Chuang v New Legend Global Developments Pty Ltd [2017] NSWCATCD 101

Chuang v New Legend Global Developments Pty Ltd [2017] NSWCATCD 101

The builder breached statutory warranties by abandoning the works incomplete, performing defective work, failing to carry out the work with due diligence, and failing to comply with licensing, contract, insurance and approval requirements. The builder also engaged in misleading and deceptive conduct by representing that it could lawfully contract for the works and by inducing the applicant to sign a cost-plus English contract said to reflect the fixed-price Preliminary Agreement. Rectification by the builder was not appropriate because it lacked the necessary licence, had abandoned the works and did not participate. The applicant was entitled to compensation measured by the cost to...

Jurisdiction
Australia
Judgment Date
20 November 2017
Procedural Posture
Home Building Claim in the Consumer and Commercial Division of the Civil and Administrative Tribunal of New South Wales / Final Hearing; Principal Judgment
Outcome
Application allowed in part; compensation, relief from project management fees, and ordinary costs awarded; indemnity costs refused.
Legal Topics
['compensation for Incomplete and Defective Residential Building Work' 'statutory Warranties Under the Home Building Act 1989' 'misleading and Deceptive Conduct' 'leave to Be Legally Represented' 'ex Parte Hearing' 'project Management Fees' 'costs of Expert Report and Proceedings']
['home Building' 'consumer Law' 'practice and Procedure' 'costs'] ['compensation for Incomplete and Defective Residential Building Work' 'statutory Warranties Under the Home Building Act 1989' 'misleading and Deceptive Conduct' 'leave to Be Legally Represented' 'ex Parte Hearing' 'project Management Fees' 'costs of Expert Report and Proceedings']

Case Brief

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Procedural Posture

Home Building Claim in the Consumer and Commercial Division of the Civil and Administrative Tribunal of New South Wales / Final Hearing; Principal Judgment

Legal Issues

  1. 1 ['Whether the building works were residential building works to which the Home Building Act 1989 applied.' 'Whether the builder breached statutory warranties implied by section 18B of the Home Building Act 1989.' 'Whether the builder engaged in misleading and deceptive conduct contrary to section 18 of the Australian Consumer Law (NSW).' 'Whether the homebuilder mitigated her loss and gave the builder proper opportunity to address the alleged breaches.' 'Whether any defence under section 18F of the Home Building Act 1989 was available.' 'What remedy should be ordered, including whether rectification by the builder was appropriate under section 48MA of the Home Building Act 1989.' 'Whether the applicant should receive costs, including expert report costs and indemnity costs.']

Ratio Decidendi

The builder breached statutory warranties by abandoning the works incomplete, performing defective work, failing to carry out the work with due diligence, and failing to comply with licensing, contract, insurance and approval requirements. The builder also engaged in misleading and deceptive conduct by representing that it could lawfully contract for the works and by inducing the applicant to sign a cost-plus English contract said to reflect the fixed-price Preliminary Agreement. Rectification by the builder was not appropriate because it lacked the necessary licence, had abandoned the works and did not participate. The applicant was entitled to compensation measured by the cost to...

Court Disposition

Application allowed in part; compensation, relief from project management fees, and ordinary costs awarded; indemnity costs refused.

Orders

  • ['The applicant is granted leave to be legally represented at this final hearing of the matter.' 'Pursuant to section 48O(1)(a) of the Home Building Act 1989 the respondent, New Legend Global Developments Pty Ltd, is to pay the applicant, Pi-Feng Chuang, the sum of $41,994.45 immediately.' 'Pursuant to section...