Baldwin v Von Knorring [2015] QCATA 107
CITATION: Baldwin v Von Knorring [2015] QCATA 107
PARTIES: David Alfred Baldwin
(Applicant/Appellant)
v
Peter Von Knorring
(Respondent)
APPLICATION NUMBER: APL396-14
PARTIES: Peter Von Knorring
(Applicant/Appellant)
v
David Alfred Baldwin
(Respondent)
APPLICATION NUMBER: APL399-14
MATTER TYPE: Appeals
HEARING DATE: 20 May 2015
HEARD AT: Brisbane
DECISION OF: Senior Member O’Callaghan
Member Quinlivan
DELIVERED ON: 14 July 2015
DELIVERED AT: Brisbane
ORDERS MADE: 1. The appeals are allowed.
2. The decision of 4 September 2014 is set
aside.
3. The matters are remitted to a differently
constituted Tribunal for determination
according to law.
4. BDL297-13 be listed for a directions
hearing in the Building List.
CATCHWORDS: APPEALS – DOMESTIC BUILDING DISPUTE –
where appeal allowed on errors of law – where
parties denied procedural fairness – where error
of law in application of s 84 of the Domestic
Building Contracts Act 2000
Domestic Building Contracts Act 2000 (Qld),
s 84
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2
Queensland Building and Construction
Commission Act 1991 (Qld), s 77
Queensland Civil and Administrative Tribunal
Act 2009 (Qld), s 28, s 142
Allaro Homes Cairns Pty Ltd v O’Reilly & Anor
[2012] QCA 286
Racing Queensland v Dixon [2013] QCATA 172
APPEARANCES:
APPLICANT: Mr Baldwin appeared on his own behalf
RESPONDENT: Mr Von Knorring appeared on his own behalf
REASONS FOR DECISION
[1] Mr Baldwin agreed to carry out a home extension and renovations for Mr
Von Knorring. The works were proceeded with but the parties fell into
dispute.
[2] Mr Von Knorring commenced proceedings in QCAT seeking relief from
payment of the balance owing under the contract ($16,540.00); a
declaration about the validity of termination of the contract and the provision
of certificates and keys.
[3] Mr Baldwin responded seeking dismissal of the claim. He counter-claimed
for an amount of $34,579.20 which he says was monies owing under the
contract and for unpaid variations. He also claimed interest under the
contract. In the alternative he made a claim for unjust enrichment.
[4] Following an oral hearing the Tribunal ordered that Mr Von Knorring pay Mr
Baldwin $12,832.00 and that upon payment of this amount Mr Baldwin give
to Mr Von Knorring any outstanding building certificates, warranty
documents and keys held by him to the property.
[5] Both Mr Von Knorring and Mr Baldwin applied for leave to appeal and to
appeal the decision. The applications and appeals were heard together.
Mr Baldwin’s Appeal
[6] Mr Baldwin in his application raised only one ground of appeal, as follows:
The evidence given by me has not been read by (the learned Member) and
therefore a number of items in her decision are incorrect.
[7] In his submissions in support of his application1 he further particularised his
complaints.
1 Filed 21 November 2014.
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3
[8] We accept these submissions filed as the document in which the grounds
relied on are contained and they can be broadly summarised as:
a) The learned Member erred in that she failed to take into consideration
that he had already reduced the final payment by $2,000.00 for the
rendering of the front brick walls, which was not completed under the
contract.
b) The learned Member erred in unreasonably disallowing variations
under s 84(4) of the Domestic Building Contracts Act 2000 (Qld).
c) The learned Member erred in finding that because the contract had not
been properly terminated Mr Baldwin was not entitled to interest on the
moneys owing under the contract.
d) The learned Member erred in ordering the delivery by Mr Baldwin of
certificates and keys when she had no power to do so.
Mr Von Knorring’s Appeal
[9] Mr Von Knorring raised five grounds of appeal which were further
particularised in his submissions.2
[10] As with Mr Baldwin we accept the submissions as the document containing
the grounds of appeal relied on by Mr Von Knorring as follows:
a) That the hearing was unfair because of bias shown by the learned
Member.
b) That the learned Member erred in finding that Mr Baldwin was entitled
to be paid an amount for a variation.
c) That the learned Member erred in finding that the painting required by
the contract was the painting necessary to meet certifier requirements.
d) The learned Member erred in finding that he received the consumer
guide.
e) The learned Member erred in finding that he was not entitled to the
cost of a locksmith.
f) The learned Member erred in deciding that he was entitled to all
relevant keys and certificates only after he had paid outstanding
moneys.
[11] The grounds relied on by both parties raise questions of law, questions of
fact and questions of mixed law and fact.
[12] An appeal on a ground which raises a question of law is as of right.3 Where
the grounds of appeal consist of errors of fact or mixed law and fact then
the appeal on those grounds can proceed only with the leave of the
Tribunal.4
2 Filed 18 November 2014.
3 Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act) s 142(1).
4 Ibid, s 142(3)(b).
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[13] Both parties rely on some grounds which only raise questions of law.
[14] The Deputy President of the Tribunal in Racing Queensland v Dixon5 noted
that where a Tribunal decision gives rise to both an appeal on a question(s)
of law and an application for leave to appeal on a question of fact or mixed
law and fact it is important that the Appeal Tribunal not burden the right to
appeal a decision of QCAT on a question of law with a requirement to obtain
the Tribunal’s leave to do so.6
[15] We consider (for the reasons below) that the appeals in this matter should
succeed on a number of the grounds relied by the parties which raise
questions of law.
[16] We have heard and decided the appeals on that basis.
[17] We consider it is appropriate that the decision be set aside and returned to
a differentially constituted Tribunal for rehearing. That course is not
available if we were to decide the appeal on grounds which raise questions
of fact. In those circumstances we have not considered the parties
applications for leave to appeal on grounds which raise errors of fact or
mixed law and fact.
[18] The grounds which raise questions of law relied on by both parties can be
grouped together and raise the following issues:
a) Did the learned Member deny the parties procedural fairness?
b) Did the learned Member make an error(s) of law in her findings
concerning the variations claimed by Mr Baldwin?
c) Did the learned Member err in finding that because the contract had
not been validly terminated she could not award interest?
d) Did the learned Member err in her finding as to the provisions of
certificates and keys?
[19] We will deal with each in turn.
Were the parties denied procedural fairness?
[20] Both parties rely on the ground that to some degree and in different ways
they were denied procedural fairness at the hearing.
[21] Mr Baldwin in his application for leave to appeal or appeal listed the ground
of appeal as ‘the evidence given by me has not been read by (the learned
Member) and therefore a number of items in her decision are completely
incorrect’.
[22] This concern was not further articulated by Mr Baldwin in his written
submissions however at the outset of the oral hearing of his appeal he
indicated he did not get the opportunity to properly put forward his
5 [2013] QCATA 172.
6 Ibid, at [10].
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arguments. He told the Appeal Tribunal that there ‘were things he wanted
to say which he did not get the opportunity to say’. He said the learned
Member kept telling him she would get back to him but never did.
[23] Mr Von Knorring says the hearing was unfair. He says that the learned
Member displayed bias at the hearing and he felt she had prejudged the
matter. He says that this meant he did not get a fair hearing.
[24] We consider both parties raise legitimate concerns as to the way the
proceedings were conducted, in particular the learned Member:
a) Indicated at the outset and during the proceedings her view as to the
parties prospects;
b) Made attempts to facilitate a settlement of the dispute on the record
during the course of the proceeding; and
c) Conducted the proceedings in a way which meant the parties were
unable to properly present their case.
[25] Mr Von Knorring says he felt the learned Member had prejudged the matter
and refers to the following comments made by the learned Member at the
outset of the hearing before any evidence was taken:
Now, you’re not going to be happy with any decision I make, neither of you.
Both of you will lose.’7
… Neither of you will like what the outcome is …8
I have warned you that neither of you will be happy with the outcome today.
You understand that …9
[26] The learned Member, as part of this discussion, suggested that it may
instead be in their interests to reach a resolution of their dispute rather than
continue with the hearing. She said:
So again the question is do you want the opportunity to try and resolve the
issue yourselves? You would have to come to an amount of money that
probably Mr Von Knorring, you pay Mr Baldwin and everybody walks away.10
[27] After the hearing started and in the midst of hearing evidence the learned
Member again, on the record, expressed a view as to the outcome whilst
encouraging the parties to come to a resolution:
Member: … which is going to give you the answer that you want:
either of you. Now you’re both – I still say to you, you’re
both going to lose on this. No ones going to get exactly
…
What they want. I would really recommend that you try
and come up with a solution yourselves, because
neither of you is going to like what I am going to say. If
7 Transcript of proceedings, p 1-4, line 45.
8 Ibid, p 1-6, line 40.
9 Ibid, p 1-8, line 30.
10 Ibid, p 1-6, line 30.
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you could come to some sort of agreement about this,
where Mr Von Knorring, you pay Mr Baldwin some
amount of money. Its not going to be exactly
everything that he asks for, but it is going to be more
than your seven grand. I mean, if you could come to
an arrangement round about, I don’t know, take a half
way point, $15,000 to $16,000, then everybody walked
away. I really think – I would suggest to you that might
be a better alternative to what I am going to have to do
when I’ve unpacked all of this and gone through all the
paperwork.11
[28] And after some further discussion the learned Member continued:12
Member: Alright, alright. So just before we go one, again, do you
want some time to consider this between the two of
you, or not? Otherwise, we will just continue on. Mr
Von Knorring you’d have to be prepared more than
$7,000
Mr Von Knorring: Why?
Member: … Well, if that’s the answer, then that’s fine. You may
not get – you may be ordered to pay more than that
when I finish with this. I am just offering you a chance
to negotiate something today, to come to a consent
order, and to walk out of here with the matter finalised
…
Mr Von Knorring: But we haven’t been through all the evidence yet
Member: No. We may not of. I am offering you an opportunity to
negotiate with Mr Baldwin and finish the matter by
consent agreement between the two of you.
[29] The following exchange then took place:13
Member: Again if you would like to consider that
Mr Von Knorring: I’d like to present some more evidence first.
Member: Well I’m not going to make a decision today, sir.
Mr Von Knorring: No. But surely I can be heard.
Member: Yes. Of course you can. I’m just giving you the
opportunity, at this point, if you would like some time
to negotiate with Mr Baldwin to do that. If you don’t
want to, that’s fine.
Mr Von Knorring: Well if he gives me an honest bill, I’ll pay it. Simple as
that.
Member: Well today is not about honest bills. Today would be a
compromise on the amount of money you pay Mr
Baldwin and everybody walks away.
11 Ibid, p 1-124, lines 25-40.
12 Ibid, p 1-125, line 30.
13 Ibid, p 1-126, lines 20-40.
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Mr Von Knorring: So your suggesting I pay more than he’s owed.
Member: No. I am suggesting that you might want to think about
compromising this with Mr Baldwin, rather than
continuing with the hearing and having me make the
decision.
[30] The proceedings continued with the learned Member leading the
negotiations between the parties on the record:14
Member: We’re just talking about coming up with a figure that
you can both live with, that would be better than
finishing the hearing and getting a decision from me,
because you don’t know where I am going to go. So I
am just offering you the opportunity to do a straight
negotiation. Now Mr Baldwin said he would consider a
payment around $22,000. If you wanted to offer
something higher than your $7,000, but less than
$22,000 it may be that you could compromise on that.
Is that something that would interest you? Would you
like to make a counter-offer?
…
Mr Von Knorring: There was no mention of variations before, at any time
during the job.
Member: I understand that. I am not referring this negotiation to
the work that I have got to do. I am just looking at a
straight money amount. Would you be prepared to
raise the money that you’re paying to Mr Baldwin any
higher than the rough $7,000 that is currently on the
table.
[31] The ongoing discussion between Mr Von Knorring and Mr Baldwin is
recorded in a further two pages of transcript with the learned Member
continuing to encourage both parties to agree a figure to resolve the
dispute.15
[32] When the parties did not agree the proceedings continued.
[33] We consider this approach taken by the learned Member has resulted in
procedural unfairness to the parties.
[34] They are both self-represented. When they attended the hearing they were
entitled to expect that the Tribunal would proceed to hear their evidence and
submissions and at that point make a decision.
[35] It was open to both parties to conclude that the learned Member had made
a decision before the evidence was tested and before the submissions were
made. She in fact said so.
14 Ibid, p 1-127, lines 25-45.
15 Ibid, p 1-128 to p 1-130.
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[36] This would have been unexpected and have been off putting to the parties.
It no doubt impacted on the way they presented themselves and their
evidence and submissions at the hearing.
[37] The attempts to have the parties resolve the matter at the beginning and
during the course of the hearing most likely exacerbated this confusion on
their behalf.
[38] It was apparent that Mr Von Knorring was confused in how the proceeding
was being conducted and raised with the learned Member when settlement
was suggested that he had not finished his evidence.16
[39] Alternative dispute resolution is one of QCAT’s functions. By the time
matters come on for hearing the parties will have participated in at least one
compulsory conference.
[40] There are some occasions when on the day of the hearing it is appropriate
for the presiding Member to offer the parties the opportunity to resolve the
dispute before the hearing commences. However it is not appropriate to
carry out those negotiations with the parties on the record and then proceed
with the hearing. The parties should leave the hearing room to conduct
those discussions. Alternatively another member (if available) could chair a
compulsory conference.
[41] If the member allocated to conduct the hearing conducts a conference they
should only do so off the record and after explaining to the parties that in all
likelihood they will not be able to continue the hearing if the matter does not
resolve.
[42] The indication by the learned Member as to the likely outcome before and
after the hearing commenced, and the conducting of settlement
negotiations during the giving of evidence meant that the parties were in all
likelihood confused about the process which meant they were not given a
satisfactory opportunity to present their case.
[43] The haphazard way the proceedings unfolded led to further instances of
procedural unfairness.
[44] We are not convinced that Mr Baldwin got an appropriate opportunity to
present his case.
[45] Both Mr Von Knorring and Mr Baldwin were sworn in at the bar table at the
commencement of the hearing and gave evidence from the bar table during
the proceedings. A perusal of the transcript indicates that this arrangement
led to confusion about who was giving evidence, who was cross-examining
and who was making submissions.
[46] Most of the morning (apart from the negotiations) was taken up with Mr Von
Knorring asking questions of Mr Baldwin and the learned Member asking
16 Ibid, p 1-26.
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questions of both parties. Mr Baldwin considers he did not get the same
opportunities as Mr Von Knorring.
[47] The parties had been told at the beginning of the hearing17 that Mr Baldwin
would be given the opportunity to ask questions of Mr Von Knorring after he
had been asked questions.
[48] At the end of Mr Von Knorring’s cross-examination of Mr Baldwin the
learned Member said:18
Member: What I am proposing to do is stop the cross-
examination now. See if Mr Baldwin’s got – have you
got any questions for Mr Von Knorring? No.
Mr Baldwin: No. Not a …
[49] Mr Baldwin did not have an opportunity to finish his response when the
learned Member said:
Okay. What I’m more – I didn’t think you would have.
[50] The learned Member then went on to call for submissions from the parties.
[51] Mr Von Knorring started to make submissions and then it would appear the
hearing of evidence resumed with Mr Von Knorring raising questions about
variations and both parties giving evidence about the variations.
[52] At the end of that discussion the learned Member asked Mr Von Knorring
whether he had any other issues because she would like to give Mr Baldwin
a chance to speak.
[53] She then said to Mr Baldwin that she had no questions for him as everything
was sufficiently covered in the material. She asked him whether he wanted
to ask Mr Von Knorring any questions or ‘whether he satisfied that
everything that he wanted to say was covered by the material that he had
filed’.19
[54] Mr Baldwin did not press for an opportunity to give submissions. We get the
impression however that this may have been as a result of the loose manner
in which the proceedings had unfolded.
[55] The Tribunal does have an obligation when conducting a hearing to act ‘with
as little formality and technicality’20 but this is only to the extent that a ‘proper
consideration of the matters before the Tribunal permits’.21
[56] In this case we consider that the lack of structure to the proceedings
together with the learned Member’s disclosing her view in the matter whilst
17 Ibid, p 1-22, line 45.
18 Ibid, p 1-93, lines 10-25.
19 Ibid, p 1-139, line 35.
20 QCAT Act s 28(3)(d).
21 Ibid.
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encouraging settlement discussions has resulted in procedural unfairness
to the parties.
[57] This is a demonstrated error of law.
[58] We allow the appeal on this ground.
Did the learned Member err in law in her findings in relation to Mr Baldwin’s
claim for variations?
(a) Application of the Domestic Building Contracts Act 2000 (Qld) (DBC
Act).
[59] Both parties allege the learned Member made errors of law in her
application of s 84 of the DBC Act when she considered Mr Baldwin’s claim
for variations.
[60] In his original claim Mr Baldwin had claimed the sum of $17,979.20 ‘being
a reasonable price for variations performed’. Mr Von Knorring disputed the
claim. He said the work the subject of the variation claims was included in
the scope of work under the contract and that Mr Baldwin had not claimed
any additional variations as defined in the DBC Act.
[61] In her decision the learned Member correctly identified that the contract
between the parties required:
the variations to be in writing; and
to be in accordance with the terms of the DBC Act, s 80(2).22
[62] The learned Member then referred to s 84(4) saying it:
… allows a variation sought by the building contractor and not otherwise
complying with the Act to be recovered if the Tribunal is satisfied that there
are exceptional circumstances; the contractor would suffer unreasonable
hardship; and it would not be unfair to the building owner.23
[63] The learned Member disallowed all of the unsigned variations apart from
one variation dated 2 August 2013. She allowed this variation in the sum of
$3,379.20 pursuant to s 84(4) of the DBC Act.
[64] Mr Von Knorring says the learned Member erred at law in allowing this
variation.
[65] Mr Baldwin says the learned Member erred in not allowing all of the
variations.
[66] The provisions of s 84(2) and (3) of the DBC Act provide in effect that
variations can only be recovered if the building contractor complies with
formal provisions set out in the act, or alternatively with the Tribunal’s
22 Reasons for decision, at [33].
23 Ibid, at [34].
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approval given on an application made as provided under the QCAT Act to
the Tribunal.24
[67] Subsection (4) deals with approval by the Tribunal and provides that
(4) The Tribunal may approve the recovery of an amount by the building
contractor for a variation only if the tribunal is satisfied that -
(a) either of the following applies-
(i) there are exceptional circumstances to warrant the
conferring of an entitlement on the building contractor for
recovery of an amount for the variation;
(ii) the building contractor would suffer unreasonable hardship
by the operation of subsection (2)(a) or (3)(a); and
(b) it would not be unfair to the building owner for the building
contractor to recover an amount.
[68] The learned Member disallowed the bulk of the unsigned variations but she
did allow the 2 August 2013 variation. She said she accepted Mr Baldwin’s
evidence that this work had not been allowed for in the contract as it was
not visible until the walls were removed.25
[69] She found (referring to the words in s 84(4)):
… that there are exceptional circumstance (sic) because the damage was
not visible until the walls were removed: the contractor would suffer
unreasonable hardship: and it would not be unfair to Mr Von Knorring to have
this extra work undertaken to make safe the property.
[70] We accept Mr Von Knorring’s submission that the learned Member erred in
making this determination.
(i) Mr Baldwin made no application to the Tribunal under s 84(4) as
required by that section.
[71] The prospect of a claim under s 84 was first raised by the learned Member
during the hearing. Mr Von Knorring and Mr Baldwin were effectively giving
concurrent evidence about the variations claimed by Mr Baldwin when the
Member said:26
Member: Now Mr Von Knorring, you understand that section 84
of the Domestic Building Contracts Act allows a
variation sought by a building contractor not otherwise
complying with the Act, and all the ones that aren’t
signed, don’t. If the Tribunal is satisfied there are
exceptional circumstances the contractor would suffer
unreasonable hardship and it would not be unfair to
the building owner. Have you had a look at that.
Mr Von Knorring: Yes.
24 DBC Act s 84(1)-(4).
25 Reasons for decision at [38].
26 Transcript of proceedings, p 1-118, line 10.
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Member: Okay. Really – can I suggest that rather than going
through these variations item by item, you probably
should be addressing me on that section, as to why I
shouldn’t allow the variations that are not signed.27
[72] As no application under s 84 had been made by Mr Baldwin either in his
application or orally, the Tribunal’s power to make an order under s 84(4)
had not been enlivened. The learned Member made an error of law in
making the order.
(ii) Mr Von Knorring was denied natural justice in the way the learned
Member raised the possibility of an order under s 84 and then
proceeded to make the order.
[73] Mr Baldwin had made no submissions that exceptional circumstances
warranted the recovery of the variation. He gave evidence that the work was
beyond the scope in the contract and not expected,28 but did not ask the
Tribunal to draw the conclusion that this equalled ‘exceptional
circumstances’. Likewise he had made no submission that he would suffer
unreasonable hardship if not paid the variation.
[74] The learned Member after raising the possibility of an order under s 84 said
to Mr Baldwin:
You’ve got to show me that there are exceptional circumstances why I should
allow this variation, that you would suffer unreasonable hardship and if I didn’t
allow it, and it would not be unfair to the building owner.29
[75] Mr Baldwin made some references to his written statement where he
described the work that had been done. The learned Member then
rephrased Mr Baldwin’s evidence:30
Member: … effectively, what you’re saying is there was more
working in the bathroom than you thought.
Mr Baldwin: Yes. Yes.
Member: And so you wanted a variation, because when you
took everything off, it was more than you thought it was
going to be.
[76] The learned Member then subsequently asked Mr Von Knorring ‘why
wouldn’t Mr Baldwin be suffering unreasonable hardship to not give him
money for extra work, once it was uncovered?’.31
[77] Mr Von Knorring had no notice that any consideration was going to be given
to a claim under s 84. He was not given any opportunity to provide evidence
on the issue of whether it would be unfair to him to recover an amount.32 He
was given no opportunity to cross-examine Mr Baldwin on the issue of
27 Ibid, p 1-118, line 20.
28 Mr Baldwin’s Statement of Evidence filed 24 February 2014 at [10.6]-[10.12].
29 Transcript of proceedings, p 1-119, line 35.
30 Ibid, p 1-121, line 5.
31 Ibid, p 1-121, line 20.
32 DBC Act s 84(4)(b).
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whether Mr Baldwin would suffer unreasonable hardship. He was therefore
not prepared to give considered submissions on whether exceptional
circumstances existed, whether Mr Baldwin would suffer unreasonable
hardship and whether it would be unfair to him to make the order. Mr Von
Knorring was denied natural justice by the learned Member.
(iii) Mr Von Knorring also says the learned Member erred in that she made
the finding that exceptional circumstances existed and Mr Baldwin
would suffer unreasonable hardship when there was no evidence to
support the findings.
[78] We agree.
[79] The only evidence from Mr Baldwin about the variation was that that the
work the subject of it was unexpected, it was agreed to by Mr Von Knorring
and that despite his reasonable efforts Mr Von Knorring would not sign it.33
[80] The learned Member found that this evidence was sufficient to support a
finding of exceptional circumstances and unreasonable hardship.34
[81] The Court of Appeal has dealt recently with the issue of what is meant by
‘exceptional circumstances’ and ‘unreasonable hardship’ in the context of
s 84(4) in the case of Allaro Homes Cairns Pty Ltd v O’Reilly & Anor.35
[82] As to ‘exceptional circumstance’ North J said:
The phrase “exceptional circumstances” is not defined. It is found in an Act
whose purpose or object is to achieve a reasonable balance between the
interests of building contractors and building owners and to maintain
appropriate standards of conduct in the industry. It may be vague but the
matters that might be considered relevant to such an inquiry will be indicated
by the particular way in which the Act was not complied with and the
circumstances particular to the dispute. In this Act, it directs attention to those
circumstances which are exceptional and warrant conferring upon the
building contractor an entitlement to recovery for the variation which its
conduct, by failing to meet the obligations imposed by the statute, deprived
it.36
[83] The learned Member found that there were exceptional circumstances
because the work the subject of the variation was not expected.37 That
would be the case with a lot of variations. Even if factually correct (and that
is not considered by us) this reason is insufficient at law to find that
‘exceptional circumstance’ existed.
[84] In discussing what is meant by ‘unreasonable hardship’ North J said:
The circumstance that a builder might be unpaid for work done does not
necessarily lead to an inference that hardship is suffered. Something more
33 Mr Baldwin’s Statement of Evidence filed 24 February 2014 at [10].
34 Reasons for decision at [39].
35 [2012] QCA 286.
36 Ibid, at [15].
37 Ibid, at [39].
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than non-payment should be demonstrated to establish “unreasonable
hardship” suffered from the operation of the Act.38
[85] Here Mr Baldwin gave no evidence of any unreasonable hardship that he
might suffer. The learned Member made the finding presumably on the
basis that he had not been paid. She did not however give any reasons for
the finding. The lack of evidence to support the finding and the absence of
reasons for the finding are errors of law.
[86] Mr Von Knorring’s appeal on the ground that the learned Member erred in
her application of s 84 is allowed.
[87] Mr Baldwin says the learned Member having found that one variation was
allowable on the basis that the work was unexpected, erred in not awarding
the amount claimed for all of the variations pursuant to s 84.
[88] As set out above no application was made by Mr Baldwin for an order under
s 84. We find that the learned Member made no error in not awarding the
balance of the variations under s 84. Mr Baldwin’s appeal on that ground
fails.
(b) Failure to consider Mr Baldwin’s alternative claim in quantum meruit?
[89] Mr Baldwin made an alternative claim in his counter application for payment
of the variations on the basis that Mr Von Knorring had been unjustly
enriched by receiving of benefit as a consequence of Mr Baldwin having
performed the work and he should be remunerated accordingly.
[90] It is correct that the learned Member made no reference of this alternate
claim in her reasons.
[91] It is therefore not known whether the learned Member considered the
application and dismissed it as unmeritorious or whether it was given no
consideration at all. Neither Mr Von Knorring or Mr Baldwin were asked to
make any submissions about the claim at the hearing.
[92] We are inclined to find in those circumstances that no consideration of the
claim was given by the learned Member and in those circumstances the
learned Member has failed to give procedural fairness to Mr Baldwin in that
respect.
Did the Tribunal err in not allowing Mr Baldwin to claim interest on
outstanding monies?
[93] In his counter-claim Mr Baldwin had claimed interest on the monies he
claimed to be owing under the contract at 5% in ‘accordance with the terms
of the contract’.
[94] The learned Member found that monies were owing to Mr Baldwin under
the contract but refused the claim for interest. She said she was not satisfied
that Mr Baldwin was able to establish an entitlement to interest because
38 Ibid, at [21].
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‘neither party validly terminated the contract and in view of the poor
condition of the contract documentation’.39
[95] Mr Baldwin said this finding involved an error of law. We agree.
[96] The contract provided for the owner to pay interest on overdue amounts at
5%.
[97] There was no requirement for the contract to be validly terminated before
the interest was payable. This finding involved an error of law.
Did the learned Member err in law in her findings concerning the provision
of certificates and keys?
[98] Mr Von Knorring says the learned Member erred in finding Mr Baldwin only
had to provide the certificates and keys after he paid Mr Baldwin the monies
owing under the contract.
[99] The learned Member gave no reasons for her finding that Mr Von Knorring
was entitled to keys, warranty and certification ‘once he has paid any final
outstanding monies’. This failure to give reasons is a sufficient error in law
and we allow the appeal on that basis.
[100] Mr Baldwin says the finding that he hand over the keys and certificates was
wrong at law because the Tribunal had no powers to do so. He says s 77(2)
of the Queensland Building and Construction Commission Act 1991 (Qld)
(QBCC Act) (which gives the Tribunal jurisdiction power to make certain
orders in resolving a building dispute) does not include a power relating to
an order for delivery of certificates, warranty or keys. This ground of appeal
is rejected. The list of powers in s 77 is not an exhaustive list. It is indicative
only and does not limit the orders the Tribunal may make.40
Conclusion
[101] The learned Member made a number of errors of law as set out in this
decision and reasons.
[102] The parties have also relied on grounds of appeal which raise questions of
fact and questions of mixed law and fact. Having decided the appeal on the
grounds which raise questions of law we have not conducted a rehearing of
the matter. This needs to be done before a new decision can be made. We
are unable to substitute a new decision. The parties should be given a fresh
opportunity to present their cases in a manner which affords them
procedural fairness.
39 Ibid, at [56].
40 QBCC Act s 77(2).
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16
[103] We intend to remit the matter back to the Tribunal (before a different
Member) for hearing. This reconsideration by a new Tribunal will involve a
fresh hearing and at which time these issues the subject of the other
grounds of appeal will in any event be reheard.
[104] The building matter should be relisted for a directions hearing in the building
list.
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Official source: https://www.sclqld.org.au/caselaw/QCATA/2015/107