[2025] QCAT 329
General information, not legal advice.
Queensland Civil and Administrative Tribunal
2025-09-01
Original judgment source is linked above.
This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld)
[41] The objects of the QCAT Act, including the issues of access to the Tribunal and the minimisation of costs, provide an appropriate reference point for the operation of s 100 of the QCAT Act and, in that context, may be placed in the balance along with the s 102(3) interests of justice considerations. The interplay between s 100 and s 102(3) may well vary, depending on the impact a costs order in the case at hand might have on access to justice and the other objectives in s 3 of the QCAT Act.
[42] For example, the prospect of an adverse costs order is likely to weigh heavily on any decision to seek review of certain administrative decisions, which will potentially have a significant impact on access to justice. On the other hand, in relation to body corporate disputes involving significant monetary or other considerations, the interests of justice in awarding costs, as alluded to by Keane JA in Tamawood, might weigh heavily in favour of a costs order. In those circumstances, the disincentive of a potential costs order in bringing a matter before the Tribunal is less likely to loom so large and, accordingly, considerations of access to justice might weigh relatively lightly in the balance against a costs order.
[43] On that basis, the underlying concern of s 100, in particular of not impeding access to justice and maintaining a low cost jurisdiction, may simply be placed in the balance along with the s 102(3) considerations, with the weight accorded to it being largely dependent on the nature and scope of the proceedings.
The QBCC Act provides for the statutory insurance scheme in Part 5. Its purpose is "to provide assistance to consumers of residential construction work for loss associated with work that is defective or incomplete": s 67X(2). The Scheme was explained by Morrison JA, with whom the other members of the Court agreed, in Schneider v Queensland Building and Construction Commission [2021] QCA 155, and I respectfully adopt what his Honour said. It is clear that, when cover under the scheme is provided to a consumer under the QBCC Act, the consumer is in a position analogous to that of an insured under a policy of insurance issued by the respondent as insurer.31 The terms of cover under the scheme are set out in the Regulation under the QBCC Act. The Regulation provides relevantly a limit in the amount of the cover available in various circumstances of $200,000.
(a) The general law with regard to costs (referred to above);
(b) The relative financial circumstances of the parties as a question of fact, that is the applicant is in a parlous financial position compared to the Commission; and
(c) The dispute is complex although it is disputed as to who is responsible for the complexity.
For the avoidance of any doubt, this application does not seek the total costs Mr. Croft has incurred across all matters before the Tribunal. He seeks only those costs incurred directly in connection with these proceedings. For example he does not seek the costs incurred for related proceedings GAR496-22 and GAR347-23 (the related proceedings), or the legal costs incurred for the prior three complaints. All that is sought in this application are the costs incurred in these proceedings, and the discussion below and in the supporting material regarding other matters are merely to give context to a procedurally complex matter.
(a) 2 March 2021: Commission provided its statement of reasons;
(b) 9 April 2021: The applications were listed for a compulsory conference;
(c) 18 May 2021: Agreement that both applications be kept separate but be heard and decided together;
(d) 27 August 2021: Mr Steele's further report was filed and served;
(e) 1 April 2022: The Commission filed and served statements from Mr Rebibou (Booth Engineering) and Mr Middleton with reports annexed;
(f) 12 May 2022: CMG Homes was joined as a party;
(g) 30 May 2022: Joint expert conclave with geotechnical engineers;
(h) 13 June 2022: Geotechnical engineers provided joint expert report;
(i) 25 July 2022: Joint expert conclave of engineers;
(j) 24 August 2022: Engineers provided joint expert report;
(k) 21 November 2022: CMG Homes seeks external review of the Direction to Rectify in relation to 5th complaint (GAR496-22);
(l) 22 November 2021: Applicant's further complaint to the Commission (the 5th complaint);
(m) 31 January 2022: Compulsory conference;
(n) 26 October 2023 CMG Homes seeks external review of scope of work in relation to 5th complaint (GAR347-23);
(o) 6 February 2024: Parties notified that CMG Homes had gone into liquidation and its proceedings were withdrawn;
(p) 12 June 2024: Directions for filing submissions on costs.
The four experts - Mr Rebibou, Mr Steele, Mr Middleton and Mr Hurley - have all participated in joint expert processes and provided joint reports. None have been cross examined, as the proceeding finalised before hearing. It visits a great unfairness on those experts, whose participation is to assist the tribunal, to invite the tribunal to determine the costs application based on adverse credit findings of experts who have not been cross examined, and who have no opportunity to answer the allegations made against them without reopening the proceeding completely and at significant cost to both parties. It does a great prejudice to the applicant that he cannot test the allegations made against his expert.[16]
Relative strengths of the claims made by each party
Footings have been changed from approved plans corner under block wall on eastern side of house. No re-inspection done or redrawing confirmed by engineer when Scott asked had planned being re-drawn. No change on footing certificate was noted either when provided at handover.
Put simply, the commission's position was that a defect in the construction of a key structural component the house was not a structural defect as it had not yet failed enough. This is a misguided approach where there was expert evidence before the Commission that such a failure could be catastrophic. Mr Steele is very clear on how misguided this approach is as a question of engineering practise and the maintenance of proper standards of construction, and how dangerous. Mr Steele's view as to the ultimate risk of collapse has been consistent throughout his involvement.[18]
We stated in our report that the foundations (the target stratum) of the structure was to be the Weathered Rock, at a depth of 1000mm below existing ground level in BH1, and the Weathered Rock at a depth of 1500mm below existing ground level in BH2. Based on what you have told me, this may not have happened, which would be a major issue considering what we recommended.........
You then said they had cut/filled the site (which may have changed the 'H1' classification to a 'P' classification, depending on fill depth), but in any case it would be Global Testing's view that the foundations of the structure should have gone through any uncontrolled fill, founded down to Weathered Rock (original Target Stratum).[20]
Core Comment No 2: Our findings are that at least two of the footings have not been constructed as designed and that this is causing distress to the building. It is likely that this distress will increase, possibly resulting in a catastrophic building failure. We have recommended to the owners that ongoing monitoring be undertaken by a licenced surveyor. Further advice will be provided once monitoring records are available.
Core Comment No 3: The following comments relate to the NJA report. Firstly, the inference that because there are a lack of significant defects and that the floor was possibly built with a pre-existing full indicates that the footings are currently performing adequately is a little misleading because, in our opinion, the house is sliding down the hill. We do, however, note that NJA recommended monitoring (at the end of their report) because of the risk of ongoing movement.
Core Comment No 4: The inspected piers are of inadequate depth and do not found in rock. The investigation works have proven this. Other footings might also be inadequate. The NJI report does not provide comment about the possible impacts of the constructed footings not being in accordance with the design. There is a sound technical reason for the footing being designed to found within the rock. It so they don't move down the hill.
Core Comment No 5: it is presumptuous to assume that the fill has moved the footings. The movement of the footings may equally have caused the cracking in the fill.
Did the Commission act in a way that disadvantaged the applicant
Despite having all the information necessary to properly investigate the footings and take the steps it has now taken, it declined to do so. It declined to do so on three occasions. It made errors and omissions in its dealings with Mr Croft in the proceedings which caused delay and expense. It took steps (such as with respect to the briefing of experts and provision of expert reports), which caused delay an expense. It did not participate effectively or meaningfully in attempts to resolve the proceedings early. These matters have directly caused Mr Croft being handed a hollow success.[21]
(a) having regard to the history of these applications;
(b) the investigations by Newsky in April 2020 and the subsequent reports and comments from Core Consultants in the middle of 2020 clearly identifying non-compliance with the footing design;
(c) the financial circumstances of the applicant, and
(d) the purpose of the HWIS,
that a costs order against the Commission is appropriate in the interests of justice.
[1] Fuge v Queensland Building and Construction Commission [2014] QCAT 383, [28]; Stuart v Queensland Building and Construction Commission [2016] QCATA 135, [58]; Cantamessa v Queensland Building and Construction Commission (No 2) [2021] QCAT 213, [20]-[21].
[2] [2024] QCATA 46, [12].
[5] Ralacom Pty Ltd v Body Corporate for Paradise Island Apartments (No 2) [2010] QCAT 412; Marzini v Health Ombudsman (No 4) [2020] QCAT 365.
[6] [2021] QCATA 103, [31].
[7] The subject of a number of complaints.
[8] The company went into liquidation in February 2024.
[9] A residential development between Dayboro and Mt Mee.
[10] Affidavit of Claire Aitchison Reid ("the Reid affidavit") Exhibit "FR1".
[11] Ibid Exhibits 'FR2", "FR3", "FR4" and "FR5".
[12] Also referred to RW8009 and RW0010 with the footing plan included in the Commissions costs submissions dated 6 November 2024 ("the Commissions submissions") at [37] and [128].
[13] Applicant's primary submissions [10] settled by Ms McAuliffe-Lake of counsel ("applicant's submissions").
[16] Applicant's submissions in reply [16].
[17] There may have been an estoppel argument raised given the earlier complaints, but the outcome of this would not provide the applicant with any guarantees.
[19] Commissions submissions [146(d)].
[22] [2021] QCATA 103, [75].
[24] The solicitors costs from 1 October 2020 are $134,602.38 including those referred to in [328] of the Reid affidavit.
[25] [2023] QSC 237, [83].
[28] The outlays for Steele Consulting and Core Consultants from early 2020 are about $70,000.
Croft
Queensland Building and Construction Commission [2025] QCAT 329
Commission (No 2) [2021] QCAT 213
Cowen v Queensland Building and Construction Commission [2021] QCATA 103
Fuge v Queensland Building and Construction Commission [2014] QCAT 383
Marzini v Health Ombudsman (No 4) [2020] QCAT 365
Neller v Queensland Building and Construction Commission [2021] QCAT 426
Wardanski v Mawby (No 2) [2023] QSC 237
Pound v Queensland Building and Construction Commission [2023] QCAT 298
Ralacom Pty Ltd v Body Corporate for Paradise Island Apartments (No2) [2010] QCAT 412
Stuart v Queensland Building and Construction Commission [2016] QCATA 135