The quantum meruit claim and whether an adjournment should have been granted
25 The plaintiff submitted a reading of the transcript of the proceedings before the CTT reveals that the plaintiff had very little knowledge about how to prosecute his application and defend the cross application. The plaintiff's Counsel highlighted that plaintiff was not even aware that the absence of a written agreement between himself and the second defendant precluded him from claiming damages or to enforce any other remedy in respect of breach of contract pursuant to s 10 of the Home Building Act 1989 (NSW) (t 12.2). In oral submissions the plaintiff's Counsel stated that while procedural directions were given in relation to Mr Berou's claim none were given in relation to the cross application.
26 The plaintiff submitted that the transcript reveals that the Tribunal member did not make it clear that there were three crucial elements to a quantum meruit claim. He further submitted that the Tribunal Member should have informed him, in no uncertain terms, that he simply did not have any evidence in support of a quantum meruit claim.
27 The following are relevant portions of the transcript are relevant to both issues of the quantum meruit claim and whether an adjournment should have been granted. They are:
MEMBER: "Mr Saad has filed an application seeking that you pay him $40,000. Right, no directions have been made with respect to the exchange of documents. There may be documents. Are you ready to proceed to answer that claim today?"
MR BEROU: Yes
MEMBER: "You understand that if you say yes, you are ready to proceed I will go on to hear the matter and the applicant will more than likely give me documents in support of his case."
MR BEROU: "Yes."
MEMBER: "Those documents, most of it appears were attached to the application. If you need time to prepare a reply to those documents, for example, to obtain an expert's report, then you should consider the position now, because if I start hearing the matter I will not give you time to obtain such a report. I will proceed on whatever evidence is available today. So what I am asking you is do you require time to prepare a reply to this claim that is being brought by the applicant on 21 April?"
MR BEROU: "Go ahead."
…
MEMBER: "Before you go any further, did you have a written contract for this work?"
MR BEROU: "No, no."
MEMBER: "Well, I hope you don't take offence at what I'm about to say, Mr Berou but it appears to me that you would benefit from legal representation. The reason being that in order to set out your case in the absence of a written agreement, contrary to the provisions of the Home Building Act, you have to show to me why or you have to show to the Tribunal firstly why an order should be made in you favour given that no written contract has been entered into in breach of the Act.
And then after you have done that you have to show me that the work was requested, that the work was done, and what the value of the work is. Also there's provisions in the Home Building Act with respect to insurance and it may - did you obtain any home warranty insurance for this work you were going to do?"
MR BEROU: "I have insurance that covers me and the co-workers that work with me, the labourers that work with me."
MEMBER: "I believe you would benefit from legal advice. I saw that previously you were represented in the Local Court by Mr Fegali, Fegali from Prestige solicitors. Would you like to obtain legal representation?"
MR BEROU: "No."
MEMBER: "No, not now, we'd have to come back another day, because I don't think you are presenting your case as strongly as you could and that could be because of language difficulties and you don't understand the law that relates to building activities, residential building work. And I want to give you the opportunity to present your case at its strongest."
INTERPRETER: "I'm just asking if he's keeping track of what I'm saying."
MEMBER: "What do you think?"
ME BEROU: "The legal representation would be through the Tribunal or I have to get my legal representation?"
MEMBER: "You would have to get your legal representation. The Tribunal won't provide it to you. I'm giving you the opportunity to do that."
MR BEROU: "Shouldn't we - should I tell my story to the end and then see what I'm forced to there after I've finished telling my side of the story?"
MEMBER: "On what I've heard so far you don't understand, it appears to me, what you need to show the Tribunal to succeed in your claim. Moreover, given that the applicant, or rather Mr Saad, is seeking $40,000 from you it may be prudent for you to carefully consider your position. If you proceed further without legal representation - which you can, it's your choice - once I've heard the evidence I go to a decision and then you will be abide by that decision."
MR BEROU: "Yes."
…
MEMBER: "Mr Berou, the reason I want to extend to you every opportunity to present your case properly is because the claim made by the other side against you is substantial. Right? Have you received a copy of the application from Mr Saad?"
MR BEROU: "Yes."
MEMBER: "He's claiming $40,000."
MR BEROU: "Yes, I received that."
MEMBER: "Unless you are very well prepared, it could be an outcome of these proceedings that an order is made against you for that amount. I haven't heard all the evidence yet but that's a possibility. That's why I want to make sure that you are well prepared to answer that matter."
MR BEROU: "Yes.* Providing that there is a defect in my work as Mr Saad claims I'm ready to go ahead."
MEMBER: "So you want to proceed today without legal presentation?"
MR BEROU: "Like, hypothetically speaking, if I tell my side of the story to the end, could then after the decision appeal the decision if it's not again - if it's not in my favour?"
…
MEMBER: "Do you want to proceed today or not?
MR BEROU: "Yes."
* Denotes not through interpreter
28 On 1 May 2006 (prior to the hearing date of 1 June 2006), the Tribunal Member explained to Mr Berou that the directions made on 19 April 2006 had not given him a chance to prepare his case in reply to the homeowners' application and notwithstanding that warning, Mr Berou stated that he wanted to proceed. Thus, prior to the hearing date Mr Berou indicated that he wanted to matter to go to hearing.
29 It is my view that at the hearing in the Tribunal the Tribunal Member could not have done more. The Tribunal Member explained to the plaintiff the elements of a quantum meruit claim and that on what he had heard so far he [the plaintiff] did not understand what he needed to show the Tribunal to succeed in his claim. The Tribunal Member explained that if the plaintiff proceeded further without legal representation and heard the evidence, the decision would be final.
30 Despite being advised on a number of occasions that he could obtain an adjournment Mr Berou elected not to take one. In these circumstances the Tribunal Member is not obliged to force a plaintiff to take an adjournment over his continued election not to take one. The Tribunal Member could do no more.
31 As I stated in Milstern Retirements Services Pty Ltd v Carton & Ors [2006] NSWSC 937 it is not the role of the Tribunal Member to ensure that the plaintiff's case is prepared and presented at its highest. Mr Berou chose to follow a particular course which ultimately did not serve him well.
32 There was no denial of procedural fairness. There is no error of law. The decision should not be quashed.
33 The appeal is dismissed. The decision of Tribunal Member Marzilli dated 2 August 2006 is affirmed. The amended summons filed 19 June 2007 is dismissed.
34 Costs are discretionary. Costs normally follow the event. The plaintiff is to pay the second defendant's costs as agreed or assessed.