[2019] VCAT 1329
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2019-08-30
Original judgment source is linked above.
Evidence of the driveway not being suitable for use
The maximum gradient of domestic driveways shall be 1:4 (25%). The maximum gradient of the associated access driveway across a property line or building alignment shall be 1:20 (5%)...
Grade changes across a footpath and within the property shall be designed and checked in accordance with Appendix C to ensure that vehicles will not scrape their undersides when negotiating them. Transitions may be required (see clause 2.5.3(d)). Checks may be required along one or both edges of a driveway as well as along the centreline if there are changes in the cross slope at or near a grade change.
NOTE: It is recognised that limiting domestic driveway grades to 25 per cent maximum may not be practicable in some particularly hilly residential locations. The services of a professionally qualified person with appropriate experience may be required to make a judgement as to whether a particular grade line design is safe and environmentally sustainable.
Experts Agree that the construction of the driveway does not meet AS 2890.1
Was Mr Brown aware of the defective driveway at the date of purchase, such that he has incurred no loss?
In my opinion, applying the same reasoning, a successor in title who acquires a building in full knowledge of its defects, suffers no loss from the existence of those defects. In those circumstances, the builder's breach of statutory warranty could not be said to have diminished the successor's assets, nor increased its liabilities. Any adverse impact to the successor's financial position, and any loss to the successor, would result from the successor knowingly and deliberately paying more for the building than it was worth. The loss would be caused by the successor's own decision to purchase at the agreed price.[3]
...predicated on the "full knowledge" of the defects as being not only knowledge of the existence of the defects but also knowledge of their significance. A party may know of the existence of the defects (because they are patent), but may not appreciate-even acting reasonably-that major expenditure would be required to remedy them.[4]
After seeking advice regarding the driveway which is at a 22 degree angle (20 is the maximum allowed) the driveway has not been built with good workmanship, care and skill as required, the driveway is dangerous and if a vehicle is parked on it, it slides down the driveway unless the vehicle wheels are [chocked].
I told [your vendor] before I did this driveway there are issues, and it is going to be steep. Because the land was on a high elevation, at that stage he agreed and I did the job.
Subsequently he decided to sell the house, before you purchased this house you saw the condition of this driveway, if you were not happy at that stage, you did not have to purchase this house, now I can't do anything about this driveway any more, the previous owner was happy he was driving up & down, if you had raised this question before purchasing this house we would have told you we can't do anything about it.
I have spoken to the Victorian Building Authority and have discussed the problem with them, I read your email to them and it's clear that you have stated you know it was outside the legal building requirements, however you built it anyway. That in itself is illegal. The building authority would like us to come to a resolution, if we can not, I have been advised to fill out their complaint form to get them involved.
...In a previous email sent from you, you have advised that you discussed the driveway was too steep with the client the house was built for, therefore admitting that you were aware at the time of building the property that was unsafe...
...Regards to this driveway, I am unable to do anything regarding this matter, this house was built by me for a client which I explained to him before building this driveway, he [accepted] it as he had a 4 wheel drive & he did not want to spend any extra money, then this house was sold to you...the sales rep [Mr Tangri] explained to you about the steepness of the driveway, and due to this, this was sold $20,000 less than the market value. If you have forgotten all this you can call the sales rep; he will tell you what he spoke at that time to put the price down.
Has the owner incurred no loss as a result of the defect, because he ought to have been aware of the defect?
Where I am satisfied that a defect was latent, or where it could not have been reasonably observable on inspection prior to purchase I will allow what I find to be the reasonable cost of rectification of the defect...Where I find that a defect was reasonably observable to Mrs Beamish at the time of purchase, whether or not she actually noticed the defect, no allowance will be made[6]
Has the owner failed to establish that the cause of his loss was a breach by the builder of one of the warranties implied by section 8?
1.5 The gradient of the driveway is defective work as a result of the builder not constructing the garage floor at the height nominated in the architectural drawings...
Remove and dispose of existing paving along external garage wall
Engineer's design for new garage slab structure, including temporary works and SWMS
Underpinning the edge beam around the garage external wall, such that it becomes a viable strip footing
Cut infill slab and driveway into sections and remove
Pour new infill slab, pour new driveway, form step up in the pathway leading to the front door
Remove and dispose of existing paving along external garage wall
Engineer's design for new garage slab structure, including temporary works and SWMS
Underpinning the edge beam around the garage external wall, such that it becomes a viable strip footing
Further works required as a result of lowering the level of the garage
Lower the patio (total area 10m x 4m) by 400mm and construct steps to back door.
Engineering design of new retaining wall, and construction thereof
[1] See Bonarrigo v DSF Pty Ltd trading as LaRosa Tiling Company (Domestic Building) [2012] VCAT 1404 at[33]-[40].
[6] Beamish v Rosvoll (Domestic Building List) [2006] VCAT 440, 17 March 2006 at [19]; see also DeLutis v Housing Guarantee Fund Ltd (Domestic Building List) D214/2003 at [24]-[27].
[7] Mr Osborne's stated the reference in paragraph 1.11 of his report to 200mm only was in error, and should be a reference to 400mm.
[9] Buildspect report pages 5-7 (Item 2) and 25 (Item 2).
[10] See quotation of Quinton Hannett dated 15 January 2018.
[11] See undated quotation of D&D Painting Services.
[12] Guide to Standards and Tolerances 3.04.
[13] Buildspect report page 8 (item 4) and 26 (item 4).
[14] See AS3500.2 Plumbing and Drainage.
[16] Buildspect report page 9 (item 6) and 26 (Item 6).
[17] Burke v Lunn [1976] VicRp 22; [1976] VR 268 at 285; Clarke v Shire of Gisborne [1984] VicRp 77; [1984] VR 971 Boncristiano v Lohmann [1998] 4 VR 82.
Brown
S & B Weerasinghe Pty Ltd
Whether the subsequent owner was or ought to have been aware of claimed defects when purchasing the property; Bonarrigo v DSF Pty Ltd trading as LaRosa Tiling Company (Domestic Building) [2012] VCAT 1404; Allianz v Waterbrook [2009] NSWCA 224; Beamish v Rosvoll [2006] VCAT 440 considered.