The Queensland Building and Construction Commission (formerly the Queensland Building Services Authority) commenced an action against the defendants to recover statutory insurance monies as debt under ss 71(1), 111C(3) and (6) of the Queensland Building and Construction Commission Act 1991 (Qld). The first defendant was the director of Spectrum Pty Ltd at all material times; the second defendant was also a director at certain times. Mehran Pty Ltd entered into a contract engaging Spectrum to undertake domestic building works. Mehran lodged a claim with the plaintiff under the Queensland Home Warranty Scheme for defective and incomplete works carried out by Spectrum. The plaintiff alleged that Spectrum breached the contract by failing to carry out work per its obligations, rectify defects in the works carried out, and unlawfully suspending work under the contract.
The court had to decide: whether the first defendant’s suspension of preliminary works was unlawful; whether the works carried out were defective and incomplete such that Mehran was entitled to terminate the contract; if Mehran was entitled to terminate the contract, the quantum of damages; if Mehran was not entitled to terminate the contract, other relief that should be granted. RS Jones DCJ dismissed the claim against both defendants as the plaintiffs failed to establish the necessary fault on the part of the defendants.
Shane Monks appeared for the defendant, instructed by Peter Ryan Lawyers.
The judgment is available here.