[2019] VCAT 671
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2019-05-10
Mr J
Original judgment source is linked above.
Domestic building - application for joinder -Wrongs Act 1958 - s23B and - claim for contribution is not a defence - whether arguable that architect and subcontractor are concurrent wrongdoers - joinder considerations
Equiset Construction Melbourne Pty Ltd (ACN: 127 493 136)
Owners Corporation 1 Plan No PS63800J v Equiset Construction Melbourne Pty Ltd (Building and Property) [2019] VCAT 671
(a) a claim for economic loss or damage to property in an action for damages (whether in tort, in contract, under statute or otherwise) arising from a failure to take reasonable care;
(1) A concurrent wrongdoer, in relation to a claim, is a person who is one of 2 or more persons whose acts or omissions caused, independently of each other or jointly, the loss or damage that is the subject of the claim.
(2) For the purposes of this Part it does not matter that a concurrent wrongdoer is insolvent, is being wound up, has ceased to exist or has died.
(1) In any proceeding involving an apportionable claim -
(a) the liability of a defendant who is a concurrent wrongdoer in relation to that claim is limited to an amount reflecting that proportion of the loss or damage claimed that the court considers just having regard to the extent of the defendant's responsibility for the loss or damage; and
(b) judgment must not be given against the defendant for more than that amount in relation to that claim.
(3) In apportioning responsibility between defendants in the proceeding the court must not have regard to the comparative responsibility of any person who is not a party to the proceeding unless the person is not a party to the proceeding because the person is dead or, if the person is a corporation, the corporation has been wound-up.
(1) The Tribunal may order that a person be joined as a party to a proceeding if the Tribunal considers that -
(a) The person ought to be bound by, or have the benefit of, an order of the Tribunal in the proceeding; or
(b) the person's interests are affected by the proceeding; or
(c) for any other reason it is desirable that the person be joined as a party.
(2) The Tribunal may make an order under sub-section (1) on its own initiative or on the application of any person.
In considering any application for joinder where proposed Points of Claim have been filed, the Tribunal must be satisfied that they reveal an 'open and arguable' case (Zervos v Perpetual Nominees Limited [2005] VSC 380 per Cummins J at paragraph 11).
To show that there is an open and arguable case against a proposed joined party it is necessary to plead facts and law that support a successful case without proving the facts - to demonstrate a prima facie case. Nevertheless, it is not sufficient to merely assert the facts without demonstrating how those facts are supported.
... On an application such as this, the [applicants for joinder] need only establish that the proposed pleadings contain factual allegations which, if established at trial, could arguably found one or more of the causes of actions alleged.
Similarly, in Suncorp Metway Pty Ltd v Panagiotidis,[8] Associate Justice Evans cited with approval the observations of Pagone J in Solak v Bank of Western Australia,[9] as to the proper approach in determining whether or not a proceeding relates to an apportionable claim under Part IVAA and similar regimes, as follows:
The factual precondition to the operation of the relevant statutory regimes does not depend upon how a claim is pleaded but whether the statutory precondition exists, namely whether the claim arises from a failure to take reasonable care. In Dartberg Pty Ltd v Wealthcare Financial Planning Pty Ltd [2007] FCA 1216; ((2007) [2007] FCA 1216; 164 FCR 450) Middleton J said that the words arising from the failure to take reasonable care should be interpreted broadly (ibid) [29]. In my view the State regimes providing for the apportionment of liability between concurrent wrongdoers require a broad interpretation of the condition upon which the apportionment provision depends to enable courts to determine how the claim should be apportioned between those found responsible for the damage. The policy in the legislation is to ensure that those in fact who caused the actionable loss are required to bear the portion of the loss referable to their cause. That task ought not to be frustrated by arid disputes about pleadings. [my emphasis]
Is it arguable that the architect is a concurrent wrongdoer?
('the specified manner') [I am satisfied this allegation is clear]
Is it arguable that the contractor is a concurrent wrongdoer?
all of which obligations, the builder alleges the contractor breached in carrying out the subcontract works. In support of these allegations the builder refers to expert reports prepared by Mr P Smithson of BG&F Facade and by Mr P Naughton who, the builder says, opine that the design and/or installation of the Approved Louvres is defective (details of the defects are set out in the particulars to paragraph 46)
(all of which for the ease of reference, I will refer to as the 'manner specified', consistent with the builder's allegations without referring each time to paragraph 60(c)).
[2] Barbon v West Ho0mes Australia Pty Ltd [2001] VSC 405, Age Old Builders Pty Ltd v Swintons (2003) 20 VAR 200; [2003] VSC 307 at [90]
[3] Perry v Binios trading as Building Inspirations of Australia [2006] VCAT 1922 at [11]
[8] [2009] VSC 126 at [20].
[9] [2009] VSC 82 at [35].
[12] LU Simons Builders Proprietary Limited v Allianz Australia Insurance Ltd [2013] VCAT 468
Owners Corporation 1 Plan No PS63800J
Equiset Construction Melbourne Pty Ltd