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Domestic Building Contracts Act 1995
50AProceedings and costs
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50A Proceedings and costs
S. 50A(1) amended by No. 17/2025 s. 18.
(1) If the Authority institutes or defends proceedings on behalf of a building owner under section 50—
S. 50A(1)(a) amended by No. 17/2025 s. 18.
(a) the Authority may settle the proceedings either with or without obtaining judgment in the proceedings; and
S. 50A(1)(b) amended by No. 17/2025 s. 18.
(b) if a judgment is obtained in the proceedings in favour of the building owner, the Authority may take any steps that are necessary to enforce the judgment; and
(c) subject to subsections (2) and (3), an amount (other than an amount in respect of costs) recovered in the proceedings is payable to the building owner; and
S. 50A(1)(d) amended by No. 17/2025 s. 18.
(d) an amount in respect of costs recovered in the proceedings is payable to the Authority; and
(e) subject to subsection (2), the building owner is liable to pay an amount (not being an amount of costs) awarded against the building owner in the proceedings; and
S. 50A(1)(f) amended by No. 17/2025 s. 18.
(f) the Authority is liable to pay the costs of, or incidental to, the proceedings that are payable by the building owner.
S. 50A(2) amended by No. 17/2025 s. 18.
(2) If the Authority institutes, defends or continues proceedings on behalf of a building owner after the building owner withdraws the consent to the proceedings—
S. 50A(2)(a) amended by No. 17/2025 s. 18.
(a) the Authority must compensate the building owner for—
(i) any loss suffered as the result of the loss of any settlement offer made to the building owner; and
(ii) out-of-pocket expenses incurred by the building owner during the proceedings after the withdrawal of consent; and
S. 50A(2)(b) amended by No. 17/2025 s. 18.
(b) the Authority is liable to pay any amount awarded against the building owner in the proceedings.
S. 50A(3) amended by No. 17/2025 s. 18.
(3) If the Authority institutes, defends or continues proceedings on behalf of a building owner after the building owner withdraws the consent to the proceedings or defence, any amount recovered in the proceedings (including any amount for costs) that exceeds the amount payable to the building owner under subsection (2) may be applied to the payment of the costs of and incidental to the proceedings for which the Authority is liable or that are incurred by the Authority in relation to the proceedings.
S. 50A(4) amended by No. 17/2025 s. 18.
(4) If, in proceedings instituted or defended on behalf of a building owner under section 50—
(a) a party to the proceedings files a counterclaim; or
(b) the building owner is entitled to file a counterclaim—
and the counterclaim is not or would not be related to the proceedings and to the interests of the building owner in the dispute, the Authority may apply to the court hearing the proceedings or to VCAT for an order that the counterclaim not be heard in the course of those proceedings.
(5) If the court or VCAT makes an order under subsection (4), the court or VCAT may make any ancillary or consequential orders that it considers fair.