Developer buys house in alleged ‘sinking suburb’ of Spring Farm in legal battle with Camden Council

The property developer facing a class action on behalf of homeowners in an allegedly ‘sinking’ Sydney housing estate has made a strange move in its bid to shift blame onto the local council.

Property developers defending a class action over an allegedly sinking Sydney suburb have bought a house in the area to help prove their claim that the council is to blame.

The Daily Telegraph can also reveal only a few per cent of the thousands of Spring Farm homeowners in southwestern Sydney who are eligible to participate in the class action have opted out.

This is despite widespread concern over the impact of the proceedings on the local community.

The class action is against developer Cornish Group Spring Farm Pty Ltd, Camden Council and a small geotechnical engineering business that’s since gone bust.

Cornish Group Spring Farm is taking separate legal action against the council over what it says are a “handful” of problem properties.

33 Wagner Road, Spring Farm has been bought by the area’s developer. Picture: John Rolfe

The lead plaintiff in the class action is Daniel Moussa, who lives on Wagner Road Spring Farm.

The Telegraph has learned a company called Wagner Road Pty Ltd has taken the legal step of buying a house a few doors away from Mr Moussa’s in December for $750,000.

Wagner Road Pty Ltd’s directors are siblings Brett and Tania Cornish, who are also directors of Cornish Group Spring Farm Pty Ltd.

Cornish Group Spring Farm director Brett Cornish. Picture: Facebook

The roof of the property bought by Wagner Road appears to be sagging. There are piles of new bricks sitting on pallets in the front yard. No occupancy certificate has ever been issued.

A Cornish Group spokeswoman said the property on Wagner Road “was acquired as part of activities Cornish Group Spring Farm Pty Ltd are conducting in its claim against Camden Council to establish Council filled and compacted land where localised subsidence issues may have occurred.”

In the class action, a statement of claim filed with the court alleges some owners have suffered loss due to property damage caused by “unsound condition of soil” – specifically “significant depths of inadequately compacted or uncompacted fill, or fill otherwise unsuitable due its type, density and/or moisture content.”

Lots at Spring Farm were first sold in about 2014. The area was formerly a chicken farm and industrial zone.

When The Telegraph visited Mr Moussa’s home last year, a wall moved when pushed.

Danny Moussa, in 2021, showing the damage to his home in Spring Farm. Picture: Damian Shaw

In comments made separate to the legal process, the owner of another house said their tenant had fled into the street, fearing a bomb had exploded inside, when windows began smashing for no apparent reason.

The statement of claim also alleges Spring Farm owners have “have suffered economic loss as a result of a reasonable apprehension that some land within the Spring Farm Area is unsound for building.”

The class action is highly contentious within Spring Farm, with some members of the broader community expressing the view that the proceedings themselves are driving down property values.

Still, just six per cent chose to opt out when given the choice by lawyers behind the class action.

A window in a Spring Farm property ‘exploded’ under structural pressure. Picture: Supplied

The proceedings are being funded by ASX-listed litigation financier Omni Bridgeway. A spokesman for Omni said: “The fact that residents of more than 3500 homes are participating in this legal action highlights the widespread concern in Spring Farm.

“All class actions have an opt-out option yet over 94 per cent of residents have decided to proceed.

“Therefore those seeking to paint this as an issue impacting a handful of properties are clearly not listening to the community,” the spokesman said.

Cornish Group Spring Farm has previously said it “has been contacted by only a handful of people” reporting problems at their properties, “all of which are on land that was previously owned and filled by Camden Council”.

The Council said “there are ongoing legal proceedings in relation to the Spring Farm development. As such, Council is unable to provide any comments or further information on the matter.”