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Tribunal refuses customers’ push for default ruling against modular home builder

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A Sunshine Coast-based builder of modular homes that is attempting to recover money it alleges is owed from customers has avoided a counter-claim in a tribunal ruling.

Dream Modular Homes Pty Ltd has applied to the Queensland Civil and Administrative Tribunal for the recovery of money it claims is owing by the respondents, Stephen Horseman and Rosemary Fitzgerald, who engaged the company for domestic building work.

A ruling by QCAT senior member Ian Brown delivered on April 11 but not published until May 28 outlines that the builder’s claim was filed in August, but that the respondents filed a counter-application in October.

“The respondents say that the works have not reached practical completion and that the applicant has no entitlement to the amount claimed,” it says.

“The respondents say that they are entitled to claim as a set-off an amount for loss of rent occasioned as a result of the delay by the applicant in bringing the works to practical completion.

“In the alternative, the respondents say that they are entitled to set off against the applicant’s claim an amount for late completion damages.”

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The ruling says the respondents then applied in January for a default decision as a result of the builder failing to file statements of evidence and a response to the counter-application in accordance with tribunal directions.

The response from the applicant conceded it had delayed in filing statements of evidence but had been hampered by other factors.

“Since the commencement of the proceeding, three persons have left the employ of the applicant, which has significantly impacted the ability of the applicant to locate relevant evidence and verify factual allegations made by the respondents,” it states.

“Upon undertaking review of the amounts claimed in the counter-application, the applicant formed the view that certain matters raised by the respondents ‘could have merit’.

“The applicant instructed its solicitor to make an open offer to the respondents reducing the amount claimed by the applicant by $31,286.55 and a subsequent open offer that each party walk away bearing their own costs.”

The ruling does not state how much the builder was claiming.

The tribunal, in refusing the January application, said it was not satisfied the consequences of the applicant’s failure to comply with tribunal directions warranted a decision by default.

“It may be accepted that the applicant’s claim is an arguable one. It may also be accepted that the applicant has not acted with celerity in the prosecution of its claim. Having made these observations it should be noted that this is not a matter in which the applicant has simply done nothing while failing to comply with tribunal directions,” it states.

The ruling ordered that the dispute progress to a compulsory conference.

The website of Dream Modular Homes says it is based in Chevallum.

“We’re an award-winning team of designers and builders passionate about redefining the way we build and live in Queensland,” it says.

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