Unley Council ratepayers face $1.4m legal bill to fight court case with prominent property mogul

A $150m development in Adelaide’s east is being “frustrated” by a rival shopping centre owner who has taken a legal claim to the High Court.

A $150 million Unley development is mired in a legal battle involving a neighbouring shopping centre owner who has taken the fight to the High Court.

Unley Council ratepayers are facing a potential $1.4m legal bill to defend legal claims by the Duke Group which is accused of frustrating the sale of public land to enable the construction of 130 apartments, shops, six cinemas and cafes at 166-168 Unley Rd.

The so-called Unley Central project would replace the existing Target and council-owned car park opposite the Duke Group’s Unley Shopping Centre.

At the centre of the legal stoush is the council’s Memorial car park and its “interface” with an adjacent carpark owned by the Duke Group.

The Supreme Court and the Full Court of the Supreme Court in 2020 and 2021 rejected Duke Group’s claims that a trust prevented the council from disposing the land, according to advice from the council’s lawyers.

The council revealed on Monday the Duke Group has applied for special leave to appeal to the High Court. A hearing is expected in April.

Artist's impression of $150m Unley Central development proposed for Unley Road.

Artist's impression of $150m Unley Central development proposed for Unley Road.

A 10-day Supreme Court trial on another claim by Duke Group over right of way access from its car park has been set down for October.

Unley councillors on Monday approved the council spend up to an extra $500,000 on legal fees, taking total potential spend to $1.4 million.

Unley Mayor Michael Hewitson said the Unley Central project “should have started by now”.

“This litigation is frustrating,” he said. “It serves to stall the desire of the Unley community for a reinvigorated Unley city centre and greater choice of living, shops and services.

“(The council) will continue to commit all resources necessary to counter legal action and delays.”

He said the council was confident that “most” of the council’s legal costs would be recouped.

Catcorp managing director Anthony Catinari, Unley Council Mayor Michael Hewitson and businessman Patrick Ho with the proposed Unley Central development site in the background.

Developer Catcorp will oversee the Unley Central project on behalf of local businessman Patrick Ho, who owns the Target site and will retain ownership of the retail, office and entertainment complex.

Mr Hewitson said the developers would lodge concept plans with the state planning commission this month irrespective of the legal action.

He said Duke Group was briefed in 2018 on council’s intentions for the land but claimed the company did not raise any objections at the time.

“It was not until nine months after consultation closed that it objected and initiated the first of a series of legal claims and actions,” he said.

The Duke Group’s lawyer Greg Griffin said his client would be happy if it didn’t have to spend money in litigation.

“But it has been forced on a number of occasions to take proceedings to protect its position,” he said, questioning why Catcorp was not “picking up the legal tab”.