Tudor Developments Pty Ltd v Makeig

Case [2008] NSWCA 263


NEW SOUTH WALES COURT OF APPEAL

CITATION:
TUDOR DEVELOPMENTS PTY LTD v MAKEIG [2008] NSWCA 263

FILE NUMBER(S):
40783/07

HEARING DATE(S):
12 August 2008

JUDGMENT DATE:
21 October 2008

PARTIES:
Tudor Developments Pty Ltd - Appellant
Kaye Janeice Makeig - Respondent

JUDGMENT OF:
Beazley JA Basten JA Handley AJA   

LOWER COURT JURISDICTION:
Supreme Court

LOWER COURT FILE NUMBER(S):
SC 3330/04

LOWER COURT JUDICIAL OFFICER:
Young CJ in Eq

LOWER COURT DATE OF DECISION:
9 October 2007;

LOWER COURT MEDIUM NEUTRAL CITATION:
[<i>Tudor Developments Pty Ltd v Makeig</i>] [2007] NSWSC 1116

COUNSEL:
J Agius SC/A Canceri - Appellant
G A Sirtes - Respondent

SOLICITORS:
James Lahood & Associates - Appellant
Somerville & Co - Respondent

CATCHWORDS:
PRACTICE & PROCEDURE – separate question determined – where no evidence before primary judge – whether Court should rely on facts asserted in statement of claim and admitted by respondent
BUILDING AND CONSTRUCTION – contracts for sale of land subject to residential building work – prohibition on contracts without certificate of insurance – purpose of prohibition – purchaser protection – consequences of contravening s 96A(1) – penalties – power to avoid – whether Part 6 of [<i>Home Building Act</i>] 1989 (NSW) can be excluded – whether general law principles of estoppel operate over s 96A(3) – [<i>Home Building Act</i>] 1989 (NSW) s 96A
CONTRACTS – statutory power to avoid contract – where failure to provide certificate of insurance for contract of sale of land subject to residential building work – scope of power – [<i>Home Building Act</i>] 1989 (NSW) s 96A
EQUITY – estoppel – election – whether estoppel qualifies power to avoid contract under s 96A of [<i>Home Building Act</i>] 1989 (NSW) – relationship between estoppel and election
STATUTORY INTERPRETATION – purposive construction – statutory language – legislative history – consequences of failure to comply with prohibition on contracts for sale of land subject to residential building work without providing certificate of insurance – whether general law principles of estoppel operate over s 96A(3) – whether precluding reliance on estoppel unfair – consistency of s 96A(3) with s 103D – absence of protection against harsh consequences – predecessors to ss 96A and 103D – legislative history of builders’ insurance for residential building work – economic sanctions for non-compliance with insurance requirements – purpose of insurance schemes – purchaser protection – judicial consideration of similar legislation to interpret s 96A of [<i>Home Building Act</i>] 1989 (NSW) – [<i>Home Building Act</i>] 1989 (NSW) ss 96A, 103D, Part 6 – [<i>Builders Licensing Act</i>] 1971 (NSW) – [<i>Building Services Corporation Act</i>] 1989 (NSW) ss 94, 95, 97

LEGISLATION CITED:
[<i>Builders Licensing Act</i>] 1971 (NSW), ss 4, 34
[<i>Building Services Corporation Act</i>] 1989 (NSW), ss 91, 92, 93, 94, 95, 96, 97
[<i>Home Building Act</i>] 1989 (NSW), ss 3A, 90, 92, 94, 96A, 99, 103D
[<i>Home Building Amendment Act</i>] 1999 (NSW), Schedule 1 [13]
[<i>Home Building Amendment Act</i>] 2000 (NSW), Schedule 1 [3], [4]
[<i>Home Building Legislation Amendment Act</i>] 2001 (NSW), Schedule 6 [18]
[<i>Home Building Amendment (Insurance) Act</i>]…

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Tudor Developments Pty Ltd v Makeig [2008] NSWCA 263
Case
[2008] NSWCA 263
Decision Date

CaseChat Overview and Summary

The appeal concerned a dispute between Tudor Developments Pty Ltd (the appellant) and Makeig (the respondent) regarding a contract for the sale of land subject to residential building work. The central issue was whether the respondent could avoid the contract due to the appellant's failure to provide a certificate of insurance as required by section 96A(1) of the *Home Building Act 1989* (NSW). The Court of Appeal of New South Wales was required to determine whether general law principles of estoppel could operate to preclude the respondent from exercising the statutory power to avoid the contract under section 96A(3) of the Act.

The court considered the purpose of section 96A, which is to protect purchasers by ensuring they receive a certificate of insurance for residential building work. The legal issues revolved around the scope of the statutory power to avoid a contract for non-compliance with this requirement and whether this power could be qualified by equitable principles such as estoppel or election. The court also examined the relationship between section 96A(3) and section 103D of the *Home Building Act 1989* (NSW), as well as the legislative history of builders' insurance requirements in New South Wales.

In its reasoning, the court adopted a purposive approach to statutory interpretation, considering the legislative history and the consequences of non-compliance. It held that the statutory prohibition and the power to avoid the contract were designed for purchaser protection and that general law principles of estoppel could not operate to override or qualify the express statutory power granted by section 96A(3). The court found that allowing estoppel to preclude reliance on the statutory power would undermine the protective purpose of the legislation. The appeal was dismissed with costs.

Orders

Orders of the court

Appeal dismissed with costs.

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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