[2025] WASAT 83
General information, not legal advice.
State Administrative Tribunal (WA)
2026-01-13
Original judgment source is linked above.
(a) in respect of the HBWC complaints, the first respondent and the third respondent must pay compensation to the applicants in the amount of $42,158.06, on the basis that those respondents are jointly and severally liable for that amount; and
(b) in respect of the building service complaints found by the Tribunal to have been substantiated by the applicants, the first respondent and the third respondent must pay to the applicants the costs of remedying those complaint items in the amount of $9,884.85, on the basis that those respondents are jointly and severally liable for that amount.
(a) by 8 September 2025, the applicants were to lodge with the Tribunal and give to the respondents any outline of submissions in respect of any costs application by them in respect of these proceedings, setting out the basis for any costs order and the quantum of costs being claimed;
(b) by 29 September 2025, the respondents were to lodge with the Tribunal and give to the applicants any outline of submissions in opposition to the costs order sought by the applicants; and
(c) unless otherwise ordered by the Tribunal, any application for costs shall be determined on the documents.
(a) on 8 September 2025, the applicants' submissions on costs which also expressly refer to and rely upon the applicants' written submissions lodged on 16 April 2025;
(b) on 15 September 2025, a short affidavit sworn by Mr Vozza on 12 September 2025, to which was annexed copies of a number of invoices issued to the applicants by the legal practice MGD Law;
(c) on 29 September 2025, the third respondent lodged submissions as to costs on behalf of the second, third and fourth respondents; and
(d) also on 29 September 2025, the third respondent lodged a bundle of documents comprising 321 pages of material and with the file name of the document describing it as 'Attachment B to Costs Submissions'.
Principles applicable to costs of building disputes in the Tribunal
(1) Subject to this section, the Building Commissioner or the State Administrative Tribunal may make such orders for costs as they think fit in relation to proceedings arising from a building service complaint or a HBWC complaint.
(1) The discretionary power is to be exercised judicially; that is not arbitrarily, capriciously, or so as to frustrate the legislative intent;
(2) The power to award costs is to be exercised if it is fair and reasonable in all the circumstances of the case to do so;
(3) The onus is on the party seeking an order in its favour to establish that a favourable order ought to be made;
(4) Every party to proceedings before the Tribunal is taken to be cognisant of the objectives of the Tribunal as expressly provided for in s 9 of the SAT Act. It is therefore necessary for the applicant to establish that the respondent's conduct has impaired the attainment of the Tribunal's objectives to have the proceedings determined fairly and in accordance with the substantial merits, with as little formality and technicality as possible and in a way which minimises the costs to the parties; and
(5) The mere fact that a party ultimately fails on a contention advanced during the course of the hearing does not, in itself, signify that the party has acted inconsistently with the objectives set out in s 9 of the SAT Act.
(a) they were legally represented in the proceeding from its commencement in the Tribunal in November 2023 through to 30 December 2024;
(b) from 30 December 2024, the applicants chose to be self-represented due to the financial burden of legal costs;
(c) as at the date of those submissions, the applicants' legal costs were approximately $64,090.30 including both GST and also including work in progress at that date;
(d) the Tribunal ought to make a costs order in favour of the applicants, including as a result of the following conduct of the respondents:
(i) the proceedings having been delayed and drawn out as a result of substantial material having been filed by the respondents containing irrelevant content and unfounded allegations against the applicants;
(ii) directions hearings being substantially longer than ought to have been necessary as a result of the conduct of the respondents at those hearings;
(iii) the approach of the respondents in respect of their association with each other requiring the applicants to apply for disclosure of documents by the respondents; and
(iv) the respondents maintaining positions that were ultimately untenable in light of the evidence before the Tribunal including, in some cases, the evidence of the respondents themselves.
(a) throughout the proceeding, including throughout the final hearing, the respondents maintained positions in respect of the primary contractual documents that were ultimately found by the Tribunal to not be credible;
(b) that the respondents tailored their evidence to suit their position, rather than conceding obvious points;
(c) that Mr Forte only made a belated concession regarding the correct signing date of the $118,000 lump sum contract in his written closing submissions, lodged after the final hearing, and that HDG has never made such a concession and it's maintained position was found by the Tribunal to not be credible;
(d) that the respondents maintained throughout the proceeding their positions as to Mr Forte's limited role in the project and there being no commercial or business association between the respondents, which necessitated the applicants, through the lawyers then acting for them, having to seek from the Tribunal orders requiring the production of documents by the respondents
(e) despite the order for production of documents, and the documents that were ultimately before the Tribunal, the respondents continued to deny and conceal the true nature of their association;
(f) the Tribunal ultimately found that Mr Forte was an undisclosed principal under the $295,000 lump sum contract and that Mr Forte and HDG had devised a scheme to jointly construct the applicants' home on terms they had agreed between themselves but not disclosed to the applicants;
(g) that, in the applicants' submission, the respondents maintained the façade of their position that they had no business or commercial association vexatiously and deliberately; and
(h) the conduct of the respondents amplified the costs, time and resources consumed in the proceedings to the detriment of the applicants and contrary to the objections of s 9 of the SAT Act.
(a) the affidavit is made in support of the applicants' application for costs; and
(b) the annexure to the affidavit comprises true copies of invoices for legal costs incurred by the applicants in relation to these proceedings totalling the sum of $44,729.20.
(a) invoice dated 4 March 2024 in the sum of $9,259.00 (including GST and disbursements) for work undertaken in the period from 20 November 2023 to 1 March 2024;
(b) invoice dated 24 November 2024 in the sum of $11,954.40 (including GST and disbursements) for work undertaken in the period from 8 March 2024 to 13 June 2024; and
(c) invoice dated 6 July 2025 in the sum of $23,515.80 (including GST) for work undertaken in the period from 26 July 2024 to 15 April 2025.
(a) the total sum of these invoices, in the amount of $44,729.20, is the full amount of costs now claimed by the applicants in this proceeding; and
(b) while the last of the above invoices includes work for a number of months after the applicants' former legal representatives lodged with the Tribunal their notice of ceasing to act on 30 December 2024, it is the applicants' position that those legal representatives continued to undertake work to assist the applicants in progressing their application.
The second, third and fourth respondents' submissions in opposition to the applicants' application for costs
(a) the findings on liability made by the Tribunal in the substantive decision are currently under appeal to the Supreme Court and the Tribunal ought to defer making any determination as to costs pending the outcome of the appeal;
(b) the conduct of the proceeding by these respondents was not inconsistent with the Tribunal's objectives;
(c) given the complexity of the matter and the background to the proceedings, including the positions of the parties in respect of the PMA (as defined in the substantive decision), the position taken by these respondents in the proceeding was reasonable and, for the purpose of costs, was reasonably arguable;
(d) that the position of these respondents was reasonably arguable is supported by the findings of a differently constituted Tribunal in Leach and Ha-DecGroup Pty. Ltd [2025] WASAT 78 that, this Tribunal understands, may have involved similar contracting arrangements including a project management agreement between Mr Forte and the relevant homeowners in that matter; and
(e) alternatively, to the above matters, that in respect of the costs incurred by the applicants:
(i) a significant amount related equally to proceedings in the Magistrates Court involving some of the same parties;
(ii) a significant amount related equally to the first respondent, HDG;
(iii) some amount related solely to the first respondent; and
(iv) some of the costs are excessive, extraneous or unproven in connection to this proceeding.
(a) the respondents maintained positions in respect of their contended version of the contractual arrangements that were not supported by any credible evidence;
(b) it delayed the progress and timely resolution of the proceeding; and
(c) it was contrary to the objective of the Tribunal to act as speedily as is practicable and to minimise the costs to the parties.
(a) the respondents had devised a scheme to jointly construct the applicants' home on terms they had agreed between themselves but not disclosed to the applicants;
(b) the true contractual arrangements, as supported by the documentary evidence, was quite contrary to the position advanced jointly by the respondents; and
(c) the respondents' position in respect of, in particular, their jointly contended timeline for the contractual arrangements was not supported by any credible evidence.
(a) for the period before 1 July 2024, only marginally higher than the relevant scale costs of $429 (inclusive of GST);[6]
(b) from 1 July 2024, less than the relevant scale rate of $484 (inclusive of GST).[7]
(a) the Tribunal does not start from a position that the successful party ought to be awarded costs and instead the applicant for costs bears the onus of establishing that a costs order should be made;
(b) while the proceeding was complex and the position taken by the respondents served to prolong the proceedings, it was also incumbent upon the applicants to seek to progress their application in the most efficient manner and the record of this proceeding, including the seeking of extensions of time from all parties to comply with orders and the protracted process of the parties' documentary evidence being finalised is indicative of a degree of inefficiency on the part of the applicants;
(c) the invoices relied upon by the applicants include a variety of items that should properly be regarded as solicitor-client costs and not recoverable against any of the respondents, even in the circumstances determined in the substantive decision;
(d) no discounting is proposed in respect of the total amounts of the invoices from the applicants' former legal representatives, including to take account of work that could properly have been undertaken at a lower rate, work that is properly considered to be solicitor-client related tasks and the potential that at least some amount of the work could have related to issues outside that necessary to be progressed as part of the Tribunal proceeding;
(e) at least for some of the period covered by the invoices, the hourly rate charged was in excess of that applicable to a senior practitioner under the relevant determination; and
(f) while the applicants were substantially successful in the substantive decision, they did not succeed in all respects, particular with regard to the compensation sought by them.
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
[1] These supplementary reasons should be read with the substantive decision and terms defined in the substantive decision are used in these reasons.
[2] See in particular Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92 (S) (Hippydayze (S)) at [4] to [12] and Gileno and Riviera Homes (WA) Pty Ltd [2018] WASAT 48 (S) (Gileno).
[3] See in particular the substantive decision at [97].
[4] Substantive decision at [186] to [194].
[5] Substantive decision at [63], [88], [91].
[6] Based upon the Legal Profession (State Administrative Tribunal) Determination 2022 (WA).
[7] Based upon the Legal Profession (State Administrative Tribunal) Determination 2024 (WA).
Deshmukh and Distinctive Building Services Pty Ltd [2024] WASAT 62
Gileno and Riviera Homes (WA) Pty Ltd [2018] WASAT 48 (S)
Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92 (S)
Leach and Ha-DecGroup Pty. Ltd [2025] WASAT 78