Mackay property developer John Cowley sues Mackay Regional Council for $42m compensation in mega lawsuit
Mackay Regional Council is accused of backflipping on a promise to support a housing development in the city’s south.
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A business mogul has launched a mammoth $42m lawsuit against Mackay Regional Council over a proposed residential development in the city's south.
Mackay property developer John Cowley, who with his wife Rhonda owns multiple development companies and trusts, has alleged council backflipped on a promise to support his push for a housing subdivision.
It is further alleged council benefited from more than $16m in infrastructure to the area that was paid for by the Cowleys, which they claim had only been designed and built as part of a joint "agreement" in relation to the housing project.
However council labelled the multimillion dollar lawsuit as "defective" and argued the claim was "liable to be struck out in its entirety".
Court documents viewed by the Daily Mercury state Mr Cowley had been in talks with the council about developing the area, near the Bruce Highway, Stockroute Road, Temples Lane and Cowleys Road, since 2005 and was under the impression it "supported the development of the project".
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As a result, Mr Cowley claimed he made a number of business decisions and incurred significant costs at the council's request, and based on "representations" it supported the development, that he otherwise would not have spent.
In January 2015, the council rejected the development application lodged in May 2014 for 154 residential lots, a park and mixed-use space.
The claim alleges there were further negotiations between the Cowleys and the council up to 2018 when they were hit with infrastructure charges that "took no account" of an agreement that placed the cost at $30,000.
It is alleged the Cowleys have already spent $16,974,231 on infrastructure for the project and it is estimated they will spend more than $13m more on trunk infrastructure.
Ooralea Developments, Farscastle, Cougar Developments, Bruce Highway Farming, Stockroute Road Farming, Temples Lane Farming, Cowleys Road Farming, Ajana Developments, Hewbridge Pty Ltd and Bakers Creek Developments - all of which are owned by Mr and Mrs Cowley - are suing Mackay Regional Council for $42,660,203 in compensation.
Alternatively they are seeking damages totalling $16,974,231 and further expectant damages of $13,177,000.
The claim alleges the council was aware Mr Cowley was spending money on designing and constructing infrastructure "they would not otherwise spend".
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It is further alleged council was "unjustly enriched" in receiving the benefit of infrastructure built at others' expense and accused it of "misleading or deceptive conduct" under Australian Consumer Law.
"(Council) stood by and allowed (the Cowleys) to act upon a mistaken belief - or a misrepresentation by (council) of its true intentions - that the project would proceed in the manner agreed or represented," the claim alleges.
"The (Cowleys) relied upon the promises and representations made by (council) in relation to infrastructure charges, and had acted to its detriment on the basis of those promises and representations by expending the funds in relation to trunk and other infrastructure."
The council, in its defence to the claim also filed in the supreme court and viewed by the Daily Mercury, alleged the lawsuit was "defective and cannot sustain the relief".
The council has argued the "purported causes of action are not properly pleaded, are embarrassing and amount to mere assertions without pleading the necessary facts, matters and circumstances".
It hit out over allegations the council committed a "breach of a statutory obligation to act in good faith", arguing the claim "does not specifically identify the alleged promises and the representations".
"The pleadings in the (claim) as to beliefs and reliance are so vague and imprecise as to be meaningless," the council has argued.
The council also denies any "alleged misleading or deceptive conduct and unconscionable conduct", arguing there were not allegations that Australian Consumer Law applied.
The council's defence also claimed there were no allegations that any "so-called agreement" regarding infrastructure was "a binding contract".
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