Bourne v Queensland Building Services Authority [2012] QCATA 102
CITATION: Bourne v Queensland Building Services
Authority [2012] QCATA 102
PARTIES: Elizabeth Anne Bourne
(Applicant/Appellant)
v
Queensland Building Services Authority
(Respondent)
APPLICATION NUMBER: APL279-11
MATTER TYPE: Appeals
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: Mr John Jerrard QC, Member
DELIVERED ON: 8 June 2012
DELIVERED AT: Brisbane
ORDERS MADE: 1. Leave to appeal is refused.
2. The appeal is dismissed.
CATCHWORDS: Whether grounds exist to overturn a strike out
order
APPEARANCES and REPRESENTATION (if any):
This matter was heard and determined on the papers pursuant to s 32 of the
Queensland Civil and Administrative Tribunal Act 2009 (QCAT Act).
REASONS FOR DECISION
[1] This matter is an application for leave to appeal from, and an appeal
against, a decision of a member of this Tribunal, made on 14 July 2011,
ordering that both Application GAR089-11, filed on 7 April 2011, and
Application GAR105-11, filed on 23 March 2011, be struck out, as no
reviewable decision had been made out by the applicant.
[2] Applications GAR089-11 and GAR105-11 had been filed by Elizabeth
Bourne in this Tribunal, in which Ms Bourne applied for a review of what
she described in each application as a “decision” of the Building Services
Authority (the „BSA‟), which decisions were communicated to her by letters
respectively dated 23 February 2011 and 22 March 2011. Those two
letters conveyed an offer by the BSA to return the parties to the position
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existing on 14 April 2010. That position was that the BSA had issued a
notice to licensed contractors, inviting them to tender for rectification work
on premises owned and occupied by Elizabeth Bourne. She had been
dissatisfied with the wording of the tenders, and the manner in which the
BSA proposed to proceed with that rectification work, and had demanded
the BSA stop “all tenders and actions regarding my property”. The BSA
did so stop, and then on 12 February 2011, Elizabeth Bourne contacted
the BSA, complaining of the condition of her home, and requesting various
specified rectification works be carried out.
[3] To appreciate the nature of the works suggested in 2010 by the BSA, and
the works requested in 2011 by Ms Bourne, it is necessary to have regard
to the history of the dealings between the two parties from mid 2008
onwards. That general history appears in the documents which comprise
a large lever arch folder submitted to this Tribunal by Elizabeth Bourne,
and helpfully paginated and indexed by her. Those documents include a
copy of a quotation dated 11 February 2008 from a company Weirkids Pty
Ltd, for various building work to be performed on Elizabeth Bourne‟s home
at 63 Mount View, Drive Coolum, Queensland. The contract, reproduced
at pages 140-143 of Elizabeth Bourne‟s evidence folder, when read with
the quote, provides for the supply and installation of Shadowclad sheeting
to specified walls of a house at 63 Mount View Drive. It provides for the
work to start on 25 March 2008, and that it should be practically completed
by or on about 4 April of that year.
[4] Elizabeth Bourne returned to Mount Coolum on 17 June 2008, after some
three weeks in Victoria. She was dissatisfied with the appearance of the
work on her house, which she understood was only being finished in mid
May; and on 26 June 2008 received a quotation from a Sunshine Coast
builder for stripping back 1 square metre of damaged Gyprock ceiling
lining, and installing new Gyprock lining. The quotation also provided for
the repairing of some minor damage to a wall area above a shower recess
in the bathroom, and an accompanying letter from the proposed contractor
describes the contractor being told that damage to her property had
occurred during torrential rain in recent storms, on 2 June 2008. That
letter informed her that the contractor had noticed that a TV antenna on
the roof area was located above the bathroom ceiling and, in the
contractor‟s opinion, wind driven rain was able to access a gap that
existed in the roof sheeting, apparently where the pitched roof of the
house adjoined a skillion roof above the bedroom ceiling. The contractor
also remarked that an inspection of the roof space (particularly the ceiling
of the bedroom) showed that the sarking had fallen away below that area,
and debris was evident in the ceiling space. The contractor‟s opinion was
that water entry had allowed debris to access the roof space and onto the
ceiling, causing the damage. The contractor also remarked that in the
contractor‟s opinion, the water entry to the bathroom had occurred as a
result of the sarking also becoming displaced and allowing debris and
water entry to occur.
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[5] Then followed correspondence between Elizabeth Bourne and the builder
from Weirkids, who appeared to accept that there was a leak on the
southern side of the house, and described the cause of the problem of
being “the gable roof flashings”. Mr Weir of Weirkids explained further that
“we removed the gable flashing directly over the area of leak and where
the external sheet cladding was warped and found the water entry point
where the first of the tv dishes coaxial cable was ran under the gable
flashing”. He wrote that “the tv dish installer had cut a section out of the
roof flashing so as to let the cable run through. The problem with this is
that it also let water running down roof gain access to underneath flashing
and down space to between external building paper and external wall
cladding. Thus causing the wet floor in bedroom and the warping in the
three external wall sheets”. He continued “While we were there we
temporarily sealed up problem areas so as to stop further leakage and
damage”. He added:
“if you recall me saying that the flashing did need some attention as on
the inspection was found that they were too small and were cut too short
where pitch of roof changes, thus allowing the water entry”.
[6] He had worked out a quote for
“removing existing flashings to both sides of the roof area and supply and
fit new wider covering flashings to solve water problem”.
[7] He added (in a communication sent 2 October 2008) that
“I would say that the reason why the existing weatherboard on house
were in such poor condition was the ongoing water entry through poor
fitted flashings fitted when the house was first built and installation of tv
dish. In regards to the external wall sheet, it was evident that the sheets
did not warp as a fault of supplier or installer but rather as of water
entering roof and water soaking the rear surface of wall sheets. Which
would steer further towards an insurance claim as Weirkids building and
design cannot be held responsible for particulars regarding the roof area
of house”.
[8] In a further letter 3 October 2008 he repeated the opinion that there was
“clearly a home insurance claim”, because “The problem here is that the
water leaked through roof and then penetrated the inside face of sheet
which made it warp”.
[9] Elizabeth Bourne‟s reply to the builder‟s suggestions and observations
was to state (on 13 October 2008) that she held the company Weirkids
fully responsible to the damage to the cladding, for “not adhering to
installation guides, and waterproofing of the product,” and to make the
point that the damage to the house was so immediate (within weeks) and
so major, that “it is not the fault of the product, but the workmanship, and
installation of the product and or waterproofing the area, by your company
Weirkids.” She also complained of having being told, in response to a
query by her, that there was no warranty for the work done by Weirkids,
and refused to claim on her insurance, as suggested by Weirkids.
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(I understand the insurance which Mr Weir had suggested be the subject
of complaint related to the installation of the TV antenna). Elizabeth
Bourne‟s position, expressed in her letter to Weirkids of 13 October 2008,
was that the AusStar dish had been installed 3 years earlier by a tenant,
and had created no problem internally, no matter how badly it was
installed.
[10] On 10 November 2008 the damage claims administrator for Access
Television Services wrote to Elizabeth Bourne, responding to a claim she
had recently made against Access Television Services, in respect of a
claim that the installation of a television service in 2006 had caused the
water damage to her property at 63 Mountain View Drive. The letter
advised that Access had arranged for a supervisor on the Sunshine Coast
area, and a quality technician, to assess the complaint, and the supervisor
had made a report. The supervisor advised the main point surrounding
the decision was due to the fact that the leak was in a different location to
where the dish was installed 2 years earlier, and there was no water trail
internally following the leak. The supervisor also stated that had the dish
been installed incorrectly, it would have caused a leak a lot sooner, as
opposed to 2 years later, and that the supervisor had confirmation that
within the last 2 years there had been various other work in the vicinity,
replacing cladding and completing renovations directly where the AusStar
cables had been installed. Accordingly, Access Television asserted to Ms
Bourne that their supervisor had confirmed that the AusStar installation
was not the cause of the damage in question, and had been completed to
AusStar standards.
[11] On 10 November 2008 Ms Bourne complained to the BSA about Weirkids,
including a complaint that Weirkids had asked her to claim on her
insurance whereas she had asked Weirkids to use its insurance on her
claim against them. On 3 December 2008 an inspector from the BSA
attended her premises and that same inspector filed a report dated
5 December 2008, in which he expressed the opinion that the roof flashing
was leaking before the installation of the Shadowclad ply cladding. That
inspector, Mr Blumel, inspected the roof in company with Mr Weir, and
accepted that Weirkids had not removed or altered the roof or the roof
flashing during installation of the exterior cladding, and that it had simply
been slid up behind the existing flashing. That acceptance meant Mr
Blumel said to Elizabeth Bourne, and wrote to Elizabeth Bourne to say,
that “the builder is not responsible for the cause of the water penetration
or the consequential damage”. Mr Blumel also accepted Mr Weir‟s
statements to him that Mr Weir had, as he agreed he had promised with
Ms Elizabeth Bourne to do, applied three coats of paint to the building,
rather than only 1 coat, which Elizabeth Bourne complained was all he
had applied.
[12] On an unspecified date in the first half of 2009, Elizabeth Bourne made a
lengthy complaint to the BSA about Mr Blumel, in which she principally
contended that Mr Blumel had been motivated to protect Mr Weir from
adverse findings and criticism. Her complaints included that it was Mr
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Blumel who had volunteered the suggestion that Mr Weir had not
unscrewed the flashings, to install the new cladding, but had simply
“slipped it up and under”. She also contended that Mr Weir had said to
her that “you are just after free flashings” during the course of that
inspection, on 3 December 2008. She had previously learnt from Mr Weir
himself, when he had worked on her house, that he occasionally
performed inspections for the BSA. She said in her complaint about Mr
Blumel, that Mr Blumel and Mr Weir had colluded against her interests and
in Mr Weir‟s favour.
[13] Regarding the condition of her house, quite soon after the report of
5 December 2008 was given to her, she had arranged for an inspection of
her premises by a Mr Taverner, from Carter Holt Harvey Wood Products
Australia, the providers of Shadowclad wall cladding. That inspection
resulted in an report of 10 February 2009 from Mr Taverner to Elizabeth
Bourne, in which Mr Taverner said:
The correct nailing pattern and nail location, as detailed by Carter Holt
Harvey‟s installation manual, had not been followed, which may have
contributed to excessive movement within the sheets.
There did not appear to have been any primer applied to laps, cut
edges, or the underside of the sheets, during installation.
Inadequate or no expansion gaps had been provided for horizontal
flashings.
The sisalation paper used did not appear to be “breathable/vapour
permeable”.
[14] Mr Taverner added that “it is foreseeable that the long term performance
of the Shadowclad may well be compromised due to correct installation
procedures not being followed”.
[15] Ms Bourne supplied a copy of that report to Weirkids, which, on
12 February 2009, replied contending that the correct procedures had
been followed. Mr Weir said that Weirkids did in fact use the correct
sisilation paper, had followed the correct fixing guidelines, did allow for an
expanding gape (both vertical and horizontal), that all cut edges and laps
had no exposure to external conditions, and that while as a builder of 20
years experience he agreed that that under some circumstances the
incorrect fixing might cause immature breakdown of external cladding, in
the case of the Shadowclad at 63 Mountain View Drive, “it is on record
that after an inspection by Ross Blumel, that the warping of the
Shadowclad external sheeting was caused by the entry of rain water
through the poor condition of flashings and poor installation of TV dish”.
[16] On 2 March 2009 Elizabeth Bourne made a further complaint to the BSA
about the work done at the premises by Weirkids, this time complaining of
defective installation of the full exterior house cladding. She attached the
report by Mr Colin Taverner of CHH Wood Products Australia. That
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resulted in communications passing between Mr Weir, Mr Taverner, and
Mr Blumel, from which it emerged that Mr Taverner had not been told by
Elizabeth Bourne of the water leakage to the area behind the cladding. Mr
Blumel also made a further inspection of the premises on 10 March 2009,
and recorded that “I inspected the nailing in general which appeared to be
holding the ply up on the wall satisfactorily”. He added that “all exposed
edges that I could see are painted” and that “the builder advised that the
expandable gaps are in fact and sealed over with a flexible sealant”. He
added that “I could see sisalation paper at the bottom of the ply and the
builder confirmed it was in fact a breather type paper”.
[17] It appears from those comments of Mr Blumel‟s that he was prone to
disagree with Mr Taverner‟s description of the installation as defective.
On 20 March 2009 he wrote to Mr Taverner, advising the latter
“I agree that if a builder does not follow the manufacturers installation
recommendation and things go wrong they leave themselves open to
having to carry out rectification which can be a cost. However in this
instance the bowing is limited to the area where the water entry has been
detected and the rest of the ply cladding is performing satisfactory to date.
…In this instance the water entry was leaked via the defective roof which
was not part of this builders work.”
[18] Mr Taverner replied on 15 April to Mr Blumel, saying he had amended his
report. He added the following paragraph (to Mr Blumel).
“Unfortunately, it is not possible to ascertain if water ingress was the
single contributing factor to the sheets warping. If the exact installation
details for Shadowclad were followed and the sheets were still warped
then it may well be attributed water ingress, however, I have seen
instances where Shadowclad sheets have warped with no presence of
water behind the sheets but correct installation procedures were not
followed.”
[19] On 31 March 2009 Elizabeth Bourne sent to Mr Blumel some more
evidence relevant to her complaint about the allegedly defective
installation cladding, saying another area was warping, with a big gap, at
the far end of the house. She asked Mr Blumel to inspect the area and
enter her photos and relevant information into the file. Mr Blumel
responded by asking Mr Weir to investigate “and rectify if necessary”,
adding that “If it relates to the roof then obviously that was not part of your
contract.” Thus advised, Mr Weir made an inspection on 31 March 2009,
and informed Mr Blumel that “it is the roof what is to blame and not that
shocking builder”.
[20] Then on 15 April 2009 Mr Taverner submitted a written report to Mr
Blumel, repeating verbatim the matters raised in his report to Elizabeth
Bourne of 10 February 2009, but adding the statement that “Further
documentation provided to me by yourself, indicates an existing water
ingress issue above the affected Shadowclad sheets. The presence of
water behind the back face of the Shadowclad and sisalation paper may
also contribute to the „warping‟ of the sheets‟”. Mr Blumel wrote to
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Elizabeth Bourne on 17 April 2009, regarding her complaint made on
31 March 2009. He wrote that
“It is conceded that the ply may not be installed precisely in accordance
with the manufacturer‟s recommendations. However, the only area that
has demonstrated any ill affects to date is where water penetration has
occurred from the vicinity of the roof and associated roof flashings. The
builder did not remove or alter the roof or the roof flashings during
installation of the exterior cladding.
Due to the fact that this water entry is NOT a consequence of the builder‟s
work and the ply is only showing ill affects where this roof water has
entered behind the ply cladding, it is now considered appropriate for BSA
to close this file.”
[21] Somewhere around that time Elizabeth Bourne made her undated
complaint to the BSA about Mr Blumel. Mr Col Wright, the Deputy
General Manger of the BSA, wrote to Mrs Bourne on 19 May 2009,
advising her that a Senior Building Inspector Bob Clayton, would be
making an independent assessment of the work on her house, relative to
her complaint about Mr Blumel. Mr Wright also received a 3 page report
from Mr Blumel, in which Mr Blumel defended his actions, and repeated
his opinion that the roof flashing was leaking prior to the installation of the
ply cladding. Someone has written, next to that expression of opinion in
that report, “why wasn‟t this observed by builder when board stripped”
(apparently written by either Mr Clayton, or Mr Wright, on the receipt of Mr
Blumel‟s report). Elizabeth Bourne has received a copy of that report
(apparently under freedom of information), and makes much of that
comment. In Mr Blumel‟s defence, the point should be made that his
opinion is consistent with the very first report which Elizabeth Bourne
received in this matter, from the builder who quoted to repair the damaged
Gyprock wall in June 2008.
[22] Mr Clayton inspected the premises on 29 May 2009 and reported on
10 June 2009. He came to a different opinion from Mr Blumel, and an
exchange of emails shows that they have agreed to differ. Mr Clayton‟s
opinion, expressed at page 2 of his report (paragraph 1), was that the
exterior cladding was not able to disperse water away or from the sheeting
joints, as required by the manufacturer. He went on “The fact is that the
material has not been installed as per the manufacturer details in the
installation manual”. Mr Clayton wrote with respect to the complaint about
defective installation of the cladding, that the issues of concern were that
the construction of the horizontal joints was incorrect as there was no
drainage gap at the junction of the sheeting and the metal flashing. The
exposed edges of the sheets have not been sealed as required to prevent
water entry. He considered it could be deduced that if exposed external
edges were not coated as required (as he thought was the case) then the
concealed cut edges and ends were in a similar condition. He wrote that a
failure to install a horizontal joint as detailed in the manufacturer details
would result in moisture being trapped and not dispersed away from the
sheeting. Another defect observed was that excessive sealant had been
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applied to the juncture of the roof sheetings and flashings. He accepted
advice by Elizabeth Bourne that Mr Weir had applied that sealant in those
locations, and considered that that was confirmed in the documents
supplied by Mr Weir. He also concluded that he would not require Mr Weir
to replace the flashings because “it is not apparent that the flashings were
damaged and minor repair of alignment might be required during the
rectification of the cladding”. However if the flashing required replacement
through no fault of Mr Weir, Elizabeth Bourne would need to pay for that
replacement.
[23] On 22 June 2009 Elizabeth Bourne emailed Mr Clayton, informing him that
water was now leaking into 2 places in her house. She made similar
complaints in an email to Weirkids on 23 June 2009. On 23 June 2009,
the BSA issued a notice described as a “request to rectify” to Weirkids Pty
Ltd, requiring it to rectify items specified in the rectification of completion
direction, which request stated that the installation of the Shadowclad wall
grooved exterior wall cladding to all elevations of the building has not been
in accordance with the manufacturing installation details in regard to the
inadequate provision of horizontal joints, at junction of sheets and metal
flashing, inadequate application of appropriate coating to ends of sheets
and laps, and fixing spaces in several locations being inadequate. There
was also a description of excessive deflection of Shadowclad grooved
exterior wall cladding being evident on these elevations, and excessive
use of sealant at the juncture of roof sheeting and flashing was evident.
[24] Next there was an inspection at Elizabeth Bourne‟s property, on 25 June
2009, with those present being Mr Weir (the builder), Mr Taverner of
Carter Holt Harvey, and Elizabeth Bourne. Her later correspondence
discloses that she was disappointed with the attitude demonstrated by Mr
Taverner at that meeting, in that she considered he did not criticise the
installation of the Shadowclad sufficiently strongly, appeared to her to
approve the method of installation which he had previously criticised to
her, and spoke sometime alone with the builder. In an email sent by her
on 25 June 2009 (apparently to Mr Weir) she described how she had said
to Mr Taverner (in response to his failure to criticise the appearance of the
Shadowclad) “would you like a picture of this put on the internet as an
advertisement for your product and company?” Her email asserted that
Mr Taverner said in reply “your credibility is in question now” (“with a nasty
look”), and all of this distressed Elizabeth Bourne. She was also
concerned that faulty installation may have resulted in her warranty with
Carter Holt Harvey being voided.
[25] After that Mr Weir communicated with Elizabeth Bourne, reporting an
undertaking by Carter Holt Harvey to issue a 25 year warranty for the
Shadowclad, so long as a few “small issues” were rectified. Mr Weir
describes those, and suggested he commence the work on 20 July, if that
suited Ms Bourne. He also undertook to arrange with Mr Taverner to
inspect the work after completion, and to put the promised 25 year
warranty in writing.
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[26] It appears from later communications that between 20 and 22 July 2009,
Mr Weir purported to carry out the requested rectification work at her
home. On 23 July 2009 she complained to him, and to the BSA, of
damage done to her house during the performance of that rectification
work, and informed him that she had taken photographs of it. On 24 July
2009 she received correspondence from APIA Home Insurance, advising
that, in respect of her claim for warping of the external wall cladding, made
on her home insurance policy, that it had been assessed by a Mr Hoskins,
who had reported to APIA that:
The wall cladding sheets were not quite completely nailed as directed
by the manufacturer, which had resulted in movement of the wall
cladding;
That movement was allowing moisture to penetrate resulting in the
nails at the joints being pulled at the east and west walls;
The cladding had no damp proof course at the lower edge or ant
capping to prevent infestation of termites or the progression of water;
Water had not penetrated into the cladding from the roof, or through
the cables from the disc (now removed) on the roof;
Had the material been installed in accordance with the
manufacturer‟s requirements, it would have been water tight and
therefore sealed;
Penetration was not due to storm and tempest but the occurrence
that the sheets were incorrectly installed. The letter advised that
there had been no storms/rainwater damage to her home, and her
claim was rejected.
[27] Next, on 29 July 2009 she received a report from Mr Dalla Via of Wood
Products Australia, reporting his findings from a visit “last Thursday”
(presumably on 23 July 2009) from which he concluded that the inspection
that day had demonstrated that the Shadowclad at her property had still
not been installed in accordance with Carter Holt Harvey product
installation literature. The report advised of 8 specific matters, in which
installation was still not in accordance with the Carter Holt Harvey
literature, and that to ensure the long term durability, structural adequacy
and aesthetics of the project, those items must be addressed.
[28] On 2 August 2009 Elizabeth Bourne complained to the Premier about the
conduct of the BSA, and on 3 August 2009 BSA Inspector Geoffrey Barrett
reported on an inspection of Ms Elizabeth Bourne‟s house, carried out on
31 July 2009 by Mr Barrett, in company with Bob Clayton of the BSA. Mr
Barrett‟s report noted that Mr Weir complained that he had performed the
rectification works in accordance with verbal instructions from Mr
Taverner, and that Mr Taverner‟s apparent satisfaction with what was
done conflicted with Mr Dalla Via‟s subsequent inspection. Mr Barrett‟s
report recorded that he had told Mr Weir that the installation of the
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Shadowclad was not in accordance with the manufacturer‟s manual, and
Mr Barrett‟s report concluded that Mr Weir had not rectified the cladding
installation as required, to satisfy the request to rectify issued by the BSA.
He noted that Mr Weir proposed to speak to the manufacturer, and get
back to the BSA.
[29] On 4 August 2009 the BSA issued a direction to rectify, to Weirkids Pty
Ltd, in direction number 33357, (presumably under the power given by
section 72 of the Queensland Building Services Authority Act 1991). That
direction asserted that:
“The installation of the Shadowclad Grooved exterior wall cladding to all
elevations of the building is not in accordance with the manufacture
installation details in regard to:
Inadequate provision of horizontal joints at junction of sheets and
metal flashings; and
Fixing spacings in several locations is inadequate.”
[30] It also asserted that “Excessive Deflection of Shadowclad Grooved
exterior wall cladding is evident on various elevations”.
[31] On 19 August 2009 Bob Clayton swore an affidavit filed in proceedings
being conducted in the Commercial and Consumer Tribunal in application
QR114-09. Those included applications to review the decisions of the
Authority, respectively dated 5 December 2008 and 17 April 2009, not to
issue directions to rectify Elizabeth Bourne‟s home to Mr Weir. Mr
Clayton‟s affidavit describes how, having read a statement of reasons of
the BSA dated 3 August 2009, he had determined that the BSA needed to
reconsider its position, and to issue Weirkids Pty Ltd with a formal
direction to rectify, due to the nature of the defective building work. Mr
Clayton‟s affidavit swore that he had the opinion that the first and second
decisions in the matter (those on 5 December 2008 and 17 April 2009)
were incorrect, that the installation of the ply cladding was faulty and
defective, and that it was not installed in accordance with the
manufacturer‟s instructions with regard to the inadequate provision of
horizontal joints at juncture of sheets and metal flashing, and fixing spaces
in several locations being inadequate, and that the ply cladding installation
was “category figure 1 defective building work”.
[32] On 8 September 2009 Mr Clayton established, after email exchanges with
Elizabeth Bourne, that Mr Weir of Weirkids Pty Ltd had not complied with
the direction to rectify issued on 5 August 2009, and had neither attended
at the site, nor done any work. He had made no contact at all. Mr Clayton
advised Elizabeth Bourne that accordingly her claim would now be
assessed under the BSA‟s statutory insurance scheme. Mr Clayton
likewise advised Mr Weir, of Weirkids Pty Ltd, that Weirkids might have 2
demerit points placed upon its licence, and that the BSA reserved its right
to take further action to limit any loss incurred by BSA in having the works
rectified.
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[33] On 11 September 2009 Mr Clayton informed Elizabeth Bourne that her
claim under the statutory insurance scheme had been accepted, and that
the next step was to arrange a tender meeting for the proposed
rectification. Although he did not explain this to her, presumably he had in
mind the BSA exercising its powers under section 74 of the Queensland
Building Services Authority Act 1991, empowering the BSA to invite
tenders from licensed contractors to carry out unrectified building work.
Elizabeth Bourne responded by email, asking about “what is not included”,
such as “underlying damage, uncovered when work does happen”. She
also asked about her rights or options “about change of products”,
describing how the manufacturer, Carter Holt Harvey, was refusing to deal
directly with her, and only would do so through the BSA.
[34] Then followed correspondence between Elizabeth Bourne and the BSA,
and in which a document described as “Scope Of Works For Defective
Building Work” dated 11 September 2009, was provided to her, with an
attached explanation that it was a tender for the reasonable cost of
rectification by licensed contractors for the work required to rectify the
defective residential construction work detailed in the complaint form.
Elizabeth Bourne queried both the file number appearing in the document,
and its content, contending that the “scope of work” should specify that
any Shadowclad linings removed should be replaced by new Shadowclad
exterior wall linings. Eventually, on 25 September 09, Mr Wright of the
BSA caused a second scope of work to be issued, dated 24 September
2009, specifying (as requested by Elizabeth Bourne) that removed
Shadowclad exterior wall linings be replaced by new Shadowclad exterior
wall linings and (as had the earlier scope of work issued on 11 September
2009), asking for quotes to “remove roof flashings to ends and store for
future use”, and further quotations to “replace roof flashings in accordance
with acceptable building practice”. The new document had both old and
new file numbers.
[35] Elizabeth Bourne then applied to the Commercial and Consumer Tribunal
in proceedings numbered QR257-09 to review the “second scope”. This
was despite having been advised on 25 September 2009 by Mr Wright, of
the BSA, that because the scope of work was to be provided to tendering
contractors, its only attachment would be the manufacturer‟s specifications
for installation, and that prior reports were not relevant, as the work which
they related to was being removed in its entirety. He disputed Elizabeth
Bourne‟s contention, previously made to the Authority, that it was hiding
information from potential tenderers, replying that “BSA has not included
previous reports with tender documents as they have no meaning to
rectifying builders who will be removing the defective work to which they
relate”. On 18 January 2010, Elizabeth Bourne complained to the Premier
that the BSA legal team had learnt that she had previously made
accusations to the Premier of misconduct and fraudulent activities by the
BSA (in her complaint to the Premier sent Sunday 2 August 2009).
[36] On 25 February 2010, a compulsory conference was held in five matters
which had consolidated into one matter numbered QR114-09, that
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conference being held in this Tribunal. That conference resulted in a
direction in these terms:
“1. Leave is granted for the applicant to withdraw her application.
2. The Queensland Building Services Authority will not ask the
applicant to contribute any monies for the performance of work
under the scope of works for defective building work attached to the
Queensland Building Services Authority decision of 25 September
2009 as varied by the Queensland Building Services Authority in
accordance with the relevant edition of the Queensland Building
Services Authority policy conditions.
3. The Queensland Building Services Authority will perform a final
inspection of the rectification works and provide a written copy of the
report to the applicant.”
[37] This agreement was not an end to the problems between the BSA and
Elizabeth Bourne. On 18 March 2010 Elizabeth Bourne agreed to site
access being granted, to tenderers on 25 March 2010, but complained to
the BSA that Bob Clayton was involved in the process, which she
considered inappropriate, and complained that she considered he had
mislead “the Tribunal”. On 30 March 2010 she complained to Mr Wright of
the manner in which Mr Clayton had conducted a meeting on her property
on 25 March 2010 with 3 potential tenderers. Her complaints included that
Mr Clayton had stated to the tenderers that he had sent letters to Carter
Holt Harvey, and that “if they don‟t inspect”, he will. (In fact, unknown to
either Mr Clayton or Elizabeth Bourne on that date, Carter Holt Harvey
had replied on 25 March 2010 to the BSA, declining an invitation to
inspect the rectification works to be undertaken by one of the BSA‟s
rectifying builders). She also complained that Mr Clayton had “fail to
inform the tenderers of all known damage” to include in the quotation, and
had told the tenderers that anything (any further damage found on the
removal of the cladding) must be “written up as variations”. She
apparently feared that the BSA would argue that damage discovered
when cladding was removed would be identified by the BSA as “new”
damage when, Elizabeth Bourne considered, “they are already reported
as Defective and known”. She also complained that Mr Clayton had told
the tenderers not to include for “sarking and not to remove or replace the
sarking”. She said that Mr Clayton had specified that tenderers were not
to quote for any new flashings, and “no action on any of the roof or
flashings, if it is too short”. She considered that that was an invitation to
potential tenderers to hide damage, and an attempt to conceal from them
previous views expressed about the flashings being too short, and
concealing from potential tenderers existing and known defects in the roof.
[38] In a separate communication that same day (30 March 2010) she gave Mr
Wright and the BSA 14 days to respond to the issues she had raised. She
complained the BSA were defrauding her, and that Mr Clayton had
fraudulently tampered with his own reports, and hid incriminating evidence
from “the Tribunal”. The BSA responded, via Mr Wright, by letter dated
7 April 2010, noting that Carter Holt Harvey had no obligation or legislative
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requirement to inspect the (rectified) work, and that they had declined an
invitation from the BSA that they do so. The letter advised that because
the work performed by Weirkids Pty Ltd did not include the roof of the
home, the roof was not part of the claim. The letter went on to say that
Weirkids‟ work “did involve the removal and replacement of flashings.
Flashing will be reinstated in a workmanlike manner”. That letter seems to
be the first time the BSA accepted that Weirkids had removed (and
replaced) the flashings, when installing the Shadowclad, which point
Elizabeth Bourne had repeatedly asserted. Regarding the sarking, the
letter advised that sarking
“can not be viewed at present as it is under the current cladding. The
material used should be a perforated sarking that allows the space
between the sarking and cladding to breathe. If it is not perforated it will
be replaced, if it is perforated it will be left in place unless it is torn or
damaged. A few nail holes created by the original claddings installation
will not affect the sarkings performance.”
[39] Elizabeth Bourne replied on 11 April 2010, contending that Mr Wright was
a party to deliberate negligence, and she was satisfied that the BSA did
not intend to remove all defective work in its entirety. She instructed the
BSA to immediately stop all tenders and actions regarding her property,
and not to accept any quotes or make any decisions. Mr Wright replied on
14 April 2010, accepting her instructions that no further action be taken on
the matter, unless subsequently advised otherwise.
[40] That appears to have been the end of communications until 12 February
2011, when Elizabeth Bourne wrote to Jason Smith of the BSA,
complaining of further water entry into her home, through the first reported
defective roof/cladding area at the back of her house. She also contended
that Mr Wright had been guilty of fraud, contended that the manufacturer‟s
staff had colluded with the BSA officers Wright, Clayton and Blumel, and
accordingly requested a change of product, and compensation for that.
She also asked for a full inspection immediately of the water entry area.
[41] In a further email dated 13 February 2011 she specified that she wanted a
product called Bluescope/Lysaght Custom Orb, rather than Shadowclad
“or any product from Carter Holt Harvey – who have acted dishonestly
against their product, myself and my property.” She asked to be
“renumerated for the difference between the two products – costings and
full quotes”, and made various other requests.
[42] This resulted in the first letter from the BSA to Elizabeth Bourne, which is
the subject of the present application for leave to appeal or appeal,
namely a letter dated 23 February 2011 (GAR105-11). In that letter the
author, Jason Smith, writing on behalf of BSA, advised that although
10 months had passed since Mr Wright had sent his letter dated 14 April
2010 confirming her instructions to the BSA to stop work on her claim, the
BSA was willing to tender the scope of work dated 24 September 2009
again. The letter advised that
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“any damage to your property as a direct result of the defective
installation of the Shadowclad exterior will be rectified by the BSA under
insurance. This will be done by variations to your scope of work and
subsequent approvals to insurance claim. The extent of this damage and
the reasons behind it can not be known until the rectifying builder
commences rectification on the cladding.”
[43] The letter also advised that BSA was willing to change the scope of work
from requiring the installation of new “Shadowclad”, and instead to require
“Custom Orb” be installed, but would not be paying her for the increase in
costs. The letter explained why. Regarding Elizabeth Bourne‟s requests
for an itemised list of all the work to be performed, the letter advised that
“any damage to her home as a direct result of the defective installation of
the Shadowclad cladding system, such as water penetration, will be
identified by works commenced on the rectification of the cladding. Such
work would be approved by BSA through variations to the scope of work.”
[44] The letter advised that BSA would issue the scope of work to 2 of its
rectifying contractors from its approved panel, and that if she wished to
use her own Builder, she was welcome to provide the scope of work to
that builder and ask the builder to quote as well. It advised “at the end of
the day it is your decision on which contractor you wish to engage to
complete the rectification”.
[45] Regarding her request for an independent inspection of all work, to be
done other than by building inspectors, she was advised that she was
welcome to engage any professionals she wanted to review the
information given to her by the BSA, or the work of the rectifying
contractor; however, the BSA would not pay for that.
[46] On 13 March 2011 Elizabeth Bourne informed the BSA that Custom Orb
was cheaper than Shadowclad, and asked for an explanation from the
BSA as to how damage underlying the sarking could be assessed without
removing the sarking. She contended that she had stopped the last
tender process for the reason that Mr Clayton had given strict instructions
to the tenderers not to remove any sarking, which, Elizabeth Bourne
argued, was an attempt to hide or not uncover known damage.
[47] The BSA replied on 15 March 2011 by Jason Smith, advising that
quotations it had received from both Shadowclad and Custom Orb
satisfied BSA that their prices were comparable, but that one supplier
offered Custom Orb at a discounted price. The letter advised that if
Custom Orb cladding was cheaper than Shadowclad, that she was not
entitled to a refund, because the BSA would still itself incur a cost in
installing it. Using either system involved a cost that the insurance
scheme would pay for. She was entitled to have new Shadowclad
installed, as that was the product specified in her contract. If she wanted
an alternative product, that was her choice, but she was not entitled to
relief if it was a cheaper product.
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15
[48] The letter continued with the advice that it was impossible to scope the full
extent of the damage caused by the defective installation of the cladding
system, until the cladding was removed. It was not possible to remove the
existing cladding and inspect the building and if further defects were found
“scope the extra work and then reinstall the defective cladding”. It advised
that
“BSA will produce a scope of works for the damage we can see. The
scope of works will refer to the fact that further defects may exist in the
wall once the cladding is removed and that the rectifying contractor is to
identify these and submit variations to the BSA if this is the case. If it is
found there is damage to the sarking or water damage to the inside of
your home and these defects were as the result of the defective cladding
installation, BSA will approve these variations and your insurance claim
will increase accordingly. The rectifying contractor will then rectify this
work as well before they install the new cladding. It is simply not possible
to do it any other way. We cannot scope works or defective works that
we can not see. It is not feasible to remove the existing defective
cladding, inspect and then reinstate the same defective cladding, and
remove it again so it can all be rectified.”
[49] The letter continued, “I again reiterate to you that any internal damage to
your home that was caused as a direct result of the installation of the
cladding system will be included in your claim and will be rectified by your
rectifying contractor.” The letter suggested that a further site meeting be
conducted at the property at which Mr Smith would attend with Mr Clayton,
the Manager of Technical Resources, who had extensive experience in
the matter. Mr Smith also proposed to bring along another building
inspector, who could verify Mr Clayton‟s advice.
[50] Elizabeth Bourne responded advising that there was no need for any more
inspections of the cladding and that the proposed need for it was “totally
off the planet, and didn‟t make any sense.”
[51] On 22 March 2011 Mr Jason Smith of the BSA advised (this letter was the
basis of GAR089-11) that the offer to inspect the property had been made
because Elizabeth Bourne had made numerous complaints about further
defects to her home over the last few weeks, and it had been over
12 months since the last inspection by the BSA. The letter continued that
if further defects had been found on that inspection the BSA would have
had the opportunity to update the scope of work, and an inspection would
have given Mr Smith an opportunity to see the defects first hand and
discuss the complaints with Elizabeth Bourne in person, and that the offer
to bring along another inspector with Mr Clayton had been made to allay
Elizabeth Bourne‟s fear or bias against or within Mr Clayton, which fears
the BSA had always rejected. It stated that since the BSA was unable to
undertaken any such inspection, it had no choice but to use a previous
scope of work, which in its final form had been dated 12 March 2010. He
repeated the advice that Elizabeth Bourne was entitled to ask for a
Shadowclad system to be installed, and that the BSA was prepared to
change the scope of work to refer to a cheaper metal made cladding
system, if that was what she wanted, but because the BSA was still
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required to pay for that item, then Elizabeth Bourne would not get
compensated for the fact that she chose a cheaper product. He further
advised that apart from the removal and reinstatement of the flashings to
the roof, which had to be reinstalled as part of the installation of a new
cladding system, the BSA insurance scheme would not be paying for any
rectification work on her roof. She was invited to accept the scope of
works dated 12 March 2010 and to advise which cladding system she
would like referred to in the scope. The BSA would then retender the
scope of works to members of the rectification panel, and she would be
given the opportunity to provide the scope of work to contractors of her
choosing. The BSA said it would review the tenders and provide her with
an approval amount, and would advise which contractor had provided the
cheapest quote. She would then be able to sign a contract with that
contractor and work would begin on rectifying her defective cladding. The
letter repeated that if damage was found to internal walls or sarking,
caused by the original defective cladding, that would be rectified by the
rectifying contractor by way of BSA approved variation.
[52] Elizabeth Bourne‟s response on 1 April 2009 described her as being in a
state of disbelief and total shock. This was said by her to be due to the
refusal to tender for repairs to the flashing.
[53] Elizabeth Bourne‟s contention in this proceeding is that the letters dated
23 February 2011 and 22 March 2011 each contained decisions
reviewable by this Tribunal. I agree that the letter dated 23 February 2011
contains decisions such as that:
The BSA would retender for the “scope of works” issued on 24
September 2009;
And would rectify all and any damage to the house happening as a
result of the defective installation of Shadowclad;
Elizabeth Bourne could get a builder to quote for that rectification
work;
Elizabeth Bourne would have to pay any extra costs for a different
cladding that she elected to have used.
[54] Likewise on 22 March 2011 decisions can be discerned:
That the only roof work to be done by the tenderers under insurance
was to remove and replace the flashings (in an workmanlike
manner);
BSA would not pay Elizabeth Bourne the difference if she chose a
cheaper cladding then Shadowclad.
[55] Other than those, the “decisions” in those letters are decisions which have
been made earlier, and have already been made the subject of
applications to review conducted by or prosecuted by Elizabeth Bourne in
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the Commercial and Consumer Tribunal. In particular, the scope of works
issued on 25 September 2009 was the subject of the application to review
numbered QR257-09 in that Tribunal, and ultimately consolidated in
review QR114-09, which had been withdrawn on 25 February 2010, at the
compulsory conference. That withdrawal was confirmed in a decision
issued on 1 March 2010 in this Tribunal. An application under
section 138, to reopen the proceedings which were QR114-09 and
QR257-09, was heard and determined on the papers on 16 November
2010, and refused. The QBSA contends, in its written submission in this
appeal, that Elizabeth Bourne is attempting to have this Tribunal conduct,
in this appeal, a de facto review of those earlier review applications,
settled by consent in February, but not reopened in November 2011.
There is some force in that submission, but the difficulty with this appeal is
that the learned Member, who struck out applications GAR081-11 and
GAR105-11, gave no reasons other than that “no reviewable decision had
been made out” by Elizabeth Bourne. The respondent, in its written
submission in this appeal, argues that the learned Member could be
understood as exercising the power in section 47(3) of the Queensland
Civil and Administrative Tribunal Act 2009 to, on the Member‟s own
initiative, strike out a proceeding the Member considers to be lacking in
substance (that power is given by section 47(1)(b)).
[56] There is force in that submission as well. Elizabeth Bourne‟s constant
advocacy to the BSA has resulted over time with her obtaining a direction
to rectify, and then a decision to issue a tender, for rectification by
licensed builders other than Weirkids Pty Ltd, to rectify the installation of
the cladding which Mr Clayton has determined to have been defectively
installed. Elizabeth Bourne has been very critical of Mr Clayton, and has
complained about him, and some of her complaints have been referred to
the CMC. If Weirkids were correct in Mr Weir‟s opinion that the flashings
originally installed were defective, then that is not a fault for which Mr Weir
is responsible. Elizabeth Bourne describes herself as a pensioner, and it
is clear that she has considerable distrust of the BSA. Much of that seems
to derive from the different opinions that have been expressed by different
inspectors who have seen her home, and the work done by Weirkids.
Different inspectors can ultimately hold different opinions, and a
disagreement between Mr Clayton and Mr Blumel about the installation of
the cladding is not evidence that either of them is dishonest or corrupt.
[57] The two applications lodged in this Tribunal (GAR105-11 and GAR89-11)
do not identify any specific decision or decisions which Elizabeth Bourne
wants reviewed. Instead, those applications merely identify each
respective letter as a decision, and each application asks, as the first
request, for this Tribunal to “Issue a Direction for Roof – move to
Insurance Claim”. I understand this to be an application that this Tribunal
(exercising its powers under section 77(g) of the Queensland Building
Services Authority Act 1991), order rectification of defective or incomplete
work to the roof. This is not a direction the BSA has been empowered to
give at any time, because of an absence of evidence of any work having
been done by Weirkids Pty Ltd on Elizabeth Bourne‟s roof, or any damage
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caused to that roof by their work. The same observation applies to the
second order requested in both applications for review, namely an order
that “work for both the Cladding and Roof can be quoted done together,
being the full exterior of two story home”. That again assumes defects in
the roof can be traced to the consequences of conduct by Weirkids Pty
Ltd, which has yet to be established by evidence. Those two orders,
sought in similar terms in these applications, appear to be lacking in
substance.
[58] In application GAR105-11 the third statement by Elizabeth Bourne, of
what she wants to happen, requests “compulsory inspection of the
structure”. I understand this to mean an inspection for the scope of works
to be issued to potential tenderers, and this is something which has
already been offered by the BSA, and rejected by her as unnecessary.
The fourth description of what she wants to happen is that the scope of
work include all known defects listed clearly, and that quotations be given
without leave for verbal instruction. I understand this to be a request that
all defects identified by any prior inspection be included in the scope of
work issued to tenderers, and described, so that no further verbal
instructions can be given on site by, for example Mr Clayton or any other
inspector from the BSA. But I consider that while Elizabeth Bourne‟s
anxiety is understandable, the BSA have rather persuasively asserted in
their letters to her, that the history of the inspections and opinions given by
others is irrelevant to the task to be performed by the tenderers, namely to
remove the defective cladding and replace it with new cladding. Likewise
her description that she wants an “independent inspection – of underlying
damage” is an outcome which has been rejected already by the BSA,
who, rather reasonably, make the point that they cannot ask for tenderers
to quote to repair defects which their inspectors have not seen. There
may or may not be underlying damage beneath the defectively installed
cladding; but until it is found, it is unreasonable to expect the BSA to invite
tenderers, and unrealistic to expect tenderers to be able to do so, to quote
to repair.
[59] Both applications, in their description of what Elizabeth Bourne wants to
happen, include that “all defective work of this builder – to be actioned to
builder Weir Kids, not a new builder.” I do not understand why Elizabeth
Bourne wants Weir Kids to perform the repair of the defective work carried
out in 2008, when that same company has not complied with a request to
rectify, issued on 23 June 2009, nor a direction to rectify on 5 August
2009. Further, the voluminous file prepared by Elizabeth Bourne
demonstrates that Mr Weir‟s presence at her property usually results in
disagreement.
[60] This examination of each of the matters that Elizabeth Bourne wants to
have happen points to her outcomes being little more than a combination
of wishful thinking, and distrust of the BSA, inspired by a determination to
respond to the points made by BSA in the two letters to her, defending the
terms of the scope of work and the decisions which underlay its terms.
That also identifies her applications as lacking in substance. Other
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outcomes she asked for or wants to have happen include to have the “the
Tribunal make all decisions, and make the BSA be accountable and clear,
of action or defects”. This Tribunal has a review function, which is much
more limited in scope than the powers of the BSA. It is impracticable to
expect that this Tribunal can make all the decisions that might be needed
to be made on the site, and in respect of the advice to be given to each
tenderer, and the BSA, by and large, has been responsive and
accountable to Elizabeth Bourne in its dealings with her.
[61] Accordingly I am satisfied that the learned Member was entitled to
conclude on the material that the proceedings in GAR089-11 and
GAR105-11 were lacking in substance, and should be struck out. To the
extent that this appeal is on questions of fact, no facts have been raised
which would support granting leave to appeal. The only issue of fact to be
settled, identified by the lengthy dealings between the parties, is whether
the roof flashings (whether originally defective or not) have been damaged
in consequence of Weirkids‟ work. If so, Elizabeth Bourne can fairly argue
that the scope of works (requiring the flashings to be replaced in
accordance with acceptable building practice) entitles the tenderers to be
paid by the BSA for the cost of installing proper flashings. If not, Elizabeth
Bourne is obliged to pay that cost. But the answer to that question cannot
be given by this Tribunal in a review of the scope of works. It depends on
what is found when the cladding is removed. The terms of the existing
scope of work, which requires the flashings be replaced in accord with
acceptable building practice, prevent damaged or “too short” flashings
being installed. Elizabeth Bourne‟s current position will not be improved
on any review of those terms.
[62] Additionally, there may be a problem for Elizabeth Bourne, caused by the
provisions of section 86(2)(c) of the Building Services Authority Act 1991.
That provides that this Tribunal must not review a decision of the Authority
about the scope of works under the statutory insurance scheme, if 28 days
have elapsed since a decision was served on the building contractor and
the contractor has not, within that time, applied to review the decision.
The material in Elizabeth Bourne‟s lever arch evidence file discloses that
Weirkids Pty Ltd (the building contractor) was informed on 8 September
2009 of BSA‟s decision to assess the matter under the home warranty
insurance scheme, and advised that decision might be reviewed within
28 days by application to the (Commercial and Consumer) Tribunal. It
appears that it made no application to review. If that section applies, this
Tribunal is forbidden from reviewing the two decisions which Elizabeth
Bourne wishes it to review.
[63] Elizabeth Bourne‟s written submissions received by this Tribunal on
5 December 2011 show that she read the provision of s 86, and she did
make submissions about s 86(2)(c). I agree with the obiter comments
made in Kirtley v QBSA [2007] QCATB 157 at [28], that the better view is
that s 86(2)(c) has effect only on a builder who has failed to apply in time
to review a scope of work, and does not apply to an application by a
home-owner, whose right to apply has been given in s 86(1)(g).
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[64] To the extent that this is an appeal on a matter of law, no error of law has
been shown to exist. For those reasons I am satisfied that the appropriate
order in this matter is that leave to appeal is refused and the appeal
dismissed.
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Official source: https://www.sclqld.org.au/caselaw/QCATA/2012/102