Traders take legal action against council over Prahran’s Cato Square redevelopment

It’s already claimed more than 20 businesses and pushed one trader to the brink of bankruptcy — now, a blown-out Prahran construction project is set to wind up in court, with up to 150 traders planning a class action against Stonnington Council.

Traders say the works have cost them tens of thousands of dollars. Picture: Valeriu Campan. Picture: Valeriu Campan

Lawyers say almost 80 Prahran traders have signed up to be part of a class action against Stonnington Council and that figure could rise to 150 people.

The cafe and store owners claim construction work on Cato Square is killing business.

The Leader last month reported on the brewing legal action, after traders spoke out about the devastating effect of the redevelopment work which began in the precinct in January last year.

The $60 million project, which includes more than 9000sq m of open space and two levels of underground parking, has still only partially been completed.

Mitry Lawyers principal Rick Mitry confirmed the class action, saying there was almost 80 claimants who had already registered their interest.

“The brief is with barristers in Melbourne … and we’ll submit it to litigation funders and if they come on-board we’ll prepare a community meeting and a statement of claim,” Mr Mitry said.

Pierrick Boyer was on the verge of bankruptcy because of construction works. Picture: Josie Hayden

He said the number of claimants was expected to grow to at least 150, as landlords in the area were also being approached.

“Every government is allowed to undertake infrastructure projects but they must act reasonably.”

Renowned pastry chef Pierrick Boyer has said he welcomed the class action after he was forced to shut the doors of his self-titled cafe and patisserie on Izett St in October.

“We feel decimated — 24 businesses have shut down because of the works and I’m the only one to reopen — it’s just been so terrible.”

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Mr Boyer said he lost hundreds of thousands of dollars because of the disruption and had to liquidate, sell his house and was on the verge of bankruptcy due to the works.

Prahran Foot Clinic owner Jesse Hibbs said people would be “hard-pressed” to find a business in the precinct that had not been adversely affected by the works.

Stonnington Council Mayor Steve Stefanopoulos said the council worked closely with local businesses “from the project’s inception and throughout construction, including weekly updates, monthly meetings and site tours”.

He said Prahran Square was on track to be open for the 2019 festive season.

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