Homeark Constructions v Hillside Excavations
[2014] NSWCATAP 77
At a glance
Source factsCourt
NCAT Appeal Panel
Decision date
2014-10-14
Source
Original judgment source is linked above.
Judgment (7 paragraphs)
reasons for decision 1This is an appeal against a decision of the Tribunal refusing an application to set aside an earlier decision of the Tribunal made in home building proceedings HB 13/42869 on 6 May 2014 (the original decision). In the original decision the appellant was ordered to pay the respondent the sum of $20,060. 2The application to set aside was proceedings number HB 14/24035. The application to set aside was lodged on 8 May 2014 pursuant to Regulation 9 of the Civil and Administrative Tribunal Regulation, 2013 (Regulation). The decision refusing the set-aside application was made on 26 June 2014 (set-aside decision). 3The appellant did not seek to appeal the original decision. 4For the reasons which follow, the appeal should be allowed in part and the order for payment of money made in the original decision varied so that the amount payable by the appellant to the respondent is reduced to $16,210.00 because the parties agree that the appellant has in fact paid $21,850.00 rather than $18,000.00 as found by the Tribunal in the original decision.
Background 5Home building proceedings HB 13/42869 were commenced in the Tribunal by the respondent in 2013. Those proceedings were required to be determined in accordance with clause 7 of Schedule 4 of the Civil and Administrative Tribunal Act, 2013 (Act). The original decision and the set-aside decision, having been made in 2014, are general decisions by the Tribunal within the meaning of the Act and are both internally appealable decisions. 6The dispute which was the subject of the original decision relates to a claim by the respondent for unpaid money under a contract with the appellant to perform residential building works within the meaning of the Home Building Act, 1989. There is no dispute that the work performed was residential building works or that the Tribunal had jurisdiction to hear and determine the claim. The works to be performed were the redesign and construction of sewer works at a site at ###, Strathfield. 7In the original decision the Tribunal determined that the parties had entered into a contract for redesign of the sewer totalling $6710.00 and rectification work totalling $31,350. The Tribunal also determined that the appellant had paid the sum of $18,000.00 in respect of the works, leaving an outstanding sum of $20,060.00 owing to the respondent. 8Prior to the hearing on 6 May 2013, the proceedings had been listed in the Tribunal for the purpose of the Tribunal make directions for the filing and service of evidence. As set out in the Reply to Appeal the Tribunal made directions for the filing and service of the parties' evidence on 25 February 2014, 10 April 2014 and 2 May 2014. The directions made on 25 February 2014 required the appellant to file and serve any evidence by 25 March 2014. On application by the appellant, on 10 April 2014 the time was extended until 15 April 2014. 9At all relevant times the appellant was represented by a legal practitioner, leave having been granted on 25 February 2014. 10The appellant made a further application to extend time until 2 May 2014. This application was not granted on the basis it could be "considered by the Tribunal at the hearing on 6 May 2014". The Tribunal also said that "the (appellant) is to comply with the directions prior to the hearing. You should comply with the procedural directions as soon as possible. Issues of non-compliance with procedural directions may be raised with the Tribunal at the next hearing". 11The appellant failed to file and serve any evidence in accordance with the directions which the Tribunal had made. 12When the matter was heard on 6 May 2014 the appellant failed to appear. There is no dispute that the appellant had notice of the hearing to which the original decision relates. However, the appellant contends it had "no opportunity to provide evidence": see ground 12B ii of the Notice of Appeal. 13Following the publication of the original decision, the appellant filed the set-aside application which is the subject of this appeal. This application is Exhibit A. The appellant failed to file and serve this material as directed by the Appeal Panel pursuant to order 3 made 25 August 2014. However, by consent this material was admitted as an exhibit during the hearing of the appeal. 14No application in the nature of a cross claim was filed by the appellant prior to 6 May 2014 nor has it been subsequently filed. 15In the application to set aside the appellant sought the following orders: (a)applicants case to be dismissed (b)cross-claim in the amount of $7240.40 to be paid by the applicant to the respondent (c)applicant to complete certification of sewer works undertaken at ### Strathfield for the purpose of complying with Sydney Water". Orders (b) and (c) could not be made in favour of the appellant as it had not filed any application. 16An application for an extension of time to apply to set aside the original decision was also made. Having regard to the date when the application to set aside was lodged (being within seven days of the original decision) this request appears to be misconceived. However, in item 9 of the set-aside form the appellant says "Our evidence is submitted in this application and we are ready for a new hearing date". In addition, in item 11 of the set-aside form the appellant said that it wanted an "opportunity for witnesses x 2 to testify and give evidence". 17The application to set aside included a statutory declaration from the appellant's solicitor, Mr Yau, who stated: "I was unable to attend court on 6 May 2014 due to illness. A copy of attached medical certificate references the condition I was suffering. The attached letter also provides clarification of the circumstances. We were unable to have our evidence in readiness for Tribunal hearing on 6 May 2014, however evidence we seek to rely upon has now been finalised and is now attached to this application. Merits of our case have also been attached to this application." 18The attachments to the application to set aside included: (a)a letter from the appellant's lawyer dated 8 May 2014 (set aside submission); (b)a medical certificate dated 8 May 2014; (c)the directions of the Tribunal made on 2 May 2014 dealing with a further request for extension of time (referred to above); (d)a report from a building consultant, Mr Mario Bournelis, dated 7 May 2014; (e)bank records said to record payments made by the appellant to the respondent in connection with the works; (f)a statement of Mr Jason Huang headed "1 May 2014" but signed and dated 7 May 2014; (g)a letter from the respondent to "Reece" dated 21 January 2013 setting out the work carried out by the respondent said to be at the request of the appellant for a cost of $38,060 (being the amount found payable to the respondent by the appellant in the original decision) 19The content of the set-aside submission can be summarised as follows: (a)On 4 May 2014 the appellant's lawyer sustained an allergic reaction and was unable to attend work until 7 May 2014; (b)On 5 May 2014 the appellant was notified of the directions made on 2 May 2014, namely that any request for an extension of time would be dealt with on 6 May 2014; (c)The property at Strathfield was occupied by a new owner and it had been "extremely difficult in organising access to the site to obtain the appropriate inspection. The owner was not easily contactable and was not conducive to allowing an inspector to attend his premises." (d)"Once the inspection was undertaken" it was necessary for the expert to undertake "extensive research in forming his opinion regarding the quote that (the appellant wished to submit) in our application"; (e)"The expert report was determinative of the issues at hand, in particular as to whether it would support our client's position that (the respondent) and our client had originally agreed that the cost of works would be much less than what was quoted by (the respondent)."; (f)The expert report was finally completed on 7 May 2014 "as adjustments needed to be carried out to the final figures to accommodate what was actually completed by (the respondent) at ... Strathfield"; (g)"It would have been impossible for our witness statement from Jason Huang to have been completed without the expert report" which was attached to Mr Huang's statement. 20The set-aside submission then set out further contentions under the heading "Merits of our case". Inter alia, the appellant submitted that: (a)The works undertaken by the respondent would have cost "only 34% of the quote and invoice provided by (the respondent) being $31,350" if carried out by another contractor; (b)Bank statements were available indicating an amount of $21,850.00 had in fact been paid rather than the $18,000.00 is found by the Tribunal in the original decision; (c)By reason of the monies paid and the fact that the appellant expert had assessed the reasonable value of the works as $10,599.60, the appellant had in fact overpaid respondent the sum of $4540.40; (d)The work remains incomplete in that required certification for Sydney Water (a section 73 certificate) has not been provided; and (e)"The quote signed by (the appellant) was under unusual circumstances and (the appellant asserts the respondent) coaxed (the appellant) to sign such application." 21The appellant then submitted: "We would like to seek your understanding in ensuring that the matter is dealt with in a fair manner so that justice can be served. We do appreciate the Tribunal's timetable, however in this instance we would seek your understanding as to the unfortunate circumstances I had come by and as to the fact that we were not given the opportunity to present our evidence so that a fair hearing would be heard." 22The application to set aside was refused for the following reasons: "The applicant's legal representative has filed medical evidence that he was unable to appear on behalf of the Home Owner on 6 May 2014 due to illness. The Tribunal hearing date was 6 May 2014. The legal representative's medical certificate indicates the legal representative had been receiving medical treatment from 4 May 2014 for eczema. There would appear to be ample time to arrange an alternative legal representative to attend the Tribunal on the hearing date and there is no explanation as to why the appellant did not appear at the Tribunal by an alternative representative. The homeowner has failed to comply with procedural directions and the Tribunal has taken into account the difficulties the applicant was having and extended the time. The application by the contractor was for money owed under the contract for work performed. The applicant has foreshadowed an application for defective works. I am not satisfied that the absence of the applicant resulted in the applicant's case not being adequately put in relation to the cause of action for the Tribunal."