Gold Coast developer loses Gympie Pines Fairway Villas appeal

A Gold Coast developer could be fined more than $200,000 as a maximum penalty after losing a three-year court battle which tested Queensland’s apartment buyer protection laws.

A Gold Coast developer could be fined more than $200,000 after losing a three-year court battle which tested Queensland’s apartment buyer protection laws.

A Gympie body corporate has put apartment buyers’ protection laws to the test, winning a three-year court battle against a Gold Coast developer.

The case started when the Gympie Pines Fairway Villas body corporate read a Gympie Times article in December 2020, about Gympie Regional Council’s approval of a new development plan, something they should have been informed about 30 days before the initial lodgement.

The new plan changed the final two stages of the original development plan for the Villas, a housing estate on Corella Rd opposite the Gympie Cemetery, into plans for 21 one-storey residential units suitable for NDIS participants.

A Gold Coast developer could be fined more than $200,000 after losing a three-year court battle which tested Queensland’s apartment buyers’ protection laws. Picture: Christine Schindler

In September 2019, Corella Rd Pty Ltd bought the land on lot 101.

Representing the company at the appeal, but not personally a defendant in the proceedings, director Philip Goodman acknowledged the changes were “significant differences”, court documents said.

Mr Goodman has been no stranger to developments and was the CEO of Pradella Property Ventures where he spent more than a decade building over-50s lifestyle resorts at Seachange on the Gold Coast.

At the time of taking over the land the plans were still intact for the final two stages of development, court documents said.

In contrast to the planned two stage development, all 21 new units at the Villas were approved as one lot within the community titles scheme.

Magistrate Chris Callaghan found Corella Rd Pty Ltd guilty of not informing the Villas’ body corporate of these changes on May 19, 2022, contrary to section 29 of the Body Corporate and Community Management Act 1997.

Mr Goodman is no stranger to developments and was the CEO of Pradella Property Ventures where he spent more than a decade building over-50s lifestyle resorts at Seachange on the Gold Coast. Picture: Shane Zahner

Corella Rd Pty Ltd appealed the verdict in Gympie District Court in August 2023, but the matter was dismissed and sent back to Gympie Magistrates Court for sentencing.

Solicitor Michael Young represented the Villas body corporate on Monday, requesting October 20, 2023 as a sentence date.

The defendant failed to appear, and Mr Young reported to Magistrate Bevan Hughes he had been advised their opinion of the matter was that “the orders were excessive”.

“It doesn’t help that they aren’t here to tell me that,” Mr Hughes said.

The matter will be mentioned again on October 16 for confirmation of Mr Callaghan’s availability on the proposed sentencing date.

Breaches of Section 29 of the Act by developers can attract fines of up to $206,775 as a maximum penalty.