QBSA v The Proprietors of "The View" [1998] QCA 401

"`the Residential Construction Work' means major domestic building work -

(a) consisting of the construction of a home or a roofed building on the site of a home (other than a home or building that is a multiple dwelling of more than 3 storeys); or

(b) consisting of an alteration or addition to such a home or building affecting-

if that work is performed by a building contractor other than as a subcontractor and which is so described in the Certificate".

This definition is the same as that given for "Residential Construction Work" in s. 4 of the Regulation. There is a statutory definition of the term "major domestic building work"; it is defined to mean domestic building work exceeding a certain value and "domestic building work" means building work related to a home or associated building: see s. 4 of the Act.

4 In the reasons for judgment of the learned District Court judge, his Honour said that the word "home" in the definition "should be understood as meaning a house or building with its grounds and other appurtenances so long as they are used for residential, rather than commercial or industrial purposes". The Tribunal, on the other hand, thought the word "home" in the definition means "a house where a person lives".

5 The word "home" is not defined in the policy, but cl. 1.2 of that document says:

"Unless the contrary intention appears, wherever terms defined by the Act or the regulation appear in this Certificate, those terms have the same meaning in the Certificate as in the Act or the regulations".

"any residential premises except premises constituting, or forming part of, commercial or industrial premises".

The argument for the respondent amounted in substance to this, that "premises", with reference to residential premises, includes not only the residence but the grounds and fixtures on or in them. Therefore, it was said, "home" means not only the residence but its site and what is on the site. From that, it would follow that in the definition of "Residential Construction Work" the reference to "home" includes the site and that brings in the disputed objects: the retaining walls, roadways, paths and pool. Counsel for the Authority, on the other hand, urged on us the view that the word "home" in the definition of "Residential Construction Work" must mean simply a residence. The consequence of acceptance of that view would be that the policy relates only to loss suffered because of failure to rectify defects in the residence or residences insured, as well as any defects in any roofed building on the site occupied by such residence or residences.

6 An initial difficulty for the respondent is that the expression "home or . . . roofed building", read naturally, conveys the idea that the only thing covered by the policy, apart from the residence itself, is a roofed building on the site of the residence. Counsel for the respondent, however, argued that the reason for the choice of language in the definition of "Residential Construction Work" was that it was intended to cover, in addition to the residence and unroofed structures on its site, roofed buildings of a non-residential character on the site. An example mentioned was a professional office, built on the site; because of the definition of "major domestic building work", referred to above, such an office would have to be an "associated building" - i.e. a building associated with a home.

7 One reason for concluding that non-residential buildings were not what the drafter had in mind is that it is not common to find on the same site a residence or group of residences and a separate, commercial or professional, building. Another is that it is difficult to think of any sensible reason why it should have been thought proper to cover certain commercial or professional buildings but not others. A third is that if the intention was to cover not only residences but also certain commercial or professional buildings one would have expected that intention to be more explicitly stated. A fourth is that it is not easy to understand in what sense a commercial building could be said to be "associated" with a home.

8 It was said accurately on behalf of the Authority that if the word "home" in the definition itself includes the home's site, then the expression "on the site of a home" is inappropriate. The use of that expression is consistent with the drafter having taken the word "home" to refer only to the residence, not its site, and is irreconcilable with the interpretation put forward by the respondent.

9 The respondent's argument depended upon giving to the word "premises" which is in the definition of "home" in the Act, a meaning including "all land enclosed with a building and used as one with it for the purposes for which the building is used": R v. City of Moorabbin; ex parte Kans Food Products Pty Ltd [1954] VicLawRp 65; [1954] V.L.R. 465 at 474. That or something like it is the ordinary meaning of the word, at least in a legal context, but the statutory definition of "home" only applies to the policy if no contrary intention appears.

10 Here, in our view, applying the statutory definition so that any object affixed to the land and associated with the residence is covered by the policy would achieve a result which is, judging from the language chosen, unlikely to have been intended. It is our opinion that the expression "home or a roofed building on the site of a home" does not include things on the site other than a home, in the ordinary sense of the word, or (other) roofed building - and any building other than the home itself would have to be one associated with the home.

11 There was some discussion about marginal cases such as sewerage connections, but it is unnecessary comprehensively to decide all disputes likely to arise as to the meaning of the word "home" in the definition. The disputed objects were rightly held, in the Tribunal's decision, to be excluded from the policy cover.

2. Set aside orders made by the District Court, except that giving leave to appeal.

3. Order in lieu that the appeal to that Court be dismissed with costs.