[2025] NSWCATAP 260
General information, not legal advice.
NCAT Appeal Panel
2025-10-17
S De Jersey, Principal MemberR C Titterton OAM, Senior Member
Original judgment source is linked above.
Bianco Walling Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union [2020] FCAFC 50
Carr v The State of Western Australia [2007] HCA 47
Chief Executive Officer of Customs v Adelaide Brighton Cement Ltd (2004) 139 FCR 147; [2004] FCAFC 183
Dyjecinska v Step-Up Renovations (NSW) Pty Ltd [2023] NSWCATAP 36
IW v City of Perth (1997) 191 CLR 1; [1997] HCA 30
Keirl v Kelson (2004) VR 244
Metal Manufacturers Ltd v Lewis (1988) 13 NSWLR 315
Mills v Walsh [2022] NSWCA 255
MyEnvironment Inc v VicForests (2013) 42 VR 456; [2013] VSCA 356
Oikos Constructions Pty Ltd t/as Lars Fischer Construction v Ostin [2020] NSWCA 358
Owners Corporation Strata Plan 61288 v Brookfield Multiplex [2012] NSWSC 1219
Prendergast v Western Murray Irrigation Ltd [2014] NSWCATAP 69
Secretary, Department of Social Security v Cooper (1990) 19 ALD 1; 94 ALR 301
State of New South Wales v Chapman-Davis [2016] NSWCA 237
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165
Unique Commercial Group Pty Ltd v Cusumano [2024] NSWCATAP 204
Victims Compensation Fund Corporation v Brown [2003] HCA 54; 77 ALJR 1797
Westerweller v The Owners Strata Plan No 18482 [2023] NSWCATAP 113
Carter and Harland, Contract Law in Australia (3rd ed, 1996, Butterworths)
(1) Ground 1 does not disclose any question of law; it is "simply a vague contention" that the Homeowner should have won the case;
(2) while the Tribunal found, at [60], that the "purpose" or "stated purpose" of the contracts (for the purposes of the warranties implied by ss 18B(1)(b), (e) and (f) of the HB Act (Implied Warranties) did not require the Builder to find the source, whatever it was, of any water the Homeowner has not explained why the Tribunal erred, or ought to have made different findings;
(3) what the Homeowner essentially seeks to do in this ground is to simply say that the Tribunal erred as to its ultimate conclusions in the proceedings, and should instead have found for the Homeowner, but without identifying why;
(4) while the Homeowner originally sought to rely on the Implied Warranties to expand the scope of work from that stated in the contracts, the Tribunal (at [14]-[19]) correctly identified and applied the law on this issue as set out by the Court of Appeal in Oikos Constructions Pty Ltd t/as Lars Fischer Construction v Ostin [2020] NSWCA 358 ("Oikos");
(5) the Tribunal correctly considered the relevant "purpose" (for the purposes of the Implied Warranties) by reference to the factual material in the proceedings, including the written contractual documentation and evidence of relevant discussions: Primary Decision at [20];
(6) the Tribunal correctly found that weight should be given to the written and signed contractual documentation itself, which contained a description of the works and their purpose, and less weight should be given to the parties' recollection of conversations, or what the appellant may have said in an initial enquiry, in determining the objective purpose of the works: Primary Decision at [57]-[60];
(7) the matter of weight to be given to evidence is a matter for the primary decision-maker, and does not give rise to a question of law on appeal;
(8) in any event, the Tribunal found at [59] that even if it accepted the Homeowner's version of the conversations, that was factually insufficient.
(1) the Tribunal correctly found at [61] that the warranty implied by s 18B(1)(e) of the HB Act was limited to the extent of the works that were performed. This is consistent with the wording of the section itself ("to the extent of the work conducted") and the Court of Appeal authority referred to and applied by the Tribunal at [18], Oikos.
(2) Ground 3 suggests that the Tribunal failed to consider whether "the result of those works" rendered the dwelling reasonably fit for occupation "to the extent of those works". The Builder submits that it is not at all apparent what this was intended to mean. In any event, the Tribunal did consider the "result of the works" conducted, and found that they had been conducted satisfactorily: Primary Decision at [42], [103];
(3) if the Homeowner is contending that the s 18B(1)(e) warranty can extend the obligation beyond an expressly agreed scope of works, such a conclusion is inconsistent with Court of Appeal authority in Oikos. If she is contending that the decision in Oikos is incorrect, she has not identified how.
(1) whether there has been a failure to provide proper reasons;
(2) whether the Tribunal identified the wrong issue or asked the wrong question;
(3) whether a wrong principle of law had been applied;
(4) whether there was a failure to afford procedural fairness;
(5) whether the Tribunal failed to take into account relevant (that is, mandatory) considerations;
(6) whether the Tribunal took into account an irrelevant consideration;
(7) whether there was no evidence to support a finding of fact;
(8) whether the decision was so unreasonable that no reasonable decision-maker would make it.
32 To the above list [referring to the list in Prendergast extracted above] might be added the following (some of which are nuanced aspects of the categories in Prendergast):
(1) Whether the Tribunal drew inferences that were not available from the facts as found (an extension of item 7 [of Prendergast]) ...
(2) Whether the construction of a statute or contract arrived at by the Tribunal at first instance was wrong in some identified way: ...
(3) Whether the Tribunal's decision was vitiated by bias, or a reasonable apprehension of bias, relates to and intersects with the fair hearing rule, and may encompass or be related to the procedural fairness question: ...
(4) Whether the Tribunal failed to respond to substantial, clearly articulated arguments based on established facts which may constitute a failure to accord natural justice, that is, procedural unfairness. Alternatively, it may also constitute a constructive failure to exercise jurisdiction: ...
(5) Whether the facts as found necessarily satisfied the statute or necessarily did not: ...
...
(1) identification of the "purpose" or "specified purpose" of the works to be performed pursuant to the DampBlock Contract for the purposes of the Implied Warranties;
(2) identification of the cause of the Water Ingress;
(3) whether the DampBlock Works were performed with due care and skill and were reasonably fit for their "purpose," or any "specified purpose" as required by the Implied Warranties;
(4) whether the fact of any ongoing Water Ingress means that there has been a breach of the Implied Warranties or the DampBlock Contract;
(5) subject to a consideration of issues (1) to (4) what, if any relief ought to be ordered.
"In some circumstances the operation of the warranties may expand the scope of work that a builder contracts to do. Thus, a builder cannot avoid the operation of the warranty under s 18B(b) that the materials supplied be good and suitable by specifying sub-standard materials. A builder cannot avoid the warranty in s 18B(c) that the work comply with the law by relying on the fact that the plans and specifications do not include the provision of sprinklers required by law (The Owners - Strata Plan No 66375 v King [2018] NSWCA 170 at [332], [399]-[409])".
"... have rising damp and damaged walls. Needs damp course and walls repaired. I would like a quote and preferably work is to be done sooner rather than later."
the Tribunal found at [33] that the Homeowner accepted the DampBlock Works quotation on 1 February and the SaltBlock Works quotation on 2 February 2024.[7]
...
"Description of Works
Repair rising damp in walls by injecting damp block systems at locations on the attached repair detail.
...
Warranty details and inclusions
A 10-year warranty will be provided to cover the structure from further rising damp issues at the locations detailed and in accordance with the agreement".
27 It then attached a page of photos which stated:
"Rising Damp Repair Detail
Cause
Likely cause of rising damp is due to an insufficient damp barrier within the walls.
Repair Recommendations
To stop further decay of walls, damp block system to be injected into the wall 150 mm (approx..) above ground level ..."
29 The quote also attached a one-page description of DampBlock rising damp repair.
"Introduction to DampBlock™
DampBlock™™ is a revolutionary new product developed with the home environment in mind. Using water-based technology instead of petrochemical solvents or flammables, DampBlock™ treats rising dampness in masonry without harmful chemicals. It's safe for use around children and pets and leaves no lingering odours.
DampBlock™™ damp proofing method explained
DampBlock™™ is injected through small drill holes near the ground level and penetrates the affected masonry. The injection spacing is approximately 5cm apart, and the process lasts until the wall is saturated and appears wet. After 24 hours, DampBlock™ will begin to fade and will be completely invisible after 72 hours. Soon after injections, the drill holes are filled to blend with the existing.
Quote notes
• This quote does not include decoration works such as replastering or painting.
• If repairs are internal, skirting boards may be removed by Buildfix to access the lowest brick course for injection. The reattachment of skirting boards is not including in this quote and should be left unattached for a 72-hour period to allow the wall to dry.
• Colour variations may occur during repointing. An exact match to the original colour cannot always be guaranteed
• If you are planning on painting the area repaired by Buildfix, allow 28 days before priming the surface.
Customer requirements
• Furniture and valuables near repair locations should be removed before arrival to ensure repairs are undertaken efficiently and completed on time.
• The owner or nominated person must be onsite during repairs.
Warranty details and inclusions
A 10-year warranty will be provided to cover the structure from further rising damp issues at the locations detailed and in accordance with the agreement.
Quotation expiry
This quote is valid for 30 days and will remain fixed price during this time.
Payment terms
Full payment is required 7 days after the invoice date which will be sent shortly after completion. We accept bank transfer and credit card through our payment portal.
Getting started
To accept this quote and proceed, please follow the link below to our booking form. No deposit required. Click here https://live.buildfix.com.au/quote-details/book-my-job/1.0-RD-370772".
Job details
[Date as shown on quote]
[2022-01-31]
Brief Description of Works
Carry out works as per the repair detail provided with the quote.
...
Owners Signature
I accept Buildfix quote.
(The italicised passages do not appear in the Primary Decision, but see p 183 of the "Court Book").
Description of Works
Repair salt damage by removing affected plaster and replacing with SaltBlock systems and locations highlighted on the attached structural prepared details.
...
Warranty details and inclusions
A 10-year warranty will be provided to cover the structure from salt decay at the locations detailed and in accordance with the agreement.
31 It also attached a page of photos identifying work to be performed. The page stated:
Salt Block
Cause
The likely cause of the damaged wall is due to salt crystallisation within the structure. The effects have led to plasterwork decay and detachment
Repair Recommendations
To stop further decay of walls and to increase the visual appearance, salt block system is to be applied onto the wall one metre (approx.) above finished floor
32 The SaltBlock Works quote also attached a one-page summary of the work to be performed.
"Introduction to our SaltBlock™ System
After rising damp treatments, salt crystals can damage plasters, and mould can appear on surfaces as walls dry out.
The SaltBlock™ systems incorporates powerful fungicides and a waterproofing additive to prevent salts from causing damage. The system leaves a great, smooth finish and effectively allows walls to breathe and dry out naturally.
Our SaltBlock™ method explained
SaltBlock™ system are applied onto the wall to inhibit the effects of salt crystallisation and stop further decay. Existing loose and drummy plaster is removed from the wall up to 1m above finish floor level. Walls are treated with a waterproofing tanking coat, followed by 2 x coats of cement render.
Quote notes
• This quote does not include decoration works such as painting or gap filling around skirting boards, facings, or cornices.
• If you are planning on painting the area repaired by Buildfix, allow 28 days before priming the surface, filling the gaps and painting. We recommend, two coats of undercoat and two finish coats. Allow 24 hours between each coat of paint.
• The reattachment of skirting boards is not including in this quote and should be left unattached for a 28 day period.
Customer requirements
• Furniture and valuables near repair locations should be removed before arrival to ensure repairs are undertaken efficiently and completed on time.
• The owner or nominated person must be onsite during repairs.
Warranty details and inclusions
A 10-year warranty will be provided to cover the structure from salt decay at the locations detailed and in accordance with the agreement.
Quotation expiry
This quote is valid for 30 days and will remain fixed price during this time.
Payment terms
Full payment is required 7 days after the invoice date which will be sent shortly after completion. We accept bank transfer and credit card through our payment portal.
Getting started
To accept this quote and proceed, please follow the link below to our booking form. No 3.0-SB-57393".
"Job details
[Date as shown on quote]
2022-01-31]
Brief Description of Works
Carry out works as per the repair detail provided with the quote.
...
Owners Signature
I accept Buildfix quote.
(The italicised passages do not appear in the Primary Decision, but see p 277 of the "Court Book")".
"... apart from removing some plaster, no work was performed because of persistent rain, a leak reported by the [H]omeowner from a hole in the wall where the repairs were to be performed, and more generally, the moisture content of the wall."
"58... the purpose of the DampBlock Contract was to repair rising damp in the relevant wall, which was to be done by injecting the DampBlock at locations on a structural repair detail attached to the DampBlock Works quote. It was not to deal with moisture or water ingress generally. And the purpose of the SaltBlock Works Contract, which works were not performed, was to rectify damage in the hallway wall some of which damage may have been caused by moisture other than rising damp".
"59 Even if I accepted the applicants evidence of what she said to the [Builder's] employee when she made her initial enquiry or to Mr Oliveira on 31 January, when considered in the context of the online enquiry, the quotes, the contracts and the Completion report, I could not be satisfied that that she expressly made known to Mr Oliveira that the particular purpose for which the work was required, or the result she desired the work to achieve, was the inspection of an removal of all water ingress or sources of moisture entering the Property, so as to show that she relied upon [the Builder's] skill and judgment as to what was required to achieve that";
"60 I therefore reject the [H]omeowners submissions to the effect that the 'purpose' or 'stated purpose' for the purposes of the Implied Warranties or the contracts required [the Builder] to find the source, whatever it was, of any water ingress to the Property and produce a methodology which would rectify it".
"61 I also find that the warranty implied by s 18B(e) is limited to the extent of the DampBlock Works that were performed and reject the [H]omeowners submission that the warranty implied by s 18B (e) of the HB [Act] has been breached".
(1) the Tribunal rejected the Homeowner's contentions as to the purpose of the works;
(2) the Tribunal found that the DampProof Works were performed with due care and skill; and
(3) the damages claimed were for:
(a) the repair of the pre-existing damage to the wall which was largely the purpose of the SaltBlock Work and which was not damage said to have been caused by the DampBlock Work; and
(b) the cost to investigate and eliminate the water ingress from the property which the Tribunal had found the Builder was not responsible for.
(1) the Homeowner has failed to do so, and that for that reason alone, the appeal should be dismissed as incompetent;
(2) in Cusumano at [25]-[40], the Appeal Panel noted (at [25(2)]), that a question of law should be stated with precision and that it was not sufficient to simply refer to Prendergast matters without modification or clarification (at [35]-[36]).
"The [Tribunal] erred (at J[61]) in finding that the warranty implied by s 18B(e) was limited to the extent of the DampBlock Works that were performed and reject the [H]omeowner's submission that the warranty implied by s 18B(e) of the [HB Act] has been breached."
"Error in Law: Interpretation/Application of HBA s 18B(e) (Reasonably Fit for Occupation)". The [Tribunal] erred in law in interpreting and applying the warranty implied by s 18B(e) of the HB Act by finding (at J[61]) that the warranty was limited solely to the physical extent of the DampBlock Works performed, thereby failing to consider whether the result of those works, in the context of the known moisture issues, rendered the dwelling reasonably fit for occupation to the extent of those works".
(Emphasis of the Homeowner.)
"merely used different words to describe substantially the same things. The [Homeowner's] submissions do not take things much further. Despite attempts to characterise her arguments as questions of law, in substance they are not."
(1) the Homeowner expressly making known her purpose: "fix the moisture problem in my wall"; make it "nice and repaint it"; this being communicated from the first interaction;
(2) the context "screamed reliance"; a layperson with no technical expertise approaching a large, specialist firm with some 40 employees including engineers and builders holding itself out as capable of providing a "permanent fix" for a significant issue in an old house;
(3) objectively, this demonstrates reliance on the Builder's professed skill and judgment to diagnose and propose an effective solution;
(4) the Builder's representative (Mr Oliveira) acknowledged the moisture issue could be fixed using the Builder's technology, reinforcing the basis for the Homeowner's reliance.
"Even if I accepted the applicant[']s evidence of what she said to the [Builder's] employee when she made her initial enquiry or to Mr Oliveira on 31 January, when considered in the context of the online enquiry, the quotes, the contracts and the Completion report, I could not be satisfied that that she expressly made known to Mr Oliveira that the particular purpose for which the work was required, or the result she desired the work to achieve, was the inspection of an [sic] removal of all water ingress or sources of moisture entering the Property, so as to show that she relied upon [the Builder's] skill and judgment as to what was required to achieve that[.]"
(1) the Builder accepted, "and indeed invited", this reliance. Its representative, a structural engineer, attended the site, inspected the wall, and represented that its technology could fix the issue and provide a "permanent fix";
(2) in his own evidence, the Builder's director, Mr Stewart, states that it was clear that there was an observable damp problem;
(3) the Builder cannot now argue that its obligation was confined to its own flawed and limited diagnosis. By proposing a fixed-price solution to the Homeowner's stated problem without appropriate qualification, the Builder took the risk that its proposed method would be adequate;
(4) critically, if the Builder perceived its proposed solution was limited, it was incumbent upon it to provide express written advice to that effect to engage the s 18F defence. It provided no such advice;
(5) the Builder cannot now complain that it is being held to the standard required by the s 18B(f)[15] warranty, nor can it hide behind its own internal policy of limiting its inspections to the issue identified by the customer in their initial enquiry; such internal policies, cannot override the statutory obligations imposed by the HB Act.
(1) the Builder cannot now argue that its obligation was confined to its "own flawed and limited diagnosis. By proposing a fixed-price solution to the [Homeowner's] stated problem was without appropriate qualification and the [Builder] took the risk that its proposed method would be adequate";
(2) "critically", if the Builder perceived its proposed solution was limited, it was incumbent upon it to provide express written advice to that effect to engage the s 18F defence. It provided no such advice;
(3) the Builder cannot now complain that it is being held to the standard required by the s 18B(f)[16] warranty, nor can hide behind its own internal policy of limiting its inspections to the issue identified by the customer in their initial enquiry; such internal policies, cannot override the statutory obligations imposed by the HB Act;
(4) the Tribunal's failure to find that the warranty was engaged was a misapplication of the legal test for reliance in the context of a consumer engaging a specialist contractor.
18B Warranties as to residential building work
(1) The following warranties by the holder of a contractor licence, or a person required to hold a contractor licence before entering into a contract, are implied in every contract to do residential building work--
...
(f) a warranty that the work and any materials used in doing the work will be reasonably fit for the specified purpose or result, if the person for whom the work is done expressly makes known to the holder of the contractor licence or person required to hold a contractor licence, or another person with express or apparent authority to enter into or vary contractual arrangements on behalf of the holder or person, the particular purpose for which the work is required or the result that the owner desires the work to achieve, so as to show that the owner relies on the holder's or person's skill and judgment.
(1) the HB Act is remedial legislation enacted primarily for the protection of consumers who undertake residential building work: Mills v Walsh [2022] NSWCA 255 at [7]; Secretary, Department of Social Security v Cooper (1990) 19 ALD 1; 94 ALR 301;
(2) there is difficulty in ascertainment of the purpose of a complex statute such as the HB Act and that the level of specificity with which legislative "purpose" is articulated can be critical to the outcome in terms of construction: see Victims Compensation Fund Corporation v Brown [2003] HCA 54; 77 ALJR 1797 ("Brown") at [33]; Metal Manufacturers Ltd v Lewis (1988) 13 NSWLR 315 at 326; MyEnvironment Inc v VicForests (2013) 42 VR 456; [2013] VSCA 356 at [2]- [18];
(3) what emerges from the above is that the legislature was seeking to strike a fair balance between the interests of consumers and home building contractors and recalibrate a contracting process which was described in the relevant second reading speech as having been, for too long, "heavily skewed in favour of the builder". The HB Act seeks to provide a comprehensive scheme of statutory warranties which will enure for the benefit of subsequent owners and close loopholes in situations where, for example, homeowners have been left with no recourse against a bankrupt builder;
(4) in such a case as this, the textual, contextual, and purposive indications point in the same direction, namely that a builder's liability, statutory warranties, is not predicated upon, any abstract concepts in favour of the builder. It follows that the statutory warranties in s 18B must be construed beneficially, not narrowly or technically, so as to give the fullest relief which the fair meaning of their language allows: Dyjecinska v Step-Up Renovations (NSW) Pty Ltd [2023] NSWCATAP 36, with any ambiguity being resolved in favour of the homeowner, consistent with the HB Act's protective purpose: Owners Corporation Strata Plan 61288 v Brookfield Multiplex [2012] NSWSC 1219 at [50]- [51].
(1) erred in a principle of construction;
(2) failed to "integrate" HB Act warranties; and
(3) asked the wrong question.
Alleged error in principle of contractual construction
(1) the Tribunal construed the contract by reference to its express, written terms. As there was no ambiguity in or dispute over any of those terms, the Tribunal did not have to have reference to any particular contractual interpretation principles;
(2) the Homeowner disavowed any implied terms;
(3) there was no case for implied terms in any event;
(4) the Homeowner's contention that the Tribunal erred in applying contractual construction principles by elevating the written quote over the appellant's expressed need is misconceived.
Alleged error in integrating Implied Warranties
(1) as to the Homeowner's contention that the Tribunal failed to apply the principle of beneficial construction when interpreting the scope of the Builder's obligations and the application of the Implied Warranties, just because the Tribunal did not make the findings for which the Homeowner contended, that does not mean that the Tribunal failed to appropriately apply the legislation. While the Homeowner contends that "any ambiguity should be resolved in favour of the Homeowner, consistent with the [HB Act's] protective purpose", the Homeowner has not identified any ambiguities in the relevant legislation, that would need to be resolved using any such principles;
(2) the Implied Warranties are not rendered illusory merely because the facts as found in any particular case are insufficient to extend the express scope of work under the relevant contract;
(3) while the Homeowner refers collectively to the Implied Warranties upon which she makes her claim, being s 18B(1)(b), (e) and (f), the concept of a "purpose" is only relevant to paragraphs (b) and (f). Further, the context in which the word "purpose" is used in each of those paragraphs differs, and each paragraph needs to be considered separately. It was not necessary for the Tribunal, in light of its conclusion in rejecting the broader "purpose" contended by the Homeowner to go into any further detail on the specific meaning of "purpose" of each relevant paragraph of s 18B(1);
(4) the warranty in s 18B(1)(b) is that "all materials supplied by the holder or person will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new". The relevant "purpose" in this context is therefore the "purpose" for which materials supplied are in fact used. That is a different context, and narrower purpose, from that contemplated by s 18B(1)(f). In this case, no particular complaint was made about the suitability of the materials supplied by the Builder for the purpose for which they were used. The Homeowner's attempts to assert a broader purpose for the purposes of this warranty (being a purpose to investigate and conduct fundamentally different works from those specified to address different problems) are inapt in this context, and would be a strain on the language of that paragraph which is focused on the purpose for which materials are actually used.
(1) it is difficult to discern what is the error of law contended by the Homeowner. The Tribunal's reasoning involved a number of steps, and it is not clear which of these steps the Homeowner seeks to impugn;
(2) the first step involved considering what in fact was said by the appellant prior to entering into the Contract. The Tribunal noted that this was disputed: Primary Decision at [24]. Ultimately, the Tribunal did not need to make specific findings as to what in fact was said, because the Tribunal found that even if it accepted the appellant's version in full, that would still be factually insufficient: Primary Decision at [59];
(3) the Tribunal applied an entirely conventional approach to the weighting of the evidence before it, in not placing weight on the parties' recollections of pre-contractual conversations in determining the purpose of the works that the respondent was contracted to perform, in light of the subsequent detailed written contract: Primary Decision at [57];
(4) it is both common and conventional for decision-makers to give greater weight to documentation than to parties' or witnesses' differing recollections of oral conversations, as part of the decision-maker's fact-finding exercise. It is also both common and conventional for decision-makers to give less weight to pre-contractual statements (particularly "as vague as the general nature of an initial enquiry") than to the terms of a subsequent written contract, in discerning the parties' intentions at the time of entering into that contract;
(5) in the present case, the Tribunal did appropriately consider pre-contractual communications for the purposes of the s 18B(1)(f) warranty, although it was also appropriately cautious in its approach to disputed oral evidence (and bearing in mind that the Tribunal did not ultimately need to make findings as to what was said, because the Tribunal considered that even if the Homeowner's version were accepted in full, it would be insufficient).
61. Unprecedented: It would be unprecedented, and a novel extension of the law, if any trade contract, no matter how specific the express scope, limited in price and appropriately disclaimed as to its extent, could be turned into a full warranty and undertaking to do unrelated work to address a different problem, not observable at the time, for the same fixed price, merely on the basis of vague and general statements made by a homeowner at some stage prior to enter into the contract.
62. Subjective intentions: ... it can be accepted as likely that, as a subjective matter, the [Homeowner] desired that she would have no further problems involving water ingress, following the rising damp repairs. Who would not desire to have no further problems? But the [Homeowner] has now sought to translate that understandable human desire into an entirely unjustifiable attempt to retrospectively transfer all such risk to the [Builder], in circumstances where there can be no doubt that the [Builder] never took on such risk.
"... The interpretation of a statute or contract is directed to the ascertainment of the document's actual and true meaning. When the document is properly construed, there is only one correct meaning: Industry Research and Development Board v Bridgestone Australia Ltd [2001] FCA 954, (2001) 109 FCR 564 at [54]; Chief Executive Officer of Customs v Adelaide Brighton Cement Ltd [2004] FCAFC 183, (2004) 139 FCR 147 at [118]. It is for this reason that the proper construction of a statute is a question of law: Adelaide Brighton Cement at [118], [139]."
"As a Full Court of this Court has recently observed, the 'differences between questions of law, fact and mixed fact and law can be difficult to rationalise': Cakmak v Minister for Immigration & Multicultural & Indigenous Affairs [2003] FCA 780; (2003) 75 ALD 478, at [51]; see too, Collector of Customs v Agfa Gevaert Ltd [1996] HCA 36; (1996) 186 CLR 389, at 395-396, per curiam. The question whether facts as found answer a statutory description or satisfy statutory criteria is generally a question of law: Vetter v Lake Macquarie City Council (2001) 202 CLR 439, at 450, per Gleeson, Gummow and Callinan JJ. A question of law will also arise when competing constructions of a statutory expression are put forward, only one of which can be correct: see, for example, Industry Research and Development Board v Bridgestone Australia Ltd [2001] FCA 954; (2001) 109 FCR 564, at 576-579, per Lindgren J (with whom Branson and Mansfield JJ agreed). But when a statute uses words according to their ordinary meaning and it is reasonably open to the decision-maker to find that the facts of the case fall within those words, the question whether they do or not is one of fact: Hope v Bathurst City Council [1980] HCA 16; (1980) 144 CLR 1, at 8, per Mason J, citing NSW Associated Blue-Metal Quarries Ltd v Federal Commission of Taxation [1956] HCA 80; (1956) 94 CLR 509, at 512, per Kitto J; Collector of Customs v Agfa Gevaert Ltd [1996] HCA 36; (1996) 186 CLR 389, at 395, per curiam."
(emphasis added.)
[702] Issue of law. At least where the contract is expressed or evidenced (wholly or partly) in a document, 'construction' raises an issue of law not fact. [Bowes v Shand [1877] UKLawRpKQB 10; (1877) 2 App Cas 455 at 462, Francis v Lyon [1907] HCA 12; (1907) 4 CLR 1023 at 1040]. The basis for this rule is historical rather than logical. Lord Diplock once described it as a legacy of the system of trials by juries who might not all be literate.
[703] Construction and intention. The primary 'object' of construction is to determine what is the intention of the parties. Thus, when a court construes a contract it does so in order to determine and give effect to the intention of the parties.
Intention may be actual, expressed or implied. 'Actual' intention is the intention subjectively (actually) held by the parties. 'Expressed' intention is the intention disclosed in the words of the contract. 'Implied' (or inferred or imputed) intention is the intention which is attributed to the intention of the parties. ...
When it is said that construction depends on the "intention" of the parties it is clear that the word is being used objectively. "Intention" therefore refers to expressed intention, to be ascertained from the words used. [Goldsborough Mort & Co Ltd v Carter [1914] HCA 80; (1914) 19 CLR 429 at 447]. Accordingly, references to intention are not to the parties' actual intentions, still less to their desires, aspirations or expectations [Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 at 352-353]. Where no intention is expressed, intention must be determined by implication. It will be implied, inferred or imputed on the basis of the words used, read in context and in the light of principles of contract law. This is an objective inquiry, generally based on the meaning or legal effect which a reasonable person in the position of the party to whom the words were addressed would regard as the other party's intention."
(emphasis added.)
"This Court, in Pacific Carriers Ltd v BNP Paribas [(2004) [2004] HCA 35; 78 ALJR 1045; 208 ALR 213] has recently reaffirmed the principle of objectivity by which the rights and liabilities of the parties to a contract are determined. It is not the subjective beliefs or understandings of the parties about their rights and liabilities that govern their contractual relations. What matters is what each party by words and conduct would have led a reasonable person in the position of the other party to believe. References to the common intention of the parties to a contract are to be understood as referring to what a reasonable person would understand by the language in which the parties have expressed their agreement. The meaning of the terms of a contractual document is to be determined by what a reasonable person would have understood them to mean. That, normally, requires consideration not only of the text, but also of the surrounding circumstances known to the parties, and the purpose and object of the transaction [Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; (2004) 78 ALJR 1045 at 1050-1051 [22]; [2004] HCA 35; 208 ALR 213 at 221]."
(emphasis added.)
(1) as early as her first interaction with the Builder, she made it abundantly clear that she was relying on the Builder's expertise: "I am looking for someone to fix the moisture problem in my wall";
(2) she also asked a representative of the Builder "So does it look like this moisture problem can be fixed? Because I'm concerned about the damp, its not healthy. Also I would love to have this wall nice and repaint it, but there's not much point until the moisture issue is addressed";
(3) there was no carve out to this stated purpose, allowing the Builder to remedy only part of the wall. The Homeowner simply wanted the moisture problem in her wall fixed;
(4) the Builder's focus on the Homeowner's online enquiry "Have rising damp and damaged walls. House is very old. Needs damp course and walls then repaired. I would like a quote and preferably for work to be done sooner rather than later", suggests that she was not "in truth some lay residential homeowner but rather, a person who had a requisite degree of knowledge such that she could discern between the different methods of waterproofing and their effect";
(5) such a suggestion was "frankly farcical", and the attempt to infer knowledge on the Homeowner ought to be construed for what it really is, "an attempt to render nugatory, or limit the effect of, ss 18B and 18F" of the HB Act.
"entered into a contract with [the Homeowner] for defined (and confined) rising damp repair works, for a modest price of $4,785 (being the DampBlock Contract). [The Homeowner] is now effectively trying to hold [the Builder] responsible for numerous pre-existing (and indeed unidentified) issues, not only with her property but also with the property next door, and to claim an extraordinary amount of money from [the Builder] for these things. The basis for such extraordinary claims remains elusive. There does not appear to be any suggestion that [the Builder] caused any of those issues, but rather, that it was part of [the Builders] contractual scope to fix them."
(1) erred in a principle of construction;
(2) failed to "integrate" HB Act warranties; and
(3) asked the wrong question.
"There is ample authority that remedial legislation, such as that found here, is to be accorded "a fair, large and liberal" interpretation rather than one which is "literal or technical"."
"Legislation rarely pursues a single purpose at all costs. Where the problem is one of doubt about the extent to which the legislation pursues a purpose, stating the purpose is unlikely to solve the problem. For a court to construe the legislation as though it pursued the purpose to the fullest possible extent may be contrary to the manifest intention of the legislation and a purported exercise of judicial power for a legislative purpose."
(emphasis added.)
Beneficial legislation
75 ... the exemption can be seen to be beneficial legislation. ...
76 While primacy must be given to the text, context and purpose of the WC Act and a court needs to be cautious about a priori assumptions based on its character or legislative history, the exemption attracts the principle stated by Deane J and Gaudron J (although in dissent on the facts) in Bird v The Commonwealth (1988) 165 CLR 1; [1988] HCA 23 at 9 "that workers compensation legislation is remedial in its character "and, like all such Acts, should be beneficially construed". Their Honours continued (at 9):
'The 'established principle' was correctly identified by Fullagar J in the course of his dissenting judgment in Wilson v Wilson's Tile Works Pty Ltd [1960] HCA 63; 104 CLR 328 at 335: "where two constructions of a Workers' Compensation Act are possible that which is favourable to the worker should be preferred". "If a person or a case falls within the general spirit of such remedial legislation, and there are two possible interpretations, the courts ought not construe the Act so as to exclude that person or case".
77 The respondent submitted that the exemption is to be given the broadest meaning available consistent with the text of the provision. This submission requires some qualification. One is that the interpretation adopted must be restrained within the confines of "the actual language employed" and what is "fairly open" on the words used": Khoury v Government Insurance Office (NSW) (1984) 165 CLR 622; [1984] HCA 55 at 638. Another is that where a provision is to be given a liberal and beneficial construction, "a court or tribunal is not at liberty to give it a construction that is unreasonable or unnatural": IW v City of Perth (1997) 191 CLR 1; [1997] HCA 30 at 12 (Brennan CJ and McHugh J).
(emphasis added.)
"To begin consideration of issues of construction by positing that a "liberal", "broad", or "narrow" construction will be given tends to obscure the essential question, that of determining the meaning the relevant words used require. Although the purpose of the Act is beneficial, it does not follow that recovery is contemplated for every act of violence or every consequence that could be described as an injury. The numerous injuries set out in the Table to Sched 1 (which extends over twelve pages) are identified with considerable precision. The clauses in Sched 1 which precede the Table, too, are drafted with some attempt at precision. The legislation confers benefits, and no doubt it should not be construed restrictively, but in dealing with specific limited words like those of cl 5, it is not open to apply much liberality of construction. It is difficult to state the legislative purpose except at such extreme levels of generality that it is not useful in construing particular parts of the legislative language. As Spigelman CJ said "The issue before the Court is the determination of the circumstances in which compensation is payable". The legislation has endeavoured to define these circumstances in precise language which does not permit universal recovery; and hence "[t]he Court is not required to give the most expansive possible interpretation of such circumstances".
(emphasis added.)
"This Court, in Pacific Carriers Ltd v BNP Paribas, has recently reaffirmed the principle of objectivity by which the rights and liabilities of the parties to a contract are determined. It is not the subjective beliefs or understandings of the parties about their rights and liabilities that govern their contractual relations. What matters is what each party by words and conduct would have led a reasonable person in the position of the other party to believe. References to the common intention of the parties to a contract are to be understood as referring to what a reasonable person would understand by the language in which the parties have expressed their agreement. The meaning of the terms of a contractual document is to be determined by what a reasonable person would have understood them to mean. That, normally, requires consideration not only of the text, but also of the surrounding circumstances known to the parties, and the purpose and object of the transaction."
(1) this warranty, like others in s 18B, must be construed beneficially to afford proper protection to the Homeowner;
(2) the interpretation of this provision, particularly the qualifying phrase "to the extent of the work conducted," is a question of law;
(3) the Tribunal erred at [61] by adopting an interpretation that renders the warranty practically ineffective. Limiting the assessment of "fitness for occupation" solely to the physical act of injection, divorced from its functional outcome or the context it addresses, is legally flawed as the warranty relates to the result of the work;
(4) the correct approach requires assessing whether the outcome achieved by the work conducted, viewed in context, contributes positively to the dwelling's fitness for occupation concerning the issue addressed. Here, the DampBlock work was conducted specifically to address pervasive moisture;
(5) the evidence established persistent, high moisture readings post-works [reading of 99.9%], rendering that part of the dwelling arguably unfit or unhealthy;
(6) work that fundamentally fails to remedy the problem it purports to fix cannot produce a result consistent with reasonable fitness for occupation, even "to the extent of the work conducted". The work, in its context, failed to achieve a result consistent with reasonable fitness for occupation.
(1) the qualification "to the extent of the work conducted" means the warranty doesn't require the contractor to fix unrelated defects, but it does require the specific work done to be effective in contributing to overall fitness regarding the issue it addressed. Oikos, referenced by the Tribunal at [18], [61] of the Primary Decision, confirms the warranty does not expand scope beyond the agreement, but it does not negate the requirement for the work agreed upon and conducted to result in fitness for occupation in relation to its purpose;[27]
(2) the Tribunal's application of Oikos at [61] of the Primary Decision misinterprets this balance and constitutes an error of law, facilitating circumvention of the HB Act's objectives.
"a warranty that, if the work consists of the construction of a dwelling, the making of alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the work will result, to the extent of the work conducted, in a dwelling that is reasonably fit for occupation as a dwelling."
(emphasis of the Builder.)
(1) the Builder's argument that the s 18B(e)[28] warranty is limited "to the extent of the work conducted" and, relying on Oikos, cannot expand the scope of works, is based on a flawed reading of both the section and the authorities;
(2) the Homeowner does not argue that s 18B(e)[29] required the Builder to fix unrelated defects. The argument, consistent with the plain words of the statute, is that the warranty requires the work that was in fact conducted to result in a dwelling that is reasonably fit for occupation, specifically concerning the very issue the work was meant to address;
(3) the work conducted was the injection of a damp-proof course to remedy a significant moisture problem. The evidence established that significant moisture issues persisted, and work that fails to remedy the problem it purports to fix cannot produce a result that is consistent with reasonable fitness for occupation;
(4) the interpretation advanced by the Builder and adopted by the Tribunal would render the warranty "toothless", as a builder could perform a completely ineffective repair and, as long as the physical actions were performed, escape liability under this section. This ignores the crucial word "result" in the section and cannot be what Parliament intended.
"[i]t is the experience of the Appeal Panel that costs decisions in the Consumer and Commercial Division and on appeal (unless dealt with at the time of the hearing) are routinely considered 'on the papers' and without a hearing. The parties were given an opportunity to provide written submissions and did so. They can be presumed to have included all relevant issues in their written submissions".
(1) To the extent that the appeal raises questions of law, the appeal is dismissed.
(2) The respondent is to file and serve any application for costs and submissions (and if necessary evidence) on or before 14 days from the date of these orders.
(3) The appellant is to file and serve any submissions in reply (and if necessary evidence) on or before 28 days from the date of these orders.
(4) The respondent may file and serve any reply on or before 35 days from the date of these 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.
[5] At a directions hearing of the Appeal Panel on 16 April 2025; see direction (3).
[6] Presumably a typographical error, the correct date being 1 February 2022.
[7] Presumably a typographical error, the correct dates being respectively 1 February and 2 February 2022.
[21] Emphasis of Mr Keene, closing submissions, 7 June 2024, p 602 of the Court Book.
[22] Closing submissions to the Tribunal, 5 July 2024 at [2] (Court Book at [2]).
Miles
Buildfix Group Pty Ltd [2025] NSWCATAP 260;
(2004) 139 FCR 147
(1997) 191 CLR 1
(1988) 13 NSWLR 315
(2013) 42 VR 456
(2004) 219 CLR 165
(2001) 109 FCR 564
(1996) 186 CLR 389
(2001) 202 CLR 439
(1980) 144 CLR 1
(1956) 94 CLR 509
(1907) 4 CLR 1023
(1914) 19 CLR 429
(1982) 149 CLR 337
(2004) 78 ALJR 1045
(1988) 165 CLR 1
(1984) 165 CLR 622