Clark & Anor v On the Level Pty Ltd & Anor [2026] QSC 135
SUPREME COURT OF QUEENSLAND
CITATION: Clark & Anor v On the Level Pty Ltd & Anor
[2026] QSC 135
PARTIES: JONATHAN HARTLEY CLARK
(first applicant)
OLIVIA CATHERINE CLARK
(second applicant)
v
ON THE LEVEL (QLD) PTY LTD ACN 095 898 767
(first respondent)
HH (CABOOLTURE) PTY LTD ACN 062 194 861
(second respondent)
FILE NO/S:
355/25 and 104/26
DIVISION: Trial Division
PROCEEDING: Application
ORIGINATING
COURT:
Supreme Court at Rockhampton
DELIVERED ON: 15 June 2026
DELIVERED AT: Rockhampton
HEARING DATE: 9 June 2026
JUDGE: Crow J
ORDER: Paragraph 45
CATCHWORDS: PROCEDURE- PLEADINGS- STATEMENT OF CLAIM-
AMENDMENT- Where the applicants entered into a written
contract for the construction of a residential dwelling with the
first respondent- Where the second respondent was engaged
to provide engineering plans to ensure the footing and slab
complied with Australian standards due to reactive soil-
Where the applicant initially sued in QCAT for breach of
contract, negligence, and misleading and deceptive conduct-
where the application was transferred to the District Court in
Brisbane and further, the Supreme Court in Rockhampton-
whether leave should be granted to amend the pleadings of
the consolidated amended statement of claim.
Buildings Act 1975 (Qld) s10
Civil Proceedings Act 2011 (Qld) s16
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Competition and Consumer Act 2010 (Cth) sch 2 (Australian
Consumer Law) s18, s29, s236, s237
Uniform Civil procedure Rules r376
Bittun Pty Ltd v Karageozis [2026] QCA 107.
Commonwealth of Australia v Winston (2024) 116 NSWLR
111.
Devine Constructions Pty Ltd v Heinrich Constructions Pty
Ltd [2024] QSC 285.
Draney v Barry [2002] 1 Qd R 145.
Stimpson v O’Toole [2022] QCA 194.
Thomas v State of Queensland [2001] QCA 336
Menegazzo v PriceWaterhouseCooper (a firm) [2016] QSC
94.
Wardley Australia Ltd and Wardley Australia Securities Ltd
v State of Western Australia (1992) 175 CLR 515.
COUNSEL: K Holyoak on behalf of the applicants
JJT Dudley on behalf of the first respondent
MC Long on behalf of the second respondent
SOLICITORS: Grant & Simpson on behalf of the applicants
Axis Litigation on behalf of the first respondent
Boss Lawyers on behalf of the second respondent
[1] The applicants, Mr & Mrs Clark, entered into a written contract for the construction
of a residential dwelling on 16 December 2013. The contract was entered into with
the first respondent, On the Level (Qld) Pty Ltd (“OTL”) for the construction of a
residential home in Roma. The contract provided for the footing to be prepared with
in accordance with an engineer’s plan to a soil classification of E-D.
[2] A soil classification of E-D meant the soil at the property was extremely reactive and
therefore may cause extreme amount of ground movement. The builder engaged an
engineer, the second respondent HH (Caboolture) Pty Ltd (“HHC”) to provide
engineering plans including a footing and slab layout plan. The engineer HHC
prepared the plans, which for the soil classification of E-D required the footing and
slab to comply with Australian Standard AS 2870-2011.
[3] Mr Hendriks, engineer of HHC, signed a Form 15 compliance certification for
building design specification on 12 August 2014. That Form 15 certified the footing,
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slab and frame and certified they complied, inter alia, with AS 2870-2011.
Mr Hendriks was carrying out a building certifying function as defined under s 10 of
the Building Act 1975 and he gave “a certificate in the approved form for the stage of
the building works, that is, after excavation of a foundation material and before the
footings for the building are laid…”
[4] On 21 October 2014, Mr Hendriks gave a Form 16 inspection certificate under the
Building Act 1975 certifying that the footing and slab had met the requirements of the
soils report, that is, for an E-D classification and met the requirement for the
engineering plan designed for an E-D soil classification.
[5] On 1 April 2015, the builder issued a Form 1 certificate of occupancy for the
dwelling. On 23 April 2015, Mr & Mrs Clark paid the builder all monies owing under
the contract and took possession of the property. It was thereafter rented.
[6] Mr Clark alleges between 11 April 2016 and 18 November 2016, he observed some
small cracks in the walls of the house and that over a period of time the cracking has
progressed.
[7] On 21 July 2021, Soil Tech Testing Services issued a soil classification report for the
property classifying the soil as P-D due to the presence of uncontrolled fill underneath
the slab. On 23 August 2023, Stanford Structural issued an engineering report
identifying 43 internal cracks in the house and numerous other problems.
[8] On 25 August 2023, Mr & Mrs Clark filed an application for domestic building
dispute in QCAT that was allocated case number BDL281 suing the builder for breach
of contract, negligence and misleading and deceptive conduct.
[9] Without a hearing on the merits and after 2 ½ years that application was transferred
to the District Court at Brisbane under file number BD567 of 2026 and then on 2 April
2026 transferred to the Supreme Court at Rockhampton under file S111 of 2026.
[10] Also on 25 August 2023, Mr & Mrs Clark sued the engineer, HHC, in the District
Court at Roma under file D1 of 2023. That file was subsequently transferred to the
District Court in Brisbane under D1 of 2023 and then on 2 April 2026 transferred
from the District Court at Brisbane to the Supreme Court at Rockhampton as S108 of
2026.
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[11] On 20 December 2024, Mr & Mrs Clark issued a claim and statement of claim out of
the District Court at Roma, D3/24 against HHC seeking damages for economic loss
and property damage that became D1/2025 out of the District Court at Brisbane and
subsequently S110 of 2026 of the Supreme Court at Rockhampton.
[12] Finally, Mr & Mrs Clark again sued the builder on 20 December 2024 issuing claim
D4/24 out of the District Court at Roma on 20 December 2024. That claim became
Brisbane District Court claim D2 of 2025 and subsequently Rockhampton Supreme
Court file S109 of 2026.
[13] On 2 April 2026 I made an order transferring each of the four proceedings pending in
the District Court at Brisbane to the Supreme Court at Rockhampton and made
directions for the filing of a consolidated statement of claim.
[14] By application filed 1 May 2026, Mr & Mrs Clark applied for an order that they are
able to file and serve a consolidated amended statement of claim in the Supreme Court
and in particular that they be granted leave pursuant to s 16 of the Civil Proceedings
Act 2011 (Qld) or alternatively rule 376 of Uniform Civil Procedure Rules 1999 (Qld)
to make amendments to paragraph 49 to 63, 64-67, 68-80, 96-110 and 111 to 118 of
the draft consolidated amended statement of claim (CASOC).
[15] The first defendant raises no objections to the draft CASOC. The second defendant,
HHC, disputes only the amendments as contained in paragraphs 96-110 of the
CASOC.
[16] Paragraphs 96-110 of the CASOC seek to advance causes of action against the
engineer HHC for misleading and deceptive conduct in breach of s 18 of the
Australian Consumer Law and for misrepresentation in breach of s 29(b) and (g) of
the Australian Consumer Law. The parties refer to these causes of action as the
“representation claims”. A claim for damages under s 236 of the ACL has a six-year
period of limitation under s 237 of the ACL. As it is most undesirable to attempt to
determine any limitation questions in an interlocutory proceeding in a matter of this
nature1, both counsel for the applicant and second respondent submit that r 376 has
not been engaged.
1 Wardley Australia Ltd and Wardley Australia Securities Ltd v State of Western Australia (1992) 175
CLR 515 at 533 per Mason CJ, Dawson, Gaudron and McHugh JJ.
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[17] In cases where r 376 is engaged, there can be no recourse to the general discretion
under s 16 of the Civil Proceedings Act2. Both parties therefore submit, and I accept,
that the question to allow or disallow the amendments ought to be decided pursuant
to s 16 of the Civil Proceedings Act 2011. Section 16 provides:
16 Amendment for new cause of action or party
(1) This section applies to an amendment of a claim, anything
written on a claim, pleadings, an application or another
document in a proceeding.
(2) The court may order an amendment to be made, or grant leave
to a party to make an amendment, even though—
(a) the amendment will include or substitute a cause of action
or add a new party; or
(b) the cause of action included or substituted arose after the
proceeding was started; or
(c) a relevant period of limitation, current when the
proceeding was started, has ended.
(3) Despite subsection (2), the rules of court may limit the
circumstances in which amendments may be made.
(4) This section—
(a) applies despite the Limitation of Actions Act 1974; and
(b) does not limit section 103H.
[18] In Stimpson v O’Toole [2022] QCA 194, Bowskill CJ, Mullins JA and Boddice J said
at [38]-[40] and [50]:
“[38] Mr Grant-Taylor QC (who appears with Mr O’Sullivan of
counsel for Ms Stimpson) submits that where r 376(1) of
the UCPR did not apply to a proposed amendment, so that a
party could not proceed to add a new cause of action pursuant
to r 376, there was no scope for r 376 to operate as anticipated
by s 16(3) of the CPA and the party was entitled to have
recourse to the broad discretion conferred on the court pursuant
to s 16(2) of the CPA. Mr Diehm QC who appears on behalf of
the second respondent agrees with that construction of s 16 of
the CPA, making the submission that, as r 376 does not apply to
the addition of the new cause of action in the proceeding sought
by Ms Stimpson, there is no relevant rule that limits the
application of s 16 of the CPA.
[39] The parties note that for the same reason that r 376 does not
apply to Ms Stimpson’s application, s 16(2)(c) does not apply.
2 Stimpson v O’Toole [2022] QCA 194 at [40].
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Both parties urge the Court to exercise the general discretion
provided for in s 16(2) of the CPA in deciding whether to allow
the amendment to add the new cause of action.
[40] This construction of s 16 of the CPA advanced by both parties
must be correct. The decision of the majority in Draney was
addressed by the Legislature’s amendment of s 81 of the SCQA
to make it clear that, if the rules of court limit the circumstances
in which amendments may be made, there was not to be
recourse to s 81 when the relevant rule of court providing for
amendment to add a new cause of action or a new party applied.
If the circumstances for r 376 of the UCPR to apply (pursuant
to either r 376(1) or r 376(4)(b)) are not applicable to a particular
case, then the general discretion under s 81 (now s 16 of the
CPA) remained. It would usually be a relevant factor to take into
account in the exercise of the discretion under s 16(2) of the
CPA that r 376 of the UCPR was not applicable. How that factor
is taken into account will depend on the circumstances of the
case, so that it cannot be characterised as a factor that will affect
the exercise of the discretion in one way only or the other way
only.
[…]
[50] In accordance with Draney, the exercise of the discretion under
s 16(2) of the CPA requires the weighing up of all the relevant
factors to determine whether it is in the interests of justice to
make the order sought by an applicant. In the circumstances of
this particular case, weighing up those factors results in the
conclusion that the interests of justice favour granting the leave
to Ms Stimpson pursuant to s 16 of the CPA to amend the claim
and the statement of claim in the proceeding in the manner
shown in the drafts exhibited to her solicitor’s affidavit that was
before the primary judge.”
[19] The power to grant leave to amend a pleading to introduce a new cause of action
which is statute barred is less confined under s 16(2) of the Civil Proceedings Act
than under r 376 Uniform Civil Procedure Rules 1999 (Qld)3. Mr Holyoak who
appears for Mr & Mrs Clark submits that the applicants have shown that they ought
to be granted leave to amend their pleading to bring the representation claims as it is
in the interest of justice to do so and although the applicants are not bound by the
more confined power under r 376(4), they have met that higher standard. Mr Holyoak
submits that even though it cannot be shown that the representation claims are out of
time, it can be shown that they arise out of substantially the same facts as the existing
causes of action.
3 Hyacinth Developments Pty Ltd v Scenic Rim Regional Council & Ors [2018] QSC 230 per Douglas J
at [32]-[33].
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[20] In Draney v Barry [2002] 1 Qd R 145 at 146, Thomas JA, with whom McMurdo P
agreed, said:
“[57] Rule 376 provides a structure within which courts may regulate
such procedural applications with due regard to the interests of
all parties. Sub- rule (4), which is directly relevant in the present
context, allows a fairly wide discretion in that the court will not
allow such an amendment unless it considers it “appropriate” to
do so and also considers that the new cause of action arises at
least substantially out of the same facts as the existing cause of
action. I do not think that “substantially the same facts” should
be read as tantamount to the same facts, and consider that the
need to prove some additional facts is not necessarily fatal to a
favourable exercise of discretion under r. 376(4). If the
necessary additional facts to support the new cause of action
arise out of substantially the same story as that which would
have to be told to support the original cause of action, the fact
that there is a changed focus with elicitation of additional details
should not of itself prevent a finding that the new cause of action
arises out of substantially the same facts. In short, this particular
requirement should not be seen as a straitjacket.”
[footnotes omitted]
[21] In Thomas v State of Queensland [2001] QCA 336, the Court said at [19]:
“[19] That may be thought to encourage a fairly broad brush
comparison between the nature of the original claim and that to
which it is sought to be amended. It accords we think with
Thomas JA's statement in Draney v Barry which might usefully
be repeated here.
"I do not think that 'substantially the same facts' should be read
as tantamount to the same facts, and consider that the need to
prove some additional facts is not necessarily fatal to a
favourable exercise of discretion under R376(4). If the
necessary additional facts to support the new cause of action
arise out of substantially the same story as that which would
have to be told to support the original cause of action, the fact
that there is a changed focus with elicitation of additional details
should not of itself prevent a finding that the new cause of action
arises out of substantially the same facts. In short, this particular
requirement should not be seen as a straitjacket."
Of course "the story" is a shorthand reference to the matters that
the plaintiff has to prove. If it had to be proved, for example,
that the road should have been differently constructed in the
1940s there would not only be a different case (i.e. cause of
action) there would be a substantial difference in the material
facts now requiring to be proved. Quite apart from this, further
consideration would have to be given to the question of
prejudice. There are therefore limits to which a broad brush
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approach can provide the necessary answer. There will
commonly be three separate questions to consider -
(a) Is there a new cause of action?
(b) arising out of substantially the same facts?
(c) prejudice.”
[footnotes omitted]
[22] Applegarth J helpfully summarised the “same story” metaphor, and the objection test
in Menegazzo v PriceWaterhouseCooper (a firm) [2016] QSC 94 at [48]-[50]:
“[48] The words “substantially the same facts” should not be read as
tantamount to the same facts. The rule presupposes the addition
of facts in an amended pleading in support of a new cause of
action. As Thomas JA observed in Draney v Barry:
“If the necessary additional facts to support the new cause of
action arise out of substantially the same story as that which
would have to be told to support the original cause of action, the
fact that there is a changed focus with elicitation of additional
details should not of itself prevent a finding that the new cause
of action arises out of substantially the same facts. In short, this
particular requirement should not be seen as a straitjacket.”
The story metaphor in this passage has proven a useful and
enduring one. However, as the Court of Appeal constituted by
McMurdo P, Thomas JA and Holmes J (as her Honour then was)
observed in Thomas v State of Queensland, the “story” is a
shorthand reference to the matters that the plaintiff has to prove.
Some authorities may be thought to encourage “a fairly broad
bush comparison between the nature of the original claim and
that to which it is sought to be amended”. However, as Thomas
v Queensland exemplifies, on occasions a judge can use “rather
too broad a brush”.
[49] Depending upon the circumstances of the particular case, an
amendment which sets out a different breach of duty may not
be within the scope of r 376(4)(b). One possible inquiry in
assessing whether the new cause of action arises out of
substantially the same facts is to consider what would have
happened if, at trial, the plaintiff sought to lead evidence of the
facts without having made the amendment. If the evidence
would clearly be objectionable on the ground of surprise or on
the ground that it was simply irrelevant to the case raised by the
plaintiff’s pleading, then this may assist in determining whether
the requirement of r 376(4)(b) is satisfied. In a case alleging
breaches of duty, the inclusion of additional facts which raise
quite different breaches of duty may lead to the conclusion that
the new cause of action based on the new breach of duty does
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not arise out of substantially the same facts as a cause of action
for which relief has already been claimed.
[50] The helpful test of asking whether the additional facts arise out
of “substantially the same story”, like the inquiry into what
would have happened if the plaintiff had sought to lead evidence
of the new facts without having made the amendment, are
practical tests applied in reaching a conclusion about whether
the requirement of r 376(4)(b) is satisfied. One returns to the
words of the rule: “substantially the same facts”. A question of
degree is involved.
[23] Similarly, Kelly J in Devine Constructions Pty Ltd v Heinrich Constructions Pty Ltd
[2024] QSC 285 said:
“[26] The essential question posed by r 376(4)(b) is whether the new
cause of action arises out of “substantially the same facts” as a
cause of action for which relief already has been claimed. That
question involves a “fairly broad brush comparison”, but not
one involving “too broad a brush”, between the nature of the
original claim and that to which it is sought to be amended. The
question involves matters of “impression”, and “degree”. The
answer to the question is informed by policies underlying the
applicable limitations statute. The words “substantially the
same facts” are not to be viewed as a “straitjacket”. The rule
countenances the introduction of some new facts in support of a
new cause of action, without requiring precise similarity of
factual circumstances.
[28] Another inquiry involves considering whether evidence of the
new facts would have been objectionable at a trial on the
grounds of surprise or relevance, without the plaintiff having
made the amendment. That type of inquiry was adopted by
Keane JA in Wolfe v Queensland.
[33] It may be accepted that the facts of other cases are unlikely to
be determinative, or particularly informative, about the proper
application of r 376(4) in any given case. Nevertheless, the
reasoning adopted in relation to other factual scenarios is of
some assistance in understanding the proper application of the
“fairly broad brush comparison” countenanced by the rule.”
[footnotes omitted]
[24] The use of metaphors such as the “same story” test has been the subject of some
criticism4, but it seems to me scarcely distracts from a proper analysis of comparing
4 Commonwealth of Australia v Winston (2024) 116 NSWLR 111 per Leaming JA at [117-120], [130].
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the existing pleadings and the proposed pleadings as a matter of substance rather than
form. Freeburn J demonstrated this in Bittun Pty Ltd v Karageozis [2026] QCA 107.
[25] The authorities have shown in order to determine whether the new causes of action
arise out of substantially the same facts, close attention needs to be brought to the
facts alleged in the existing claim and the facts sought to included in the proposed
statement of claim.
[26] It is necessary therefore to examine the facts alleged in Mr & Mrs Clark’s original
claim against the engineer HHC. They are set out in statement of claim D1/23 issued
out of the Roma District Court on 24 August 2023. There are numerous allegations
in D1/23 which relate to the proposed representation claims the subject of paragraphs
96 to 110 of the CASOC. These include paragraph 2(c)(ii) in which the Clarks allege
that the engineer engaged in the business of engineering design and specification and
technical inspection including but not limited to concrete slabs, pier stumps and
footings, bracing, external works, site drainage, inspections and certification, site
survey of existing site infrastructure and soil conditions, all defined within the broad
term of appropriate engineering services.
[27] As is required by the Building Act 1975, forms 15 and 16 are a necessary statutory
pre-cursor to the certification of occupancy which is the subject of paragraph 4 of
D1/23. Paragraph 8 of the original pleading sets out the progressive defects which
were located. Paragraphs 9 and 10 of the pleading allege that the Clarks asked the
builder to attend and provide an assessment, however, the builder refused to do so but
rather asserted that the property was built in accordance with engineering plans. There
is some importance in that because paragraph 8 specifies the evolving nature of the
cracking in the residential premises which pointed to some type of engineering
problem.
[28] The original pleading then through paragraphs 11 to 17 alleges facts relating to the
discovery of further defects in the property. In paragraph 16 of the original pleading,
reference is made to numerous failings including that the slab did not meet the current
requirements of AS 2870-2011 (paragraph 16(l)) as well as the layout of the footing
being contrary to AS 2870 (paragraph 16(m)). Further allegations of a failure to
comply with the provisions of AS 2870 in paragraphs 20(a)(iv), 20(b), with further
allegations of breaches of AS 2870 in paragraph 20(h).
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[29] Perhaps the nub of the case or the “story” to be told in the case is set out in paragraphs
21 and 22 of the original pleading which allege that movement has occurred that has
adversely affected the structural adequacy performance or functional use of the
dwelling and that has been caused by the multiple design failures of the engineer.
[30] Importantly, paragraphs 22(d), (e), (f), (g) and (h), by which Mr & Mrs Clark allege
the footing and slab movements were caused by
“(d) failure by the defendant to design the property to AS 2870 for
correct soil classification for performance criteria for the
footings and slabs for the property;
(e) failure by the defendant to ensure the footings and slabs as
designed do not exceed the 1/100 criteria;
(f) failure by the defendant to design a footing beam of a depth
compliant with AS 2870 and further to deal with any increase
in potential ground movement;
(g) improper layout of the footing beams designed by the defendant
so as to comply with the provisions of AS 2870
(h) failure by the defendant to observe relevant soil classifications
and re-classifications and take remedial actions to engineer the
property so as to stabilise the footing systems and foundations
of the property.”
[31] The original pleading by paragraph 23 claims damages in a broad fashion, that is
broad enough to encompass both property damage and economic loss.
[32] Paragraph 24 specifically alleges the engineer is in breach of contract for failing to
comply with the legislative requirements in carrying out engineering services and to
do all things necessary and necessary incidentals for proper performance of
engineering services. As noted above, s 10 of the Building Act required both the form
15 and 16 certifications to be made by a competent person.
[33] In terms of negligence at paragraph 28 of the original pleading, it was alleged that it
was reasonably foreseeable that if the property slabs and footings were not designed,
constructed and engineered pursuant to AS 2870 then significant loss or damage may
be caused to the plaintiff and that loss is particularised in paragraph 31 to be the costs
incurred in rectification work, loss of income and loss of value as a rental property.
[34] Breaches by the engineer were specified in paragraphs 34(c), (d), (e), (g), (h), (i), (k),
(l) and (m) all assert that he breached a duty of care to provide professional
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engineering services. Importantly in paragraph 34(i), the specific allegation is that
HHC the engineer failed to alert the builder of any design deficiency in its drawings
in the course of the construction of the property, and paragraph (j) to properly and
skilfully inspect the construction works of the property at the appropriate junction to
identify any design deficiencies brings squarely into play the issuance of the forms
15 and 16 compliance certificate and inspection certificate.
[35] The representation claims are defined expressly by reference to paragraphs 9 and 12
of the CASOC which relate to the issue of the form 15 on 12 August 2014 and the
issue of the form 16 on 21 October 2014. Whilst it is true that the forms 15 and 16
were not expressly referenced in the original pleading, they were factually and
legislatively an essential part of HHC’s services. Indeed, it is conceded on behalf of
HHC that there could be no objection to the tender of the forms 15 and 16 at the trial
of any proceeding on the basis of the old pleadings. In my view, that concession was
rightly made. The issuance by the second defendant of the forms 15 and 16 will more
than satisfy the substantially same facts test. Indeed, without objection they are a
critical part of the negligence claim as contained in paragraphs 84, 85, 86, 87 and 92
of the CASOC. In my view they satisfy the “same story test”.
[36] Paragraphs 104 and 105 of the CASOC raise the issue of reliance by Mr & Mrs Clark
upon the representations. I accept the second defendant’s submission is that a factual
issue which was not directly raised in the original pleading. It seems to me, however,
that even though the forms 15 and 16 were not referred to in the original pleading, the
certificate of occupancy was and the forms 15 and 16 are a necessary statutory
predecessor to the issuance of a certificate of occupancy. Furthermore, the reliance
issue is only one element of the representation cause of action and it seems to me
when regard is had to the policy underlying limitations statutes, the factual issue of
reliance is raised on substantially the same facts as the original pleading. Mr & Mrs
Clark’s reliance upon the forms 15 and 16 is an issue which can, even with the passage
of time, be fairly tested in the litigation as it is a matter within their own knowledge.
[37] There is the primary pleading in paragraph 98(a) and (b) of CASOC that the
representations made by the completion of the forms 15 and 16 were representations
of present fact that HHC did not have reasonable grounds for making those
representations, however, particulars of the basis for not having reasonable grounds
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are set out in paragraphs 84 to 89 which again particularise the negligence claim. That
is essentially the old claim
[38] HHC raises as a matter of prejudice the fact that the certifying engineer, Mr Hendriks,
has at some undefined point after the institution of the original proceedings, passed
away. HHC submits claims that it is prejudiced in this regard, however, no affidavit
has been filed claiming any specific prejudice. There is no material from the second
respondent as to when Mr Hendriks passed away, what, if anything was done in terms
of preserving Mr Hendriks’ evidence and what, if any, difficulty may arise in the
proper conduct of the defence of the second defendant as a result of Mr Hendriks
passing away. With respect to the allegation that the representations were a
representation of present fact as stated above, the lack of reasonable grounds for
making those representation is based squarely in the negligence pleading, and
therefore it ought to have been a matter which had been addressed by HHC, and there
is no evidence to suggest that it was not.
[39] By paragraph 98(c) of CASOC an alternative submission is put that if any of the
representations were in respect to a future matter, then HHC did not have reasonable
grounds for making the representations. Again, however, the reasonable basis for (or
lack of reasonable basis for) forming the opinion constituted by the representations is
the negligence claims particularised in paragraphs 84 to 89. I conclude that although
there is no specific prejudice, there is a broad and general prejudice arising from the
fact that Mr Hendriks has passed away and that he cannot be called and cross-
examined and tested in respect of his evidence.
[40] Although strictly not required to show same, it does seem to me that the new causes
of action with respect to the misrepresentation claims do arise out of substantially the
same facts as those alleged in the original pleading. I would conclude that the story is
the same and accordingly with respect to other general discretionary factors it seems
to me that there is no specific prejudice which has been demonstrated by HHC.
[41] These proceedings have been bedevilled by delay, however, the delay is properly
explicable. Firstly as may be observed upon both the original pleadings and the
CASOC, the nature of the defects is that they were an evolving problem over a period
of many years and subject to considerable investigation during that period.
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[42] The original proceedings were commenced within time and have themselves been
bedevilled by delay, however, that the delay cannot be laid solely at the feet of the
applicants. There was a lengthy and complicated QCAT process which did not resolve
the issues, and then removal of the QCAT claim and the District Court claims at Roma
through to the District Courts at Brisbane and now the Supreme Court at
Rockhampton.
[43] A further issue is raised by the second defendant being the lack of proper
particularisation of the damages claimed in the CASOC. This, however, is explained
in the affidavit of Mr Grant filed 5 June 2026, that is, there is current estimated costs
of demolishing and rebuilding of some $902,000 together with the further necessary
repairs at $41,342, a loss of rental to date at $25,000 and a loss of rental during
demolition and rebuild of some $31,200, making the current loss in damages at
$1,089,742. That could be pled and would be an adequate pleading, however, as
Mr Grant’s affidavit points out, considerable works are underway in order to obtain
an up to date and precise measure of the damages, being the cost of demolition and
rebuild. Those steps require the completion of the new structural plans by Peter
Stanford Structural Engineers. Those plans then need to be submitted to council for
approval and when they are, a local Roma builder, Mr Murray, will provide an
accurate quotation. Mr Grant’s affidavit attaches a quote from Mr Murray the builder
however the quotation is dated 23 December 2025 with Mr Grant being advised by
the engineer through the builder that costs have increased by approximately 10%.
[44] Although perhaps with the benefit of hindsight it may have been preferable to plead
the estimate of damages in terms of paragraph 8 of Mr Grant’s affidavit, that is a
particularisation of the damages currently estimated at $1,089,742, it is the case that
damages will need to be re-pled when the further work suggested by Mr Grant is
undertaken. Given the current close particularisation contained in paragraph 8 of
Mr Grant’s affidavit, it seems to me that there is no great prejudice suffered by the
defendants in giving leave to file and serve the CASOC in its current form, that is,
without the closely particularised damages claim.
[45] In conclusion, I am satisfied that I ought to grant leave to amend the pleadings to
include the disputed paragraphs 96-110 of the CASOC, as it is, for a combination of
the foregoing reasons, in the interest of justice to do so.
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15
[46] I will from parties as to the costs and appropriate forms of orders
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Official source: https://www.sclqld.org.au/caselaw/QSC/2026/135