[2024] VCAT 1019
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2024-10-28
Ms J
Original judgment source is linked above.
Re Contract dated 6 February 2019 for purchase of a home in Ringwood to be relocated and re-erected for $140,250 including GST
Balance of contract price - $44,923.50 (balance of 3rd instalment - $37,909.50 plus balance of final instalment - $7,014)
Cost to substitute Barkly contract for Nepean contract - $15,000
Increased cost to complete building work - $234,358.40
Delay damages - $86,500 (173 weeks x $500 per week)[3]
Amount Paid under the Amended Barkly Contract
How much is owing to the Builder under the Amended Barkly Contract?
Is the Builder liable for any damage to the Owner's driveway?
Who is responsible for the delay in completion of the re-erection works?
To whom it may concern
This matter has now been referred to the DBDRV for various reasons, regarding several issues which (may) be governed under consumer / contract / common / building and/or other law.
Communication was expected in writing by 17 August 2019, after the on-site meeting on 12 August 2019, as promised by Moving Views P/L, however once again there has been zero contact since.
This is not the first occasion of a complete lack of contact or any level of customer service, from you.
From the beginning this whole venture has proven to be an unimaginable nightmare once the initial deposit of 15% was paid to you for "The Nepean", on 21/12/18, and the contract had been signed.
On several occasions you had been emailed to clarify issues concerning your level of customer service, your contract and its contents, invoices sent and payments requested, and other questionable interactions/practices since the start.
Taking into consideration the history of ongoing issues dating back to December 2018, and the fact various situations that have arisen from this are hugely impacting on every aspect of life, on legal advice the matter has been lodged with the DBDRV so that a satisfactory outcome will be reached.
The DBDRV has considered this carefully and the case has since been placed on the urgent list.
It is disappointing to see that either George or Carmen did not find it important to get in touch themselves when they are very aware of my situation, when they are very quick and persistent to be in touch when money is concerned as has been evident from day 1.
Not at any time did I fail to meet my obligations as the customer/consumer/"owner builder" Please direct all correspondence and communication regarding this via email only from now on. Sincerely
Loraine Hoo
Were the re-erection works carried out by the Builder defective?
Inadequate sub-floor clearance - removal of sub-floor debris and levelling the ground
What is the status of the Record of Agreement?
46G Notice of failure to comply with conciliated agreement
(1) A party to a domestic building work dispute may give written notice to the chief dispute resolution officer if an action recorded in a record of agreement for the dispute has not been taken within the time specified in the record of agreement.
...
46H Notice of non-compliance with conciliated agreement
(1) If, on receiving a notice under section 46G, the chief dispute resolution officer determines that the action was not taken within the specified time⎯
(a) the record of agreement ceases to have effect; and
...
There are three main objectives of the award of interest. First, as compensation to the judgment creditor for being out of the funds from the date of commencement of the proceeding until judgment; secondly, to deter judgment debtors from delaying proceedings and thereby having the use of the money for a long period; and finally, to encourage defendants to make realistic assessments of their liability in a case and to take bona-fide steps to compromise the claim.
[1] Paras. 22 - 29 of Points of Claim dated 24 November 2020 ('PoC').
[2] Amended Points of Counterclaim dated 12 October 2021 ('APoCC').
[3] Pages 8 to 11 inclusive of APOC/C. In her Explanation of Costs and Damages dated 22 March 2022, the Owner reduces the amount of damages claimed to $328,634.70 - notably, the cost to rectify and complete the building work is reduced to $148,014.90 and delay damages are reduced to $60,000, but interest of $31,230 is claimed.
[4] Clauses 2A and 2B and Items 8 & 10 of the Schedule of the Amended Barkly Contract.
[16] Text messages dated 19 to 20 June 2019 (TB 469).
[18] Email from the Owner to Mr Schembri on 24 June 2019 (TB 471-472); see also GS Statement [22] (TB 52).
[25] February T227.04-12 (evidence of Mr Schembri).
[27] That is, the document at TB 457-468.
[28] See item 5 of the Schedule to the original Barkly Contract (TB 386).
[29] The GST inclusive price is listed at item 5 to the Schedule of the Amended Barkly Contract (TB 462).
[30] See online payment records dated 21 December 2018 (TB 319) and 23 December 2018 (TB 320), together with receipt provided by Moving Views on 26 December 2018 (TB 321).
[34] The original invoice is at TB 425; the cancellation is recorded in a handwritten note on the invoice at TB 429; see also CS Statement [21] (TB 67).
[44] Planning permit attaching stamped plans (TB 473-478).
[51] 12 August Recording at approximately 25:59 to 26:20.
[60] Clause 1D of the Amended Barkly Contract.
[61] See February T247.15-30 and T249.12-22 (cross-examination of Mr Schembri).
[72] See, eg, February T355.04-12 (cross-examination of Mr Brownhill); February T376.10-17 (evidence of Mr Forsyth and Mr Brownhill); February T377.20-26 (evidence of Mr Forsyth and Mr Brownhill); February T380.26-30 (evidence of Mr Forsyth).
[80] TB 36-42. This document was filed pursuant to paragraph 4 of the Tribunal's orders dated 20 December 2021.
[90] Section 60(1) of the Supreme Court Act 1986 (Vic) ('Supreme Court Act') requires the Supreme Court in a proceeding for recovery of debt or damages to give damages in the nature of interest unless good cause is shown to the contrary.
[91] Clause 5D of the Amended Barkly Contract.
Moving Views Property Developments Pty Ltd
Hoo
(2009) 236 CLR 272
(1954) 90 CLR 613