[2024] WASAT 142
General information, not legal advice.
State Administrative Tribunal (WA)
2025-05-05
Original judgment source is linked above.
(a) 'If bonding of the limestone blocks can be either confirmed or retrospectively installed, the wall will be structurally sound';
(b) 'Tensar/geogrid products can be used as an alternative to bonding of limestone backing blocks. The tensar should be installed in a continuous manner'; and
(c) 'Bonding could be retro-fitted (dowelled and epoxied reinforcing) to comply with the original design'.
(a) the Tensar said to have been installed by the respondent was only an effective alternative to bonding blocks if it was installed in a continuous manner;
(b) if the continuous installation of Tensar could be confirmed, the retaining walls will be structurally sound; and
(c) where the Tensar was not installed in a continuous manner, bonding by way of dowelled and epoxied reinforcing could be retro-fitted to the retaining walls in order to comply with the original design.
Legal principles applicable to costs of building disputes in the Tribunal
(1) Subject to this section, the Building Commissioner or the State Administrative Tribunal may make such orders for costs as they think fit in relation to proceedings arising from a building service complaint or a HBWC complaint.
(1) The discretionary power is to be exercised judicially; that is not arbitrarily, capriciously, or so as to frustrate the legislative intent;
(2) The power to award costs is to be exercised if it is fair and reasonable in all the circumstances of the case to do so;
(3) The onus is on the party seeking an order in its favour to establish that a favourable order ought to be made;
(4) Every party to proceedings before the Tribunal is taken to be cognisant of the objectives of the Tribunal as expressly provided for in s 9 of the SAT Act. It is therefore necessary for the applicant to establish that the respondent's conduct has impaired the attainment of the Tribunal's objectives to have the proceedings determined fairly and in accordance with the substantial merits, with as little formality and technicality as possible and in a way which minimises the costs to the parties; and
(5) The mere fact that a party ultimately fails on a contention advanced during the course of the hearing does not, in itself, signify that the party has acted inconsistently with the objectives set out in s 9 of the SAT Act.
Consideration of the respondent's application for costs
(a) the applicants' late and ultimately unsuccessful request to vacate the final hearing date and have the proceedings re-listed for hearing on a later date; and
(b) the applicants' conduct at the final hearing and in their subsequent written closing submissions by, in effect, pursuing issues and proposed outcomes that were not sufficiently supported by the evidence and, ultimately, were beyond the matters found and outcomes ordered by the Tribunal in the substantive decision.
(a) the request was first made in a letter from the applicants' legal representatives to the Tribunal, lodged on the eCourts portal on Friday, 2 August 2024;
(b) without making any finding in this regard, if it was the case, as contended by the respondent, that the letter was lodged with the Tribunal without any prior notice to, or conferral with, the respondent's solicitor, that would clearly be contrary to the expectations of the Tribunal as to the manner in which practitioners, and indeed parties generally, ought to conduct themselves in proceedings before the Tribunal, particularly having regard to the objectives of the Tribunal;[4]
(c) in any event the Tribunal on the next working day, Monday 5 August 2024, ordered that the proceedings be listed for a directions hearing on 8 August 2024;
(d) while the respondent's then legal representative had in the interim, on Saturday 3 August 2024, lodged his letter opposing any vacation of the final hearing date, he also then proceeded to lodge a notice of ceasing to act on 6 August 2024 and, as a result, did not attend the directions hearing on 8 August 2024;
(e) at the directions hearing on 8 August 2024 the Tribunal, for the reasons given at the time, declined to vacate the final hearing but gave leave to the applicants to file a witness statement of the first applicant by no later than 13 August 2024, being the day before the final hearing; and
(f) following the directions hearing, the respondent's previous lawyer then re-commenced acting for the respondent, with a notice of appointment of legal representative being lodged with the Tribunal on 11 August 2024.
(a) the applicants continuing to pursue matters well beyond the scope of the Tribunal's ultimate findings in the substantive decision;
(b) the failure by the applicants to call evidence to support a number of their contentions; and
(c) the ultimate failure by the applicants to establish a number of their allegations of faulty or unsatisfactory work in respect of the relevant retaining walls.
(a) the respondent's failure to instal Tensar in a continuous manner constituted faulty or unsatisfactory work; and
(b) the appropriate solution was to retro fit doweled and epoxied reinforcing to the affected retaining walls.
(a) this concession came only after the close of evidence at the final hearing, by way of the respondent's counsel advising that he had instructions to make the concession;
(b) while the Tribunal accepts this was a genuine concession quite properly made, it was also a consequence of the clear evidence before the Tribunal that the respondent had failed to instal Tensar in a continuous manner and that, in light of the agreed expert position, there was therefore no adequate substitute for the bonding blocks required by the retaining walls design;
(c) with the concession coming only after the close of evidence, both parties had already incurred all of their respective costs up to that point, representing a substantial proportion of the costs now claimed by both parties.
(a) a far earlier acceptance that his construction of the wall was faulty or unsatisfactory; and
(b) a far earlier proposal to undertake the retro-fitting of bonding and, had that occurred, a potentially very different argument as to costs and possibly irrespective of whether or not the proposal had been accepted.
(a) the opening submissions by counsel for the respondent to the effect that the respondent's case was that Tensar had been installed, noting that the issue upon which the substantive decision turned was whether it was installed continuously;
(b) the cross-examination of the first applicant in relation to matters such as the extent to which she observed the work being done by the respondent and his team and the extent to which the work site was visible from inside the applicants' home; and
(c) the cross-examination of the respondent by the applicants' counsel, and the questioning by the Tribunal Members, as to the manner and extent to which Tensar had been utilised in the retaining walls.
(a) the history of how the matter proceeded to a final hearing with a dearth of documentary evidence was set out in the substantive decision at [9];
(b) notwithstanding the limited evidence, the applicants were entitled to proceed with the final hearing in an effort to establish a basis for findings in their favour as to the complaint items before the Tribunal and, if successful in establishing some aspect of the respondent's work was faulty or unsatisfactory, the orders that ought to follow;
(c) while the limited nature of the evidence created an obvious risk for the applicants, the respondent had not admitted any matter in issue, prior to his concession made only after the close of evidence, and the applicants were entitled to adduce such evidence as they could at the final hearing, and seek to cross-examine the respondent and examine the expert witnesses on any areas of disagreement;
(d) only once the hearing had been completed would it be apparent whether the applicants had presented sufficient evidence, including evidence arising from their cross-examination of the respondent, to support their claims and desired orders; and
(e) the Tribunal does not consider that any of the examination of witnesses by counsel for the applicants was such that unreasonable costs were caused to be incurred by the respondent that would warrant any costs orders against the applicants.
(a) $330.00 in respect of an invoice dated 15 December 2022, said to be for 'Design Review & Certification Letter Limestone Wall Details in respect of the applicants' property; and
(b) $528.00 in respect of an invoice dated 27 February 2023, said to be for 'Inspection & Report 27th Feb 23'.
(a) Mr Reed was not called to give evidence at the final hearing;
(b) at least the first of the above invoices from Mr Reed appears to be for the original certification of the retaining walls at the time the works were undertaken and the respondent has failed to identify any basis to suggest that such fees had anything to do with the proceedings in the Tribunal, as opposed to being part of the cost of undertaking the works in the first instance;
(c) the respondent's own evidence at the hearing was to the effect that, when Mr Reed signed off on the retaining walls, he took the respondent at his word that Tensar was in the wall, which must be considered in light of the findings made in the substantive decision as to the failure to properly install Tensar so as to be an effective substitute for the bonding blocks required by Mr Reed's original design; and
(d) other evidence from the respondent as to discussions that he said had taken place with Mr Reed was of no assistance to the Tribunal in circumstances where Mr Reed was not called to give evidence and be available for cross-examination.
(a) the responsive submissions say little more beyond the matters raised in the original submissions;
(b) the responsive submissions express unusually emotive matters in respect of an apparent failure by the applicants to serve their original costs submissions at the time they were lodged, noting that:
(i) while not a substitute for the obligation to effect service, the respondent ought to have been able to access the applicants' submissions from the eCourts portal from the time they were lodged; and
(ii) upon the respondent's legal representative raising the delay in service, the applicants' legal representatives promptly confirmed that the applicants would consent to the respondent having a commensurate extension of time to file his responsive submissions.
Consideration of the applicants' application for costs
(a) in a total amount of $31,445.30,[5] in the event the Tribunal determines that the respondent should pay the applicants' costs of the proceedings; or
(b) in the event the Tribunal does not determine that the respondent ought to pay the applicants' costs of the proceedings then, in the alternative, an amount of $2,344.00 for legal costs that the applicants say were unnecessarily incurred by reason of the respondent's conduct leading to the final hearing running late and closing submissions being done in writing, rather than orally within the originally allocated time for the final hearing.
(a) the matters set out above that could have been avoided by an earlier concession by the respondent arising from his failure to install Tensar in a continuous manner; and
(b) extensive examination of the expert witnesses by counsel for the applicants, including in respect of matters for which there was no relevant documentary evidence before the Tribunal and in respect of which the Tribunal ultimately determined that the applicants had failed to establish matters that they sought to press.
(a) $2,200.00 for the preparation of his expert report;
(b) $825.00 for attending the conferral of experts; and
(c) $1,320.00 for his attendance at the final hearing.
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
[1] Applicants' Written Statement of Orders Sought, lodged on 4 September 2024 (Folio 56 on the Tribunal's file).
[2] Signed by both Mr Waddell and Mr Bartlett on 2 July 2024 and lodged with the Tribunal on 12 July 2024.
[3] See in particular Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92 (S) (Hippydayze (S)) at [4] to [12] and Gileno and Riviera Homes (WA) Pty Ltd [2018] WASAT 48 (S) (Gileno).
[5] Including the additional amount of $2,200.00 for the fees of Mr Waddell for the preparation of his expert report.
[6] Drawn from the non-exhaustive list of criteria relevant to the consideration of costs set out Hoskins and Daniel Vinci T/as D'Vinci Contracting [2011] WASAT 188.
[7] Applicants' costs submissions dated 20 January 2025 at para 5.5.
Deshmukh and Distinctive Building Services Pty Ltd [2024] WASAT 62
Gileno and Riviera Homes (WA) Pty Ltd [2018] WASAT 48 (S)
Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92 (S)
Hoskins and Daniel Vinci T/as D'Vinci Contracting [2011] WASAT 188