Builders of new Royal Adelaide Hospital face legal bill after losing bitter Supreme Court dispute
THE builders behind the trouble-plagued new Royal Adelaide Hospital face paying millions of dollars extra to fix defects after losing one of its bitter legal disputes with the State Government.
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THE builders behind the troubled new Royal Adelaide Hospital face paying millions of dollars extra to fix defects after losing one of its bitter legal disputes with the State Government.
The Government successfully sued the $2.3 billion project’s consortium, SA Health Partnerships, and an independent expert, Steven Goldstein, over four defects and subsequent delays.
The Supreme Court row had centred on whether SAHP or the Government was responsible for deciding when the state’s biggest, and most expensive, major project, was ready to be handed over.
While senior Government sources tonight insisted the judgment would not affect the “technical completion”, the builder now faces having to fix the defects.
The defects, including a loading dock 70cm too short, dozens of rooms built the wrong size and incorrect “data” pipes installed, were estimated to cost $10 million to fix.
In its legal victory on Thursday in a case that has triggered a war of words between the parties, SA Health officials successfully sought an injunction against Mr Goldstein, a Sydney building lawyer.
In his 75-page judgment, Justice Malcolm Blue — who banned public viewing of the site during trial — found Mr Goldstein had “no jurisdiction” to adjudicate on the row and ruled his decisions “null and void”.
The builders also face a hefty legal bill after Dick Whitington QC, for the Government, on Thursday sought costs.
He told the court his clients had won every the legal argument bar one point. A hearing will occur next month.
The victory places the Government in a strong position to win its other legal dispute with the consortium, who had sought an urgent injunction to avoid having its contract “terminated”. Justice Blue on Thursday ordered the parties face a trial in February.
Health Minister Jack Snelling tonight welcomed the defect judgment as a “very encouraging step forward”, adding: “(The) ruling confirms what we’ve always said and that is that the contract protects South Australian tax payers”.
An SAHP spokeswoman declined comment.