Queensland developer Citie Centre has launched proceedings in the Supreme Court against the former owners of its Arundel development site in south-east Queensland.

The action heads off a likely law suit against Citie Centre 1, a Citie Centre subsidiary, which is disputing claims by former land owners Mrs Jessie O'Brian and Mrs Alice Proud, that it owes them $1.54 million for extra land costs over and above the original land purchase.