Swell Body Corp at Burleigh Heads seeks $20m from builder and developer over alleged defective work on Gold Coast resort

A GOLD Coast body corporate says it will pursue the builder and developer of its apartments for up to $20 million in damages..

JM Kelly managing director and founding director Geoff Murphy.

A GOLD Coast body corporate says it will pursue the builder and developer of its apartments for up to $20 million in damages, as the building contractor this month announced he would liquidate three of his companies.

The body corporate representing Swell Resort at Burleigh says it will sue JM Kelly (Project Builders) as well as Toga, the project developer, for at least $10.8 million, and possibly as much as $20 million, for allegedly defective work completed during the construction in 2006.

Swell Resort at Burleigh.

Managing director of JM Kelly, Geoff Murphy, the man behind a bid to lure the Gold Coast Titans to central Queensland, has fought a protracted legal battle with Toga since 2006 for the $30 million he says JM Kelly is owed for completing the project. He has so far been unsuccessful.

Principal and apartments body corporate chairman Terry Imrie said Swell, represented by Piper Alderman solicitors, would argue JM Kelly was responsible for defective building work during construction of the project and was therefore liable for damages.

“It’s quite obvious that Kelly right from the word go tried to do the whole job on the cheap,” he claimed.

“Toga, the developer, in turn refused to give Kelly the settlements amount because Kelly defied the directions of the superintendent — the architect, in other words.

“We are able to now put together and take action against Kelly and against part of the settlement amount that Toga had retained.”

Five years ago a Federal Court judge ruled JM Kelly and two other companies colluded to fix bid prices and took part in misleading or deceptive conduct for engaging in a practice known as “cover pricing” between 2004 and 2007. Piper Alderman told the Bulletin in a statement it had “succeeded in an interlocutory application” against JM Kelly and Toga but was investigating all its options to cover all the debts that it was owed.

“This (last) week, it was reported that JMK was placed into liquidation,” it said.

“This is concerning for our clients and has come without warning.”

Last week, Mr Murphy said he would rather put the liquidation of his companies behind him.

Originally published as Swell Body Corp at Burleigh Heads seeks $20m from builder and developer over alleged defective work on Gold Coast resort