Builder to Pay over $207,000 to Homeowner

Background of the Case

Homeowner Veronica Mary Sumner took legal action against builders Paul and Amanda Nobes regarding the construction of her new home in rural Victoria. The dispute centred on numerous alleged defects in the building works, including issues with stormwater drainage, structural integrity, and general workmanship.

Ms Sumner had also pursued claims against the relevant building surveyor, Yarra Building Surveyor Group Pty Ltd, and surveyor Robert Hartley, but those parties were removed from the proceeding following a settlement agreement in 2023.

Settlement with the Building Surveyor

In July 2023, Ms Sumner settled her claim against the building surveyor for $64,000. The claims against the surveyor related to alleged negligence in issuing the building permit, granting the occupancy permit, and failing to require rectification of defective works. Despite this settlement, Ms Sumner continued her case against the Nobes.

Builder’s Defence

The Nobes argued that any damages owed to Ms Sumner should be reduced by the $64,000 settlement she had already received from the surveyor, citing the legal principle that a plaintiff should not receive “double recovery” for the same loss. They contended that the homeowner’s claims against both the builder and surveyor overlapped because they both related to the cost of rectifying the same building defects.

Tribunal’s Findings

The Tribunal accepted that Ms Sumner’s claims against the builder and the surveyor were concurrent, meaning they related to the same underlying loss. However, it ruled that the Nobes had not provided sufficient evidence to prove that the $64,000 settlement should be credited against the damages awarded.

The settlement had been expressed as an “all in” amount inclusive of damages, costs, and interest, with no breakdown provided. The Tribunal found it impossible to determine how much, if any, of that settlement related directly to the same damages sought from the Nobes.

Damages Awarded

On 26 August 2025, VCAT ordered that Paul and Amanda Nobes must pay $207,258.27 in damages to Ms Sumner for the defective building works.

The Tribunal dismissed the Nobes’ application to have the settlement amount deducted, meaning the surveyor’s settlement did not reduce the builder’s liability. Costs and interest remain reserved, with both parties given 42 days to make submissions on those matters.