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BUILDING ACT 1993 - SECT 137F

Subrogation

S. 137F(1) substituted by No. 31/2020 s. 54(1).

    (1)     This section applies if, after the commencement of section 54 of the Cladding Safety Victoria Act 2020 , Cladding Safety Victoria pays an amount to an owner of a building (the payee ) by way of a grant of financial assistance in relation to cladding rectification work on the building.

S. 137F(2) amended by No. 31/2020 s. 54(2).

    (2)     When the financial assistance is paid to the payee, the Crown is subrogated to all the rights and remedies of the payee against any person in relation to the installation or use of any non‑compliant or non-conforming external wall cladding product, or other building work, that required the cladding rectification work to be undertaken.

    (3)     If a right or remedy to which the Crown is subrogated under this section is exercisable against an entity that is not an individual, it is enforceable jointly and severally against the entity and the people who were its officers at the time the act or omission that gave rise to the right or remedy occurred.

    (4)     If it is proved that an act or omission by an entity occurred without the knowledge or consent of an officer of the entity, a right or remedy is not enforceable as provided by subsection (3) against the officer in relation to the act or omission.

    (5)     The Crown may exercise its rights and remedies under this section in its own name or in the name of the payee.

    (6)     If the Crown brings proceedings under this section in the name of the payee, the Crown must indemnify the payee against any costs awarded against the payee in the proceedings.

    (7)     If, in exercising its rights and remedies under this section, the Crown recovers more money than the amount of financial assistance paid to the payee, the Crown must pay the difference to the payee after deducting costs incurred to recover the money.

    (8)     The payment of an amount referred to in subsection (1) in relation to cladding rectification work does not affect any right or remedy of the Crown by virtue of subsection (2) to recover from a person in relation to the installation or use of any non‑compliant or non-conforming external wall cladding product, or other building work, that required the cladding rectification work to be undertaken.

    (9)     A reference in this section to the rights of a payee includes any right the payee may have under section 86 of the Sentencing Act 1991 .

S. 137F(9A) inserted by No. 31/2020 s. 54(3).

    (9A)     Despite the amendment of this section by section 54 of the Cladding Safety Victoria Act 2020 , any right of subrogation conferred on the Crown under this section as in force immediately before its amendment continues to have effect.

    (10)     In this section—

S. 137F(10) def. of officer amended by No. 31/2020 s. 54(4)(a).

"officer"—

        (a)     in relation to an entity that is a corporation—means an officer of the corporation within the meaning of section 9 of the Corporations Act; or

        (b)     in relation to an entity that is neither an individual nor a corporation—means an officer of the entity within the meaning of section 9 of the Corporations Act.

S. 137F(10) def. of relevant time repealed by No. 31/2020 s. 54(4)(b).

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S. 137G inserted by No. 43/2019 s. 9.



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