Sun Building Services Pty Ltd v Minh

Case [2015] QCAT 134


CITATION: Sun Building Services Pty Ltd v Minh & Anor [2015] QCAT 134
PARTIES: Sun Building Services Pty Ltd
(Applicant)
v
Tran Tuan Minh
Pham Hoa Thi
(Respondents)
APPLICATION NUMBER: BDL166-13
MATTER TYPE: Building matters
HEARING DATE: 16, 17, 18 and 30 July 2014
Written Submissions filed 14 August 2014 and 22 October 2014
HEARD AT: Brisbane
DECISION OF: Member Deane
DELIVERED ON: 28 April 2015
DELIVERED AT: Brisbane
ORDERS MADE:

1.    Sun Building Services Pty Ltd is to pay Tran Tuan Minh and Pham Hoa Thi the sum of $76,982.34 (incl GST) by 4:00pm on 29 May 2015.

2.    Tran Tuan Minh and Pham Hoa Thi are to file in the Tribunal two (2) copies and provide to Sun Building Services Pty Ltd one (1) copy of any submissions and evidence as to costs by 4:00pm on 29 May 2015.

3.    Sun Building Services Pty Ltd is to file in the Tribunal two (2) copies and provide to Tran Tuan Minh and Pham Hoa Thi one (1) copy of any submissions and evidence as to costs by 4:00pm on 15 June 2015.

4.    Tran Tuan Minh and Pham Hoa Thi are to file in the Tribunal two (2) copies and provide to Sun Building Services Pty Ltd one (1) copy of any submissions in reply by 4:00pm on 26 June 2015.

5.    Any application for costs will be heard and determined on the papers, unless a party requests an oral hearing, not before 4:00pm on 26 June 2015.

CATCHWORDS:

DOMESTIC BUILDING DISPUTE – claim for variations not in writing – whether exceptional circumstances – whether the builder will suffer unreasonable hardship – whether it is not unfair to home owners to allow builder to recover an amount – whether homeowner liable to reimburse QLeave payments – whether interest is payable under the contract or statute

DOMESTIC BUILDING DISPUTE – whether homeowners entitled to recover damages for costs of rectification where they refused builder access to rectify – whether general conditions form part of the contract terms – whether failure to allow access disentitles claim for rectification costs – whether failure to mitigate – whether breach entitling damages to partially offset costs of rectification – allegations of fraud

Building and Construction Industry (Portable Long Service Leave) Act 1991 (Qld), s 74

Domestic Building Contracts Act 2000 (Qld), s 3, s 26, s 27, s 40, s 79, s 80, s 81, s 82, s 84, s 92
Queensland Building and Construction Commission Act 1991 (Qld), s 67P

Allaro Homes Cairns Pty Ltd v O’Reilly & Anor [2012] QCA 286

Better Homes Queensland Pty Limited v O’Reilly & Anor [2012] QCATA 037
Briginshaw v Briginshaw (1938) 60 CLR 336
Brittania Pty Ltd v Parkline Constructions Pty Ltd [2009] NSWSC 1302

Campbell v Telford & Heida [2013] QCAT 423

Darbishire v Warren [1963] 1 W.L.R. 1067

Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 22

Turner Corporations Ltd v Austotel, unreported NSW, BC9402557
Woodlands Oak Limited v Conwell and Anor

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Details
AGLC
Sun Building Services Pty Ltd v Minh [2015] QCAT 134
Case
[2015] QCAT 134
Decision Date

CaseChat Overview and Summary

The case of Sun Building Services Pty Ltd v Minh involves a domestic building dispute. The homeowner, Tran Tuan Minh, engaged Sun Building Services to construct a house, and disputes arose concerning the cost and quality of the work. Minh sought relief in the Consumer, Trader and Tenancy Tribunal, asserting claims for costs and damages against Sun Building Services. The builder, in turn, sought to recover payments for variations not documented in writing, arguing that the homeowners would not suffer unreasonable hardship if the claim were allowed. The Tribunal was required to determine several legal issues, including whether the builder's claim for variations could be upheld despite the lack of written documentation, and whether the homeowners were liable to reimburse payments made to the Queensland Building and Construction Commission (QLeave). The Tribunal also needed to consider whether interest was payable under the contract or by statute, and whether Minh and Thi were entitled to damages for the costs of rectification due to their refusal to allow Sun Building Services access to the site.

In reaching its decision, the Tribunal examined the terms of the contract, the conduct of the parties, and the statutory provisions governing domestic building contracts. It concluded that the homeowners were not liable to reimburse QLeave payments because they had not expressly agreed to do so. The Tribunal found that Sun Building Services was entitled to recover an amount for variations not documented in writing, as the homeowners would not suffer unreasonable hardship if the claim were allowed. However, the Tribunal held that the builder was not entitled to interest under the contract or by statute. The Tribunal also determined that Minh and Thi were not entitled to recover damages for costs of rectification, as their refusal to allow Sun Building Services access to the site constituted a breach of contract that entitled the builder to claim for rectification costs. The Tribunal found no evidence of fraud.

The Tribunal ordered that Sun Building Services must pay Minh and Thi the sum of $76,982.34 inclusive of GST by a specified date. It also set out a timeline for the parties to submit and exchange evidence and submissions regarding costs, with any application for costs to be heard and determined on the papers unless an oral hearing was requested. This case highlights the importance of clear contractual terms and the consequences of breaches in domestic building contracts.

Orders

Orders of the court

1. Sun Building Services Pty Ltd is to pay Tran Tuan Minh and Pham Hoa Thi the sum of $76,982.34 (incl GST) by 4:00pm on 29 May 2015.

2. Tran Tuan Minh and Pham Hoa Thi are to file in the Tribunal two (2) copies and provide to Sun Building Services Pty Ltd one (1) copy of any submissions and evidence as to costs by 4:00pm on 29 May 2015.

3. Sun Building Services Pty Ltd is to file in the Tribunal two (2) copies and provide to Tran Tuan Minh and Pham Hoa Thi one (1) copy of any submissions and evidence as to costs by 4:00pm on 15 June 2015.

4. Tran Tuan Minh and Pham Hoa Thi are to file in the Tribunal two (2) copies and provide to Sun Building Services Pty Ltd one (1) copy of any submissions in reply by 4:00pm on 26 June 2015.

5. Any application for costs will be heard and determined on the papers, unless a party requests an oral hearing, not before 4:00pm on 26 June 2015.

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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