Thomas v Reliance Building Services (Aust) Pty Ltd ACN 097 397 549 (Civil Dispute)

The case involves Thomas, an owner of a unit in a Kaleen apartment complex, who is suing Reliance Building Services (Aust) Pty Ltd (Reliance) for damages. Thomas, who operates his unit as an Airbnb listing, claims that waterproofing maintenance work on his balcony, undertaken by Reliance, caused him to lose income due to delays in the project. The original timeline for the commencement of the work was November 2022, but it was delayed until about 22 February 2023. Thomas alleges that the work impacted the use of his unit's balcony and living room, which were key features of his Airbnb listing. The work was expected to be completed in two weeks, but it was not finished until about mid-September 2023. Reliance argues that the work was completed by 1 May 2023 and was fit for purpose, and that any delays were due to factors beyond its control.

The central legal issues in the case were whether Reliance was liable for the delays in the waterproofing maintenance work and the resultant lost income for Thomas. The court had to determine if Reliance breached any contractual obligations or was negligent in the execution of the work, leading to the delays and the consequential financial loss to Thomas. Additionally, the court needed to assess whether the delays and their impact on Thomas's income were directly attributable to Reliance or if they were due to other factors beyond its control, such as weather conditions or actions of other parties involved in the project.

The court analysed the timeline of events, the contractual obligations of the parties, and the evidence presented regarding the reasons for the delays. It found that the completion date for the work was not clearly communicated to Thomas, and despite his efforts to follow up, the actual completion date remained uncertain. The court also considered the terms of the agreement between Peak Consulting and Reliance, and the extent to which Reliance could be held responsible for the delays. Ultimately, the court ruled that Reliance was liable for the delays and the resultant lost income to Thomas. The court found that Reliance did not adequately communicate the completion date and did not mitigate the delays effectively, which directly impacted Thomas's ability to reactivate his Airbnb listing.

The court ordered Reliance to compensate Thomas for the lost income due to the delays in the waterproofing maintenance work. The exact amount of damages was to be determined based on the evidence provided by Thomas regarding his lost Airbnb income during the period of delay. The court also noted that proceedings against other parties involved in the project, such as the Owners Corporation, had been resolved separately. This decision highlights the importance of clear communication and timely completion of contractual obligations in construction projects, particularly when they impact the ability of property owners to earn income from their properties.