Spring Farm residents launch class action over ‘sinking’ homes

A class action has been filed on behalf of thousands of homeowners in a sinking southwestern Sydney suburb, with tens of millions of dollars in damages being sought. See the pictures.

Thousands of devastated homeowners in a new south-western Sydney suburb have taken legal action as their houses crack up due to sinking land.

The Daily Telegraph can reveal a Supreme Court class action has been filed on behalf of 3500 owners at Spring Farm, near Camden, seeking tens of millions of dollars in damages from the developers, the local council and others.

Five-year-old homes built on a former chicken farm and industrial area are falling apart, with one family given a week to get out amid fears the walls were about to give way.

The problems are due to land movement believed to have been caused by the way the site was filled and compacted before building began.

Danny and Marielle Moussa outside their home in Spring Farm. Picture: Damian Shaw

Some of the damage to the Moussa home. They are suing Camden council in a class action. Picture: Damian Shaw

Even those whose homes are yet to show signs of damage are losing out as word gets around about the sinking suburb.

“The area has a stigma, it’s called ‘Sink Farm’,” said lead plaintiff Danny Moussa, who estimated at least $40,000 worth of repairs had been done to his home, which was finished in 2016. He had paid $560,000 for a house and land package.

Mr Moussa said he found it difficult to sleep at night because of the sounds of tiles and gyprock cracking.

During a visit by The Telegraph this week, a wall moved when Mr Moussa pushed it.

“There’s this stress of not knowing if the house is going to come down on you one day,” he said.

His wife Marielle said: “We’ve been told the site wasn’t fit to be built on.”

More of the damage to Danny and Marielle Moussa's home. Picture: Damian Shaw

In a financial double-whammy, no bank will value the property so the couple are unable to refinance their fixed-rate loan on which they are paying 4 per cent interest.

Anne and Rod Chapman, who also own a property at Spring Farm, said they had hoped their $700,000 investment would make a profit that their children could use towards future home deposits.

“But we can’t sell it,” Mrs Chapman said.

Their house is riddled with cracks and many doors no longer close. Last year, the Chapmans had to drop the weekly rent from $590 to $535 to secure a tenant. Now, that tenant has given notice of intention to vacate in July.

The Chapmans intend to join the class action.

Residents began exploring their legal options after one owner successfully brought proceedings against builder Firstyle, which bought back the home from the owners.

Anne Chapman pictured outside her investment property in Spring Farm. Picture: Damian Shaw

Firstyle asked Camden Council for the official reports on how the area had been filled and compacted.

“They said that the files were lost,” Firstyle Homes general manager Pat Romano told The Daily Telegraph.

Firstyle, which carried out $80,000 of repairs to the property, is not a respondent to the owners’ class action.

A Camden Council spokeswoman said it “had no formal Government Information Public Access Act request directly from Firstyle Homes in relation to Spring Farm.”

The spokeswoman added that it had “not received any formal notice” of the class action “and, as a result, is unable to provide any comments or further information.”

A directions hearing was held last week and another is set for this Friday.

Damage to the Spring Farm property owned by Anne and Rod Chapman. Picture: Supplied

Spring Farm was developed by the Cornish Group and managing director Brett Cornish said it had only been notified of a handful of problem homes. The area affected by subsidence appeared to be small, he said.

The company had “not yet seen any class action and is unable to comment,” Mr Cornish said.

His company is suing the council in a separate action.

Mr Cornish said the council “were the prior owners of the land and we allege they undertook substantial filling works in the relevant area”.

The council’s spokeswoman said “as there are ongoing civil proceedings between Council and Cornish Group relating to the Spring Farm development, Council is also unable to provide comment on this matter”.

Another respondent to the owners’ class action is the company that did soil analysis on the site, SMEC Testing Services.

It collapsed in 2019 after William Inglis & Son Ltd made a $33 million claim over soil contamination at the thoroughbred auctioneers’ Warwick Farm site that was supposed to have been fixed by SMEC. The Cornish Group is also suing SMEC.

Not all 3500 homes at Spring Farm have developed cracks or other problems. But the class action claims that every property has been tainted, undermining their value.

Because it is an “open” action, all owners are automatically included.

The Spring Farm class action follows a similar situation last year, when developer Lendlease offered to buy back more than 800 homes at Jordan Springs, north of Penrith, due to sinking.

Originally published as Spring Farm residents launch class action over ‘sinking’ homes