Renshaw Homes Ordered to Pay Damages and Legal Costs After Dispute

Rachael Montero and Adriano Mandorla were awarded $151,378.07 by the Victorian Civil and Administrative Tribunal (VCAT) after a dispute with builder Renshaw Homes Pty Ltd. The decision, made in March 2025, followed a five-day hearing concerning numerous building defects in a home the applicants had purchased from a developer. Renshaw Homes was the builder contracted by the developer. There was no counterclaim lodged by the builder during the proceedings.

While the damages award was made earlier, the Tribunal reconvened in June 2025 to determine who should pay legal costs. The applicants sought to recover $166,759.63 in total expenses, comprising solicitor and counsel fees ($128,807.54), expert witness fees ($30,009.07), and Tribunal fees ($7,943.02).

Tribunal Rules in Favour of Homeowners

Despite being self-represented during the costs application, Montero and Mandorla successfully argued for Renshaw Homes to cover their legal expenses. VCAT found it fair under section 109(3) of the Victorian Civil and Administrative Tribunal Act 1998 to award costs, noting the applicants’ consistently stronger legal position and the complex nature of the case. The Tribunal also considered the extensive effort the applicants made to resolve the dispute without proceeding to hearing.

Renshaw Homes was ordered to pay the applicants’ costs on a standard basis under the County Court Scale, as well as reimburse the filing fee for the costs application.

Rejected Settlement Offers and Missed Opportunities

Over the course of the dispute, seven settlement offers were exchanged. The earliest offer, made by the applicants in November 2019, proposed to settle for $125,000 inclusive of costs, well below their full claim. VCAT found this to be a valid Calderbank offer, meaning it could be considered in the costs decision.

Subsequent offers included:

• 13 August 2021: Applicants offered to accept $85,000 inclusive of costs

• 14 September 2021: Applicants offered $70,000 inclusive of costs

• 4 October 2023: Applicants proposed settlement for $194,600, breaking this down as $126,000 for damages and $68,600 for costs

Renshaw Homes responded with offers such as:

• $40,000 plus partial rectification work (August 2021)

• $70,000 inclusive of costs (September 2023)

However, none of the builder’s offers exceeded the final Tribunal award or were determined to be more favourable than what the homeowners ultimately received.

Legal Complications Around “Inclusive of Costs” Offers

Although Montero and Mandorla made multiple good-faith offers to settle, their offers were mostly expressed as inclusive of costs. This language, under section 112(3) of the VCAT Act, made it difficult for the Tribunal to determine if those offers “beat” the final ruling. For this reason, while the Tribunal accepted that some of the applicants’ offers represented considerable compromises, it did not award indemnity costs.

The Tribunal reaffirmed that in VCAT, unlike courts, costs do not automatically follow the event and must be justified under the specific criteria outlined in the legislation.

Homeowners’ Persistence Acknowledged

The Tribunal noted that Montero and Mandorla had attempted to resolve the matter before litigation even commenced. Their willingness to compromise — making offers consistently below their full claim — and their continued pursuit of resolution despite being self-represented during the latter stages, were both considered in awarding costs on a standard basis.

As of June 2025, their claim for damages related to alternative accommodation during rectification works remains pending.