$17 million Air Apartments cladding replacement will go ahead despite Lissi Whyte and Lance Vater lawsuit, court told
A $17 million project to replace potentially flammable cladding will go ahead despite a multimillionaire couple’s lawsuit, a court has been told.
Police & Courts
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Works to replace potentially flammable cladding in one of Adelaide’s most luxurious apartment buildings will continue despite a multimillionaire couple’s opposing lawsuit, a court has heard.
On Tuesday, the District Court was told “the contracts are signed, the scaffolding is up and the work will go ahead” at Air Apartments, on Greenhill Rd, regardless of a civil dispute.
Counsel for business duo Lissi Whyte and Lance Vater said there had been “significant developments” since the case, revealed by The Advertiser, was last in court.
They said the provision of key documents “could lead” to negotiations that might “result in resolution” without a trial, but could express no confidence “any higher than that”.
Counsel for the building’s community corporation, made up of the couple’s fellow owners, said it was unfortunate to hear the possibility of resolution “put in such diminishing terms”.
Ms Whyte and Mr Vance, who own a $3.9 million apartment in the complex, have taken action against the corporation over the replacement of aluminium cladding.
They want the corporation’s $17 million contract with construction company Duratec declared invalid as unnecessary and improperly authorised expenditure.
They also asked for disclosure of all documents, including contracts, receipts and quotes, regarding the project.
The corporation denied their claim, saying the contract had not been mishandled and that owners had been informed about the works at various times.
Subsequently, other owners spoke publicly – and staged a protest outside the building – in support of Ms Whyte and Mr Vance.
They claimed owners were issued levies from $90,000 to more than $450,000, depending on apartment sizes, with payment due within 12 months.
Tuesday’s hearing was standing room only, as owners – many wearing green ribbons on their lapels – filled the public gallery and crowded in the court’s entryway.
Counsel for Ms Whyte and Mr Vance said “at least four other owners” were considering filing actions of their own in order to be joined to their clients’ claim.
They said the corporation had provided “a considerable amount of further documentation”, including a copy of the contract, but their clients still wanted more paperwork.
“There is potential that the provision of additional documentation could lead to negotiations relating to the resolution of the proceedings,” they said.
“I can’t put it any higher than that.”
Counsel for the corporation said that, despite the “diminishing terms” used to discuss potential resolution, they were keen to proceed the matter.
“Everyone living in the building knows the contracts are signed, the scaffolding is up and the work will go ahead,” they said.
“We are getting on with the work, Duratech has been paid, everything is moving along.
“We seek liberty to apply to bring this on at short notice … there might be a pressing need to get the matter back in court, but I can’t actually say more about that at this time.”
Judge Michael Burnett agreed, and granted a short adjournment.
“This probably needs to be resolved, or heard, relatively soon,” he said.
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