Basham v Fair Trading Administration Corporation [2000] NSWFTT 11

Fair Trading Tribunal New South Wales

CITATION: Basham v Fair Trading Administration Corporation [2000] NSWFTT 11 DIVISION: Home Building Division PARTIES: APPLICANT: Mr Basham RESPONDENT: Fair Trading Administration Corporation FILE NUMBER: BU 1999/5434 HEARING DATES: 23 March 2000 (Case Conference) SUBMISSIONS CLOSED: 14/04/2000 DATE OF DECISION: 18/05/2000

BEFORE: I McDonell Deputy Chairperson LEGISLATION CITED : Home Building Act 1989 Fair Trading Tribunal Act 1998 CASES CITED: Nil CATCHWORDS: Insurance claim declined - major structural defect alleged - claim declined - appeal lodged out of time - no jurisdiction MATTER FOR DECISION: Appeal against decline of insurance claim APPLICANT: REPRESENTATION: Mr K Carmody RESPONDENT: Mr C Pacey ORDERS: 1. Application of Mr Basham filed 17th September 1999 be dismissed.

Reasons for Decision: Short facts 1 Mr Basham employed a builder P A Kuster Pty Ltd to erect a house at lot ... , Young in 1992. Over the intervening years, the owner noticed cracking in the walls of the building.

2 In early 1998, Mr Basham decided to make a claim against the builder for rectification of the defects. He discovered that the builder was no longer resident in the area and could not be located. A report from a structural engineer was commissioned. Based on the report of Mr Simpson of June 1998, Mr Basham considered the damage to the dwelling to be a major structural defect. Classified as such, the defect could be the subject of an insurance claim for a period of up to seven years after construction.