Was Frameless blameless?
1. Zagoudis asked Totally Frameless to quote for the installation of shower screens in two units in a building in Chadstone. He accepted the written quote provided by the company and paid a deposit. Zagoudis then asked Totally Frameless to prepare three invoices in the names of two other people and a company, to cover the remainder of the job. When the company invoice was not paid on completion of the work, Totally Frameless re-issued the invoice in Zagoudis’ name, and then brought a claim against him at VCAT seeking payment of the outstanding amount.
2. Zagoudis defended the claim on the basis that he was not a party to the contract; he said he was only the project manager for the work, commissioning it in the name of the company that had failed to pay, and was therefore not liable for the costs. Zagoudis also claimed that the amount of the invoice was incorrect, as it was higher than the initial estimate.
3. VCAT ordered that Zagoudis pay Totally Frameless the outstanding amount of the invoices for the installation of the shower frames. VCAT found that the contract for installation of the shower screens was between Totally Frameless and Zagoudis; that Totally Frameless had no dealings with the people listed on the invoice; and that Zagoudis did not inform Totally Frameless that it was entering a contract with other people. VCAT also dismissed Zagoudis’ claim that the invoice amount was incorrect, finding that he had accepted the itemised quote provided by the company.
4. The advantages in using VCAT to determine a dispute (as demonstrated by Totally Frameless Pty Ltd v Zagoudis) include:
- A business can use VCAT to secure payment of a debt as well as a consumer.
- Legal representation is not permitted for claims of less than $10,000, so the cost of bringing a claim is limited to the filing fee.
- Because the hearing was conducted in one day and the claim was under the $100,000 threshold, there was no hearing fee charged.
- The VCAT member who determined the claim was able to review the facts as presented by the parties, and provide legal expertise in the application of relevant contract law.
- VCAT was able to make an order to pay the outstanding amount within six months of the dispute first arising, demonstrating its ability to deliver timely justice.