DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 50A Proceedings and costs

DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 50A

    (1)     If the Director institutes or defends proceedings on behalf of a building owner under section 50—

        (a)     the Director may settle the proceedings either with or without obtaining judgment in the proceedings; and

        (b)     if a judgment is obtained in the proceedings in favour of the building owner, the Director may take any steps that are necessary to enforce the judgment; and

        (c)     subject to subsections (2) and (3), an amount (other than an amount in respect of costs) recovered in the proceedings is payable to the building owner; and

        (d)     an amount in respect of costs recovered in the proceedings is payable to the Director; and

        (e)     subject to subsection (2), the building owner is liable to pay an amount (not being an amount of costs) awarded against the building owner in the proceedings; and

        (f)     the Director is liable to pay the costs of, or incidental to, the proceedings that are payable by the building owner.

    (2)     If the Director institutes, defends or continues proceedings on behalf of a building owner after the building owner withdraws the consent to the proceedings—

        (a)     the Director must compensate the building owner for—

              (i)     any loss suffered as the result of the loss of any settlement offer made to the building owner; and

              (ii)     out-of-pocket expenses incurred by the building owner during the proceedings after the withdrawal of consent; and

        (b)     the Director is liable to pay any amount awarded against the building owner in the proceedings.

    (3)     If the Director institutes, defends or continues proceedings on behalf of a building owner after the building owner withdraws the consent to the proceedings or defence, any amount recovered in the proceedings (including any amount for costs) that exceeds the amount payable to the building owner under subsection (2) may be applied to the payment of the costs of and incidental to the proceedings for which the Director is liable or that are incurred by the Director in relation to the proceedings.

    (4)     If, in proceedings instituted or defended on behalf of a building owner under section 50—

        (a)     a party to the proceedings files a counterclaim; or

        (b)     the building owner is entitled to file a counterclaim—

and the counterclaim is not or would not be related to the proceedings and to the interests of the building owner in the dispute, the Director may apply to the court hearing the proceedings or to VCAT for an order that the counterclaim not be heard in the course of those proceedings.

    (5)     If the court or VCAT makes an order under subsection (4), the court or VCAT may make any ancillary or consequential orders that it considers fair.

Division 8—Domestic Building Dispute Resolution Victoria Trust Fund

New s. 51 inserted by No. 15/2016 s. 6.