Micheal Arrow - Court outcome

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10 April 2019
Court actions

An unregistered builder who contravened Victorian consumer and domestic building contract laws has been ordered to pay penalties totalling $46,200, plus costs of $5,000.

We took civil action against Micheal Arrow (also known as Michael Arrow), 49, of Doreen, after investigating complaints from consumers.

A hearing at the Melbourne Magistrates’ Court found that Mr Arrow contravened the Domestic Building Contract Acts 1995 (DBCA) by:

  • demanding and taking excessive deposits for work 
  • entering into major domestic building contracts while unregistered, and
  • not disclosing required information to clients.

Mr Arrow was found to have contravened the Australian Consumer Law (Victoria) (ACL (Vic)) by:

  • engaging in false and misleading conduct by telling a customer he was registered when he was not
  • accepting payments for work but not supplying all the work within a specified or reasonable time.

In one instance, Mr Arrow quoted $109,000 for building works, and took a deposit of $27,250, well above the five per cent deposit allowed under the DBCA for works costing more than $20,000. 

In another case, Mr Arrow took a deposit of just over $13,000 for a job quoted at $43,375.

As well as paying the penalties for the ACL (Vic) contraventions and costs, Mr Arrow has been ordered to not:

  • describe himself as a registered builder until he is registered
  • enter into any major domestic building contracts (that is, where the works cost more than $10,000) unless registered as a builder
  • demand or accept deposits of more than 10 per cent, if he performs work with a contract price of $10,000 or less. 

Mr Arrow must also:

  • keep copies of documents including receipts, customer orders and contracts
  • attach a notice as the front page on his domestic building contracts advising that he is not a registered builder, and therefore cannot do works costing more than $10,000 until such time as he is registered nor take deposits more than the amount permitted under the DBCA.