The Correct Forum for Domestic Building Disputes in Victoria?
Latest4 Dec, 2024 1023
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What is the appropriate forum to bring an action under the Domestic Building Contracts Act 1995 (Vic)? 1. Given the extensive backlogs and delays experienced by the Victorian Civil and Administrative Tribunal (‘VCAT’) resulting from the COVID-19 pandemic, legal practitioners, in recent times, were able to commence proceedings in the County Court of Victoria for domestic building disputes under the Domestic Building Contracts Act 1995 (Vic) (‘DBC Act’). This was despite VCAT being chiefly responsible for resolving domestic building disputes.[1] 2. Practitioners were able to bring actions under the DBC Act in the County Court of Victoria, in reliance of the principles established in 2021 in the cases of Impresa[2] and Uber[3], without the risk of the proceedings being stayed[4] in line with the DBC Act.[5] 3. In light of Her Honour Judge Kirton’s findings in the case of Mooney[6] in July 2024, VCAT is now the appropriate forum to commence legal proceedings for domestic building disputes under the DBC Act at first instance, and not the County Court of Victoria. 4. Her Honour found that: a. the principles established in Impresa and Uber were ‘’made at a time when VCAT was significantly under resourced and unable to meet its obligations (at least in respect of domestic building cases) to enable disputes involving domestic building work to be resolved as quickly, as efficiently and as cheaply as is possible having regard to the needs of fairness’’.[7] b. ‘’the case management considerations identified [in Uber[8] and Impresa[9]] are no longer relevant today’’ given VCAT’s appointment of a ‘’significant number of new members since 2021 with an aim of clearing the backlog and reducing waiting times’’.[10] c. ‘’VCAT’s resources have improved since 2021. As at the date of this application, there is no reason for me to find that VCAT cannot hear this action. This is exactly the kind of claim that parliament intended the Domestic Building Tribunal be tasked with adjudicating when the DBC Act was first enacted.’’[11] 5. Practitioners seeking to commence proceedings in County Court of Victoria for the purposes of avoiding significant backlogs in the Building and Property List of VCAT are no longer able to do so. 6. Further, Her Honour Judge Kirton made it clear that VCAT is the appropriate forum for domestic building disputes to allow for parties to take advantage of the benefits of VCAT as a forum that provides ‘’a single, inexpensive, time-efficient and expert forum for the resolution of domestic building disputes … where less formal proceedings are more likely to reach the heart of the matter than the full panoply of the law’’.[12] [1] Domestic Building Contracts Act 1995 (Vic) s 57. 
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