Verma v Reynolds (No 2)

In Verma v Reynolds (No 2), the Australian Capital Territory Administrative Tribunal (ACAT) dealt with a continuation of a dispute between homeowners, the applicants, and a builder, the respondent, concerning the quality of renovation work and the respondent's licensing and insurance status. This matter follows previous decisions in Verma & Anor v Reynolds, [2018] ACAT 89 and [2019] ACAT 4. The Tribunal had to determine whether the respondent's non-compliance with previous orders, refusal to participate in the proceedings, and reliance on a non-lawyer representative constituted sufficient grounds to award the applicants damages and issue an order for immediate payment.

The primary legal issue before the Tribunal was whether the respondent's refusal to participate in the proceedings, despite having ample time to prepare and having been warned of the consequences, warranted the issuance of a default judgment in favour of the applicants. The Tribunal also had to consider the implications of the respondent's reliance on a non-lawyer representative who had been previously removed from the case due to obstructive conduct.

The Tribunal found that the respondent's actions, including his refusal to participate in the hearing, reliance on a non-competent representative, and belligerent conduct, justified the issuance of a default judgment. The Tribunal emphasised the importance of timeliness and efficiency in the administration of justice and applied the principles from Doughty-Cowell (Victoria Police) v Kyriazis [2018] VSCA 216 concerning the conscious decision of a party to refuse participation in a hearing. The Tribunal concluded that the respondent's conduct demonstrated a deliberate refusal to engage with the process, and therefore, the applicants had adduced sufficient evidence to constitute a prima facie case.

The Tribunal ordered the respondent to pay the applicants $25,161.99 immediately, reflecting the consequences of the respondent's actions and the need to uphold the integrity of the judicial process.