Lengthy Delays At VCAT Impacting Justice
Introduction
VCAT has exclusive jurisdiction to hear and determine domestic building disputes between a builder and an owner or a builder and a subcontractor in the state of Victoria.
However, the exclusive jurisdiction of VCAT has recently been questioned in light of the significant delays parties are experiencing at VCAT.
Impresa Construction Case
In the recent case of Impresa Construction Pty Ltd v Oxford Building Group & Ors [2021], the court discussed whether VCAT is fulfilling the objectives of the Domestic Building Contracts Act 1995 (Vic), namely to enable disputes involving domestic building work to be resolved as quickly, efficiently and as cheaply as is possible, given the significant delays being encountered by parties at VCAT including the vacation of hearing dates.
Further, the court discussed whether the public policy rationale underpinning section 57 of the Act appears to be frustrated given VCAT’s current state of affairs:
The VCAT website states that “due to COVID-19…time frames do not apply” and that VCAT will “assess your application and contact you within 8-10 weeks”.
As at 30 April 2020, approximately 400 VCAT matters were adjourned, with VCAT venues (including VCAT counters) closed to the public and no face-to-face hearings being scheduled.
VCAT’s Building and Property List vacating hearings of long and complex cases from October 2021 onwards due to a lack of much needed resourcing (which was announced prior to Lockdown 6.0).
Conclusion
Notwithstanding the critical comments made by the court with respect to the current difficulties and delays parties are experiencing at VCAT, VCAT continues to have jurisdiction in relation to domestic building disputes as the court’s comments are made in passing and do not therefore change the application of section 57 of the Act.
Finally, it is anticipated that VCAT will overcome its current difficulties with increased funding and resourcing.
To learn more about how current delays at VCAT may impact your case or if you require legal assistance, please contact Chris Moshidis, Director and Principal Lawyer on +61 9521 7956 or chris@urbanlawyers.com.au.