Subbies seek legal compensation over Cullen Group collapse

DOZENS of tradies stung by the collapse of the Cullen Group have launched a spate of claims for unpaid debts through the courts.

Boheme Apartments at Robina. Photo: Steve Holland

DOZENS of tradies stung by the collapse of the Cullen Group are seeking compensation through the courts.

Subbies have launched a spate of claims for unpaid debts in courts in the state’s south east in the past fortnight.

Of the dozen claims lodged at district court registry’s in Brisbane and the Gold Coast, most contractors have listed the developer of the multi-million dollar Boheme project, Robina Projects, as a secondary defendant in legal action against Cullen.

INSIDE STORY OF CULLEN GROUP COLLAPSE

Court documents show more than $820,000 is being sought through three claims lodged in the Southport District Court alone.

The claims list Robina Projects as a second defendant, which legally requires the developer to put aside money owed to the Cullen Group for out-of-pocket creditors.

In a statement of claim lodged to the Southport District Court on January 18, Gold Coast carpentry company MPM Contracting Australia is seeking $423,556.21.

The claim alleges six invoices for work done between September and December last year was never paid.

Boheme Apartments at Robina. Photo: Steve Holland

The total amount includes amounts for interest, filing fees and solicitors fees.

Scaffolding contractor RB Scaffolding has also lodged a statement of claim to the Gold Coast court seeking payment for 12 outstanding invoices amounting to $266,479.93.

The contractor claims they completed work at the City Village site between August and December 2016.

Scott Wildman Plumbing has also lodged claims in both the Gold Coast and Brisbane courts.

In Southport, the subbie is seeking more than $130,000 for gas fitting, plumbing and drainage work undertaken at Boheme late last year.

Concrete contractors, painters and builders are among other subbies who have also lodged claims to recover money in the Brisbane District Court.

Earlier this month, it was announced the Queensland Building and Construction Commission would be restructured after criticism it failed to protect subbies caught out in big building company collapses.

Boheme Apartments at Robina. Photo: Steve Holland

Housing and Public Works Minister Mick de Brenni said the QBCC’s response to Cullen’s collapse reflected a “failure of policy”.

Mr de Brenni said the QBCC had adequate discretionary powers to investigate the finances of building companies such as Cullen but had to strengthen its regulatory responses.

He said the QBCC concluded in February 2016 that Cullen met minimum financial requirements to complete work up to $60 million even though there were already dozens of complaints from subbies about late or non payment.

The Cullen Group was placed into liquidation in December last year.

Michael Caspaney, who was recommended by the Subcontractor’s Alliance group, has been appointed as a liquidator.