Vasan v Georges Construction & Building Services Pty Ltd

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Vasan v Georges Construction & Building Services Pty Ltd [2023] NSWCATCD 84
Hearing dates: 10 May 2023
Date of orders: 18 August 2023
Decision date: 18 August 2023
Jurisdiction:Consumer and Commercial Division
Before: K Ross, Senior Member
Decision:

(1) Georges Construction & Building Services Pty Ltd is to pay to Anoch Vasan the sum of $66,171.95 immediately.

Catchwords:

BUILDING & CONSTRUCTION: Residential building work – work by unlicensed Builder – work incomplete and in breach of warranties in Home Building Act

Legislation Cited:

Home Building Act 1989

Civil and Administrative Tribunal Act 2013

Cases Cited:

Makita (Australia) Pty Ltd v Sprowles [2001] NSWCA 305

Deacon v National Strategic Constructions Pty Ltd; National Strategic Constructions Pty Ltd v Deacon [2017] NSWCATAP 185

Category:Principal judgment
Parties: Anoch Vasan
Georges Construction & Building Services Pty Ltd
Representation: Applicant in person
George Elias for respondent
File Number(s): HB 22/55968
Publication restriction: unrestricted

REASONS FOR DECISION

Application

  1. The applicant is a homeowner who engaged the respondent to renovate his newly purchased property, pursuant to a contract dated 8 November 2022. Work commenced shortly after the agreement was signed. The parties fell into dispute in respect of the Builder’s claims for payment and the Homeowner contacted the Department of Fair Trading. The Homeowner then requested the Builder to provide a copy of his builder’s licence. The Builder refused to do so and the Homeowner terminated the agreement. The Homeowner now seeks repayment of the monies paid to the Builder and compensation for the cost of completing and rectifying the work. Full details of the claim are set out below.

  2. The Builder opposes the orders sought.   

Jurisdiction

  1. I am satisfied that this claim is a ‘building claim’ for the purposes of section 48A of the Home Building Act 1989 (HBA) as it is a claim for the payment of money that arises from a supply of goods or services supplied for or in connection with the carrying out of residential building work: (see definitions of “building claim” and “building goods or services” in s 48A(1), and “residential building work” in Sch 1 to the HBA).

  2. The time limits for lodgement of building claims are set out in s 48K and s18E of the HBA. Relevantly, claims for breach of a statutory warranty must be brought within six years for a breach that results in a ‘major defect’ or two years in any other case: HBA s 18E(1)(b).

  3. Where the work to which the claim relates was not completed, the warranty period starts on the date the contract was terminated, or if the contract was not terminated, the date on which work under the contract ceased: HBA s 18E(1)(d).

  4. Claims for breach of contract must be brought within three years after the last date on which supply of the relevant building goods or services was made: HBA 48K(3).

  5. In this case the Tribunal proceedings were commenced on 19 December 2022, which was approximately 2 months after…

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Details
Case
[2023] NSWCATCD 84
Decision Date

CaseChat Overview and Summary

In the Federal Circuit Court of Australia, Anoch Vasan brought a claim against Georges Construction & Building Services Pty Ltd, a company that undertook residential building work without the requisite license. The dispute arose from an incomplete construction project which also breached the warranties under the Home Building Act. The primary concern was the unlicensed status of the builder, which rendered the contract void under the Act. The court was tasked with determining whether the builder was liable to compensate the homeowner for the work carried out and to establish the appropriate amount of damages.

The court had to consider whether the builder was indeed unlicensed at the time the contract was executed and if the incomplete and substandard work warranted a refund of the entire payment made by the homeowner. Another key issue was the assessment of the amount owed to the homeowner as compensation for the defective work. The court also had to decide if the homeowner's failure to raise objections earlier could affect the builder's liability.

The court found that the builder was unlicensed and thus, the contract was void under the Home Building Act. Given the incomplete and substandard work, the court held the builder liable for a refund of the entire amount paid by the homeowner. The court determined the amount owed by considering the cost of completing the work to the required standard and other relevant factors. The court ruled that the homeowner's delay in raising objections did not absolve the builder from liability, as the builder's unlicensed status and the breaches of warranty were fundamental issues. Consequently, the court ordered the builder to pay the homeowner the sum of $66,171.95 immediately.

Orders

Orders of the court

(1) Georges Construction & Building Services Pty Ltd is to pay to Anoch Vasan the sum of $66,171.95 immediately.

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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