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Liquidators have been appointed to Huxley Homes. Issues arise as to what rights Owners now have and what remedies are available to have your homes completed or defective work rectified.
Each case will be slightly different, however fundamentally you may be a creditor of the company in liquidation and would have a right as a creditor. This is dealt with through the Liquidator. Experience shows that it is very unlikely that any money will be seen by the Owners who are creditors of the company.
Do you have a Home Owners Warranty Insurance or similar which is required to be provided by the Builder in relation to any home building works carried out? As we understand there is a possibility that Home Owners Warranty has not been obtained by Huxley Homes in relation to some of the projects, however most of the affected Owners have Home Owners Warranty Insurance to cover their building works.
Home Owners Warranty Insurance is last resort insurance and is only triggered by certain events. One of the events is the insolvency of Builders and the appointment of a Liquidator. In those circumstances if you have the benefit of Home Owner’s Warranty Insurance, a claim can be made against the Home Owner’s Warranty Insurer.
We have reviewed a few of the Contracts with Huxley Homes and there is a question as to who is the contracting party. To make a claim the Owner would have a Contract with the company to which the Liquidator is appointed. We would expect that this would be no issue.
From the enquiries made of us it appears that the contact for the home warranty claims are through Builders Warranty Claims, QBE Australia with whom we have dealt with on many occasions where there has been a collapse of a Builder.
If you have a Home Owner’s Warranty, a Claim Form should be lodged with Builders’ Warranty Claims, QBE Australia. It is critical that the Forms are completed in an appropriate manner. The Claim Form has a comprehensive checklist. In our experience it is useful if the Owners prepare a draft response and we can review the draft response.
Depending on the stage of the works that exists at your property, there will be a requirement for the appropriate Building Consultant to prepare a report in relation to the matter. Each case is different. It is critical that the report is comprehensive and covers all items.
We are able to advise Owners of a number appropriate Building Consultants who would be able to prepare the necessary Building Report. It is critical to remember that your claim is in effect only as good as the submission as to the defects and incomplete works for which a claim can be made.
There are time limits that apply and claims should be made as soon as possible. This will not only assist you but will ensure that you are on the appropriate list in the appropriate order to have the matter dealt with as soon as possible.
In circumstances such as Huxley Homes, there will be a range of options to complete your house which may be available and it may be that negotiations could be had for an appropriate Builder appointed by the Home Owners Warranty Insurer to complete the project. This will be dependent upon many issues.
Recently we have been involved successfully for numerous clients making recovery under of Home Owners Warranty Insurance for Owners adversely affect by the collapse of Bermuda Constructions Pty Limited earlier this year.
If you have unfortunately been caught up in the collapse of Huxley Homes, please telephone Richard Watson an experienced Building and Construction Lawyer or his Personal Assistant Shereen Da Gloria on 9221 6011.
Richard Watson is an Accredited Specialist, Commercial Litigation in the stream of Building and Construction, Watson & Watson, Solicitors.
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