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[2020] NSWCATAP 99
appellant. Appeal allowed. The orders made on 10 October 2019 in application HB 19/26920 were set aside and the proceedings remitted for rehearing by a differently constituted Tribunal. The parties were given...
7 cited instruments linked from this judgment.
The appeal succeeded because the homeowners were not given a fair chance to question the contractor’s director about disputed evidence central to what the driveway contract required and what had been promised. The Appeal Panel did not rule on whether the driveway breached the contract or consumer guarantees. It set aside the earlier decision and sent the case back for a new hearing before a different Tribunal member, where further evidence may be given.
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2,304 words · generated 02/10/2026
Costa and Helen Jannis engaged Ant-Hassa Pty Ltd, through its director Mr Hassarati, to construct a driveway at their Dural property. The work was agreed to occur in two stages. Stage 1 was completed in December 2016 and stage 2 in August 2017. The homeowners paid the amounts owing. Their dispute concerned stage 1, which they said was not properly constructed, and for which they sought $18,889 in compensation [1].
There was a disagreement about the material and the performance promised. The homeowners said they initially wanted crushed granite and that Mr Hassarati recommended recycled road base, describing it as containing a binder, becoming “as hard as concrete”, not rutting or washing away, and coping with heavy trucks. Mr Hassarati’s account differed. He said he recommended concrete, that Mr Jannis considered it too expensive and disliked its appearance, that the driveway was not intended to be sealed, and that maintenance would be required. The parties ultimately agreed to use recycled road base with lime as a binding agent [5].
After stage 1 was completed, the homeowners complained that its surface was too loose. The parties agreed to a skim coat, applied in August 2017. The evidence also referred to different proportions of binding agent used in the two stages and testing of samples from the driveway [6]. The homeowners obtained a pavement investigation report. The original Tribunal found that the report did not establish that the materials were unsuitable or that the construction failed to comply with national standards. It also considered the report’s design parameters related to rehabilitation of a trafficked pavement, rather than establishing the applicable requirements for this rural driveway [8]. The Tribunal was not satisfied that the driveway was unfit for the purpose of a rural driveway where delivery trucks might visit several times a year [9].
The Tribunal dismissed the homeowners’ application. It treated the Home Building Act claim as outside its jurisdiction because it considered the alleged defects non-major and the claim out of time. The homeowners did not appeal that part of the decision. The Tribunal did consider the consumer claim under the Australian Consumer Law (NSW), including guarantees under ss 60 and 61, but was not satisfied that those guarantees had been breached [2]-[4].
The Appeal Panel did not determine whether the driveway was defective, whether the parties’ contract had been breached, or whether the ACL guarantees applied in the way the homeowners argued. It allowed the appeal because of the way the hearing had been conducted. The Tribunal had not allowed the homeowners to question Mr Hassarati about disputed evidence that mattered to the issues being decided. The Appeal Panel set aside the Tribunal’s orders and remitted the case for a rehearing before a differently constituted Tribunal, with liberty for the parties to adduce further or other evidence.
The Appeal Panel’s central concern was the unequal opportunity to test relevant evidence. It accepted that the Tribunal controls its own procedure. Section 36(1) of the Civil and Administrative Tribunal Act 2013 (NSW) sets the guiding principle of resolving the real issues justly, quickly and cheaply. Section 38(5)(c) requires the Tribunal to take reasonably practicable measures to ensure parties have a reasonable opportunity to be heard or have their submissions considered [16]. The Tribunal also has power to question witnesses itself under s 46(1)(c) [16], [31].
Those powers do not mean that every party has an unconditional statutory right to cross-examine in every NCAT hearing. The Appeal Panel referred to the fact that the NCAT Act does not expressly provide a general right for parties to examine or cross-examine witnesses, unlike provisions identified in the Victorian and Queensland tribunal legislation [31]. It also explained that cross-examination is not essential to every oral hearing, and there is no rigid rule that fairness always requires it in administrative proceedings [30]. The governing question was therefore whether fairness required the opportunity in this particular case.
The evidence showed that the Tribunal had told both parties at the outset that they would have an opportunity to ask questions about, and test, evidence. However, the transcript did not show that the appellants were invited to question Mr Hassarati after his evidence. When Mrs Jannis sought to ask him about a matter, the Member said, “No, no it’s not about asking” and moved towards clarification and closing submissions. The appellants later referred to a handwritten set of questions concerning, among other things, the manufacturer’s guidelines Mr Hassarati said he had followed and whether his other witness had worked on both driveway stages [26]-[27].
The Appeal Panel connected that hearing sequence to the substance of the dispute. The parties’ evidence conflicted about the original request, what the contractor recommended, what performance was promised, and whether maintenance had been discussed [35]-[37]. The Tribunal needed to determine the contract’s terms and scope to decide the contractual and consumer-guarantee claims. The evidence about drainage, who provided it, and whether it was necessary could also matter [38]. In the Panel’s view, it was not a peripheral disagreement. The disputed evidence went to the obligations that the Tribunal had to assess.
The asymmetry mattered. Mr Hassarati had been given an opportunity to question the homeowners, but the homeowners could not question him about relevant disputed matters. The Appeal Panel concluded that this failure denied procedural fairness [39]. Because a denial of procedural fairness is an error of law, the Panel set aside the orders and remitted the case [15], [40]. It expressly left the other grounds of appeal undecided [41].
The judgment describes the applicable procedural position as a balance between tribunal flexibility and the requirements of natural justice. Before this decision, the relevant framework already allowed NCAT to manage its hearings and to determine procedures where the Act and procedural rules did not prescribe them. The Tribunal could inquire into and inform itself as it saw fit, subject to natural justice [31]. Section 46 also authorised the Tribunal itself to call, examine and cross-examine witnesses [16], [31].
The Appeal Panel did not announce a general rule that parties must always be allowed to cross-examine. It expressly rejected that kind of rigid proposition, referring to authority that cross-examination is not essential to every oral hearing and that fairness does not invariably require it [30]. Nor did the Panel treat the absence of an express general party right in the NCAT Act as ending the fairness inquiry. Its analysis was contextual: the importance of the disputed evidence, the parties’ unequal opportunity to test it, and the Tribunal’s need to resolve the conflict were central.
The judgment therefore clarifies the application of existing procedural fairness principles in the circumstances before it. Where a tribunal is deciding material factual disputes, and one party has had an opportunity to question the other while being denied an opportunity to question that party’s witness, the denial may amount to procedural unfairness. The judgment’s conclusion rests on the evidence and hearing conduct in this case, not on an automatic entitlement to cross-examination in all tribunal proceedings.
The decision did not finally determine the homeowners’ claims or change the substantive tests under ss 60 and 61 of the ACL. It did not decide whether the services were performed with due care and skill, whether they were fit for a disclosed purpose, or whether the homeowners had established a contractual breach. Those issues remained for the rehearing, after the evidence and contract terms were properly considered.
At [30], the Appeal Panel said that “cross-examination is not an essential element of an oral hearing” and that fairness does not always require it in an administrative hearing. In plain English, a tribunal can use flexible procedures. The judgment does not create a rule that every witness must always be questioned by the other party.
At [31], the Panel explained that NCAT’s power to set its own procedure is subject to natural justice. In plain English, procedural flexibility has limits: the Tribunal must still conduct the hearing fairly.
At [33], the Panel stated that the Tribunal erred by “not allowing cross-examination and/or failing to offer the appellants with a chance to do so”. This identifies the procedural failure. The problem was not simply that the appellants did not ask questions; the Panel considered that they had not been given a fair opportunity to do so.
At [39], the Panel linked the unequal opportunity to the disputed issues and held that the failure constituted a denial of procedural fairness. In plain English, the appellants were denied a chance to test evidence that mattered to the decision, while the respondent’s director had been given a chance to question them.
At [40], the Panel said the decision should be set aside and the proceedings remitted for rehearing. This was a procedural remedy. It did not decide who was right about the driveway or whether compensation was payable.
The Panel also made observations about issues for the rehearing. At [43], it noted that the original Tribunal appeared not to have considered whether a breach-of-contract claim might be pursued under other provisions of s 48K of the Home Building Act, as distinct from the statutory-warranty claim. At [44], it identified the importance of clarifying what work the contract covered, whether any work such as drainage was excluded, and what warnings had been given about maintenance and performance. At [45], it noted photographs of a significant pothole and evidence of erosion that would need to be evaluated against the obligations said to have been assumed.
The judgment is relevant where an administrative tribunal decides a case involving material disputed evidence and one party is not given a reasonable opportunity to test the opposing party’s witness. The facts that mattered here included the director’s evidence about what the homeowners requested, what he promised, and the nature of the agreed work. Those matters were central to identifying the contract terms and assessing the consumer-guarantee claims [34]-[39].
The procedural imbalance was also significant. The respondent’s director had an opportunity to question the homeowners, but the homeowners were not offered an opportunity to question him. The transcript indicated that the Member moved on from their request to ask about his evidence [23]-[27]. The Panel did not treat every failure to permit cross-examination as unfair; it examined what the disputed evidence concerned and how necessary it was to deciding the claims.
The decision may therefore be pertinent to hearings where a party is self-represented, the tribunal controls questioning, and a party is unclear about whether or how they may challenge evidence. The Panel referred to cases recognising that failing to explain procedure to an unrepresented party, if requested, may also raise fairness concerns [29]. However, the judgment does not say that every procedural explanation must be given in every case. Its reasoning remains tied to the circumstances and the impact on the opportunity to be heard.
The decision is less directly concerned with a complaint that a party could not add new expert evidence where the expert report had already been filed and admitted. The Panel rejected that separate ground, noting the potential unfairness to the other party if additional oral expert evidence were introduced without a proper opportunity to consider and answer it [19]-[22].
The supplied judgment contains no discussion of later decisions applying, distinguishing or reconsidering Jannis. It was decided on 29 May 2020, and the material provided does not include subsequent case law. The later treatment of the decision therefore cannot be established from this judgment alone.
The authorities discussed by the Appeal Panel are authorities it considered in reaching its own decision, not later treatment of Jannis. The Panel referred to Morgan v Shardlan and Gallo v Duflou for the possibility that failure to allow cross-examination can deny procedural fairness, and to Lee v Cha, Wilson and Renda concerning procedural explanations and unrepresented parties [28]-[29]. It also referred to O’Rourke v Miller and Sullivan v Civil Aviation Safety Authority for the qualification that cross-examination is not invariably required [30]. Cheung v Yang was cited in relation to the Tribunal’s power to dispense with cross-examination, provided procedural fairness is observed [31].
The Appeal Panel did not resolve the merits of the driveway dispute. The rehearing would need to identify what the parties agreed the contractor would do, what material and performance characteristics were promised, and whether any work was excluded or to be undertaken by the homeowners or another supplier [35]-[38], [44].
The Panel also did not decide whether the evidence established a breach of ss 60 or 61 of the ACL. It identified the need to assess the contract and the service actually provided, including the significance of any warnings about maintenance and performance [44]. The effect, if any, of s 18F of the Home Building Act on such warnings was left for consideration at the rehearing.
The treatment of the Home Building Act claim remained an open issue. The Panel observed that the original Tribunal had described the claim as one for breach of statutory warranties, but appeared not to consider whether a breach-of-contract claim might otherwise be pursued under s 48K [43]. It did not decide that question.
Finally, the Panel did not determine how much weight should be given to the expert report, the photographs, the evidence of erosion, or the test results. It noted that the pothole and erosion evidence required evaluation against the obligations assumed by the contractor [45]. Those factual and legal questions were left to the differently constituted Tribunal.
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Overview
The decision under appeal
Grounds of appeal
Issues on appeal
Whether Tribunal failed to afford procedural fairness
Other matters
Orders
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales. Registrar DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 29 May 2020
Jannis
Ant-Hassa Pty Ltd
(1985) 156 CLR 342
(2014) 226 FCR 555
Appeal allowed. The orders made on 10 October 2019 in application HB 19/26920 were set aside and the proceedings remitted for rehearing by a differently constituted Tribunal. The parties were given liberty to adduce further or other evidence, and the remitted proceedings were to be listed for directions as soon as possible.