant to owner-builder permit
WORDS AND PHRASES – “major defect” - “major element” - “waterproofing”
Legislation Cited: Civil and Administrative Tribunal Rules 2014 (NSW)
Home Building Act 1989 (NSW) ss 3B, 18B, 18C, 18E, 48K, 48MA, 48O
Home Building Amendment Act 2014 (NSW)
Cases Cited: Allianz v Waterbrook [2009] NSWCA 224
Jones v Dunkel (1959) 101 CLR 298
Leung v Alexakis [2018] NSWCATAP 11
Sugar Australia Ltd v Conneq [2011] NSWSC 805
Texts Cited: Shorter Oxford English Dictionary
Macquarie Dictionary
Category:Principal judgment
Parties: Phillip Stevenson (Applicant)
Jacqueline Ashton (Respondent)
Representation:

Counsel:
T Davie (Applicant)
M McMahon (Respondent)

  Solicitors:
Chambers Russell Lawyers (Applicant)
Hughes & Taylor (Respondent)
File Number(s): HB 16/50587

REASONS FOR DECISION

Introduction

  1. In 2012 the respondent was the registered proprietor of a terrace house in Darlinghurst, apparently constructed in the late 19th century. On 7 June 2013 the respondent obtained development consent to undertake additions and renovations at the property. On 7 August 2013 the respondent obtained an owner-builder permit under the Home Building Act 1989 (NSW) to undertake the work the subject of the development consent.

  2. On 14 August 2013 the respondent obtained a construction certificate to carry out the work the subject of the development consent.

  3. The work involved was described in the Application for Development Consent as:

“Demolition of front wall with asbestos and rear walls on ground floor. Extension of rear living room and kitchen to boundary. New wall to front of house. Extension to rear on first floor and replacement of rear skillion roof. New dormer and rear roof extension to attic (second floor).

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Details
AGLC
Stevenson v Ashton [2018] NSWCATCD 25
Case
[2018] NSWCATCD 25
Decision Date

CaseChat Overview and Summary

In the matter of Stevenson v Ashton, the applicant, a successor in title of a residential property, sought compensation from the respondent, the original owner-builder, for allegedly defective work. The dispute centred on the condition of the property at the time of completion, specifically regarding the waterproofing system, and whether the defects amounted to a major defect in a major element. The applicant argued that the work was deficient and required rectification, which the respondent had failed to address properly. The matter was heard in the Civil and Administrative Tribunal of New South Wales.

The legal issues before the tribunal included defining what constitutes a "major defect" and a "major element" in the context of residential building works. Additionally, the tribunal had to determine whether the waterproofing system installed by the respondent met industry standards and if the cost of rectification was reasonable. The applicant contended that the work order should be made in respect of the defective work carried out under the owner-builder permit.

The tribunal found that the defects identified by the applicant were indeed major defects in major elements of the building. The waterproofing system was inadequate, leading to water ingress and other issues, which the tribunal deemed unacceptable. The tribunal held that the respondent was responsible for the defective work and ordered the respondent to pay the applicant $42,317.77 immediately to cover the cost of rectification. The tribunal also set out a process for either party to seek an order in relation to the costs of the proceedings, with specific timelines and considerations for determining costs. If no submissions were filed, the respondent would pay the applicant’s costs as agreed or assessed.

Orders

Orders of the court

(1) The respondent is to pay the applicant the sum of $42,317.77 immediately.

(2) Either party may file written submissions within 14 days seeking an order in relation to the costs of the proceedings.

(3) If either party files submissions in accordance with order (2), the other party may file submissions in response within a further 14 days.

(4) Any submissions filed in accordance with orders (2) and (3) must address the question whether the question of costs should be determined on the papers and without a hearing pursuant to s50(2) of the Civil and Administrative Tribunal Act.

(5) If no submissions are filed in accordance with orders (2) and (3), the respondent is to pay the applicant’s costs of the proceedings as agreed or assessed.

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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