[2023] ACAT 35
General information, not legal advice.
ACT Civil and Administrative Tribunal
2023-06-19
Original judgment source is linked above.
To design a good quality and sustainable house that takes into account and benefits from the block's location, its qualities and characteristics, and the surrounding environment, while achieving maximum utility through the use of cleverly designed living spaces.
60 Guarantee as to due care and skill > > If a person supplies, in trade or commerce, services to a consumer, there is a guarantee that the services will be rendered with due care and skill. > > 62 Guarantee as to reasonable time for supply > > If: > > (a) a person (the supplier ) supplies, in trade or commerce, services to a consumer; and > > (b) the time within which the services are to be supplied: > > (i) is not fixed by the contract for the supply of the services; or > > (ii) is not to be determined in a manner agreed to by the consumer and supplier; > > there is a guarantee that the services will be supplied within a reasonable time.
(1) A consumer may take action under this section if:
(a) a person (the supplier ) supplies, in trade or commerce, services to the consumer; and
(b) a guarantee that applies to the supply under Subdivision B of Division 1 of Part 3-2 is not complied with; and
(c) unless the guarantee is the guarantee under section 60--the failure to comply with the guarantee did not occur only because of:
(i) an act, default or omission of, or a representation made by, any person other than the supplier, or an agent or employee of the supplier; or
(ii) a cause independent of human control that occurred after the services were supplied.
(2) If the failure to comply with the guarantee can be remedied and is not a major failure:
(a) the consumer may require the supplier to remedy the failure within a reasonable time; or
(b) if such a requirement is made of the supplier but the supplier refuses or fails to comply with the requirement, or fails to comply with the requirement within a reasonable time--the consumer may:
(i) otherwise have the failure remedied and, by action against the supplier, recover all reasonable costs incurred by the consumer in having the failure so remedied; or
(ii) terminate the contract for the supply of the services.
(3) If the failure to comply with the guarantee cannot be remedied or is a major failure, the consumer may:
(a) terminate the contract for the supply of the services; or
(b) by action against the supplier, recover compensation for any reduction in the value of the services below the price paid or payable by the consumer for the services.
(4) The consumer may, by action against the supplier, recover damages for any loss or damage suffered by the consumer because of the failure to comply with the guarantee if it was reasonably foreseeable that the consumer would suffer such loss or damage as a result of such a failure.
(5) To avoid doubt, subsection (4) applies in addition to subsections (2) and (3).
When a failure to comply with a guarantee is a major failure
(a) the services would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of the failure; or > > (b) the services are substantially unfit for a purpose for which services of the same kind are commonly supplied and they cannot, easily and within a reasonable time, be remedied to make them fit for such a purpose; or > > (c) both of the following apply: > > > (i) the services, and any product resulting from the services, are unfit for a particular purpose for which the services were acquired by the consumer that was made known to the supplier of the services; > > > > (ii) the services, and any of those products, cannot, easily and within a reasonable time, be remedied to make them fit for such a purpose; or > > (d) both of the following apply: > > > (i) the services, and any product resulting from the services, are not of such a nature, or quality, state or condition, that they might reasonably be expected to achieve a result desired by the consumer that was made known to the supplier; > > > > (ii) the services, and any of those products, cannot, easily and within a reasonable time, be remedied to achieve such a result; or > > (e) the supply of the services creates an unsafe situation.
(a) the failure is one of 2 or more failures to comply with a guarantee referred to in section 267(1)(b) that apply to the supply; and > > (b) the services would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of those failures, taken as a whole. > > Note: The multiple failures do not need to relate to the same guarantee.
174. The text of s 60 does not imply and certainly does not compel the conclusion that if there is a contract in place between the supplier and the consumer the obligations imposed on the supplier by the Care Guarantee are co-extensive with the supplier's contractual obligations. Unless there is some contextual reason to construe the Care Guarantee in s 60 of the ACL as applying only to "services" that are co-extensive with the supplier's contractual obligations, there is no basis for doing so. ... > > 175. In my view there is no contextual reason to construe any of the Consumer Guarantees in this way. To construe the Care Guarantee as applying only to services that are co-extensive with the supplier's contractual obligations would not achieve the object and purpose of the legislation ascertained from the text and structure of the statute. The Care Guarantee is plainly designed to protect consumers by ensuring that the benefits, facilities or other services with which they are to be provided will be rendered with due care and skill. ... > > 176. The threshold inquiry mandated by each of the Consumer Guarantees is to identify ... the benefits and facilities the supplier is to provide to the consumer. This requires an objective assessment of the dealings between the supplier and the consumer to determine the benefits or facilities the consumer can reasonably expect the supplier to provide in return for the consumer's payment.
(a) an early sketch plan done during October 2021 included a kitchen that was eight metres long, which Mr Khan regarded as ludicrously out of proportion;[55] > > (b) at about the same time, plans envisaged an internal staircase two metres wide, which Mr Khan also regarded as impractical;[56] > > (c) the absence of walk-in robes in the master and guest bedrooms;[57] > > (d) inconsistent or wrong information and advice, for example at one point regarding whether the plot ratio had been maximised;[58] and > > (e) late in the process differences of view emerged about the retaining walls referred to above, with Mr Khan wishing a level block of land, to be achieved by retaining walls and fill, and FEA taking the view that if that were done the height of the retaining wall at the edge of the block would be greater than the 1.5 metres allowed, requiring an application for a DA.[59]
Did FEA fail to supply their services within a reasonable time?
Was FEA's failure against the guarantees a major failure?
Did FEA breach the contract by failing to produce a design addressing sustainability issues?
[1] ACT Civil and Administrative Tribunal Act 2008 sections 16, 17
[2] ACT Civil and Administrative Tribunal Act 2008 section 18
[3] Exhibit A1 at [6]; respondent's documents, page 1; applicant's documents, page 3
[6] Respondent's documents pages 24-26; in Exhibit R1 Ms Filardo gives the date as 12 September 2021, and Mr Khan also gives that date (applicant's documents, page 3) but the document itself clearly has 7 September 2021 as the date)
[7] Respondent's documents, page 25, clause 3.1(a)
[8] Respondent's documents, page 26, clause 4.4(n)
[9] Applicant's documents, attachment 3; respondent's documents, pages 31-33
[11] Applicant's documents, page 4, and attachment 2
[12] Applicant's documents, page 4; FEA documents, page 46
[14] Respondent's documents, pages 82-83
[15] Respondent's documents, pages 41-42
[17] Respondent's documents, pages 75-83, 99-103
[19] Respondent's documents, pages 87, 88, 92, 93, 94, 97; Mr Khan's documents pages 4, 5, 39, 40, 41
[21] Respondent's documents, pages 105-107
[26] Applicant's documents, page 7; respondent's documents, page 141
[28] Transcript, page 60, exhibit R1 at [8]
[29] Australian Consumer Law (ACT), section 3
[30] Section 63, excluding from the subdivision contracts for the supply of transportation and storage of goods and insurance contracts, is not presently relevant
[31] The Explanatory Memorandum to the relevant Bill, the Trade Practices Amendment (Australian Consumer Law) (No 2) Bill 2010, which introduced the Australian Consumer Law, is silent on the point
[32] Applicant's documents, pages 4, 5, 7, 10, 11, 12, 29, 32, 33, 34, 35, 37, 38, 39, 40, 41, 45
[33] [2018] NSWCA 238, (Sackville AJA, Payne JA and Barrett AJA agreeing)
[34] Scenic Tours Pty Ltd v Moore [2018] NSWCA 238 at [174]- [176]
[36] Savage v Fairs [2018] ACTMC 17 at [48]
[37] Respondent's documents, pages 17-21
[38] Transcript of proceedings, 7 February 2023, page 44
[40] Transcript of proceedings, 7 February 2023, pages 55-58
[41] Transcript of proceedings, 7 February 2023, page 56
[42] Transcript of proceedings, 7 February 2023, page 56
[43] Applicant's documents, pages 12-13
[50] Transcript of proceedings, 7 February 2023, pages 49, 96
[51] Respondent's documents, pages 73-98
[52] Transcript of proceedings, 7 February 2023, page 49
[53] Transcript of proceedings, 7 February 2023, page 53
[54] Transcript of proceedings, 7 February 2023, pages 50, 52
[55] Transcript of proceedings, 7 February 2023, pages 42-43
[56] Transcript of proceedings, 7 February 2023, page 21
[57] Transcript of proceedings, 7 February 2023, pages 23, 27
[58] Transcript of proceedings, 7 February 2023, pages 32-3
[59] Transcript of proceedings, 7 February 2023, page 53; exhibit R1 at [27]
[61] Clause 4.4(n), Respondent's documents, page 26
[62] Applicant's documents, attachment 1
[64] Applicant's documents, pages 23-24
[65] Applicant's documents, attachment 3
[66] Australian Consumer Law (ACT) section 267(3)
[67] Australian Consumer Law (ACT) section 267(4)
[68] Australian Consumer Law (ACT) section 267(2)
[72] See for example Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 24
[73] Applicant's documents, attachment 3
[74] Respondent's documents, pages 85, 92, 93; Transcript of proceedings, 7 February 2023, page 24
[80] Exhibit R1, at [4], [7], [26], [27], [28], [29]
[81] Respondent's documents, pages 85-98
KHAN
FILARDO ERCAN ARCHTECTS PTY LTD
Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 24
Savage v Fairs [2018] ACTMC 17
Scenic Tours Pty Ltd v Moore [2018] NSWCA 238
(1977) 180 CLR 266