Property developer Stockland has dragged embattled construction giant Probuild to court over the storm water drain failure it claims was behind a sinkhole that forced the closure of parts of Baldivis Shopping Centre.
Stockland’s eponymous shopping centre in Perth’s southern suburbs made headlines in February 2019, when a 20-metre wide and two-metre deep sinkhole appeared in the carpark just metres from its entrance.
The incident occurred less than four years after the developer had finished a major $116 million redevelopment of the site, prompting an investigation and significant repair works.
The centre overhaul had been spearheaded by Probuild, which inked a deal with Stockland that rendered it responsible for the design and construction.
But according to a writ lodged in the Supreme Court of Western Australia, Stockland claims the contract also stipulated that the developer would be covered financially in the event defects were uncovered.
Those same obligations were imposed on plumbing company Cooke & Dowsett, which entered into a subcontract with the builder and assured Stockland it was suitably qualified to carry out the works via a subcontractor warranty deed.
The installation of the system — which comprised two chambers surrounded by aggregate and later covered by bitumen — was completed in late 2014, six months before the centre reopened.
A witness said she believed the sinkhole was getting bigger.Credit: Heather McNeill
But a sinkhole occurred at the carpark just metres away on February 2, 2019, something Stockland’s lawyers claim was a direct result of the system’s failure.
In the writ, Stockland claims an inspection of the system showed extensive damage, including cracking and ruptures of the chamber walls and other sections of the structure.
The sinkhole made headlines and forced the closure of parts of the shopping centre for an extended period.
Stockland’s lawyers claim the developer suffered loss and damage as a result of the incident, including the costs of reinstating the system and compensating tenants left out of a pocket.
The developer claims both Probuild and Cooke and Dowsett are liable to indemnify it because the pair breached the duties owed to Stockland and engaged in misleading and deceptive conduct.
Stockland wants a court order that Probuild and Cook and Dowsett breached their undertakings and are liable to reimburse the development firm, pay damages and cover its legal costs.
Though the quantum of the claim is not yet known, the lawsuit’s lodgment in the Supreme Court indicates the damages sought would exceed $750,000.
It is also not yet clear what the lawsuit means for Probuild, which has been in the hands of administrators at Deloitte since early 2022.
A spokesperson for Stockland told this masthead the company was unable to comment on the matter given it was currently before the courts.
Cooke and Dowsett and Probuild’s administrators at Deloitte have been contacted for comment.
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