Central Pier traders launch legal action against Development Victoria
Tenants of Central Pier have joined together to sue Development Victoria claiming it failed to adequately repair the damage pier and knew in June 2015 it was deteriorating at a fast rate.
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Central Pier businesses have launched legal action against Development Victoria in the Federal Court.
A statement of claim against the government body in charge of the Docklands precinct was lodged yesterday.
It came after the pier was abruptly closed due to fears over its structural integrity, and with no time frame on when it might re-open.
According to the claim, Development Victoria had engaged in “misleading and effective conduct” — the businesses allege it failed to adequately repair and maintain the 100-year-old structure so the tenants could remain there until the end of their lease in 2026.
At the heart of the claim is an allegation Development Victoria knew in June 2015 the pier was deteriorating at a faster rate, despite the repair works that were being carried out.
The businesses claim the repairs were inadequate and Development Victoria “did not act reasonably” when it shut the pier down on August 28 and was in breach of its obligations under the tenants lease agreements.
The eight businesses say they are entitled to remain at the pier until 2026.
“The actions of development Victoria in refusing the proper exercise have been unconscionable because Central Pier had not committed any default under the head lease … and has never persistently defaulted under the terms of the head lease.
A spokesman for the group said the figure being sought was “substantial”. It has previously been reported it could be as high as $100 million.
“Development Victoria knew Central Pier was deteriorating at an increasing rate despite its repair works but it elected not to allocate proper funding to deal with the deterioration,” the spokesman said.
Development Victoria needed to be held “accountable for its actions” and needed to be “held accountable for its actions”.
The standard of the repair work commissioned has been called into question.
“There are now serious questions as to whether Development Victoria’s repair work over the past two years have actually made things worse.”
The tenants have invested about $50 million into revamping the heritage listed site since 2007.
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The spokesman said Development Victoria had “completely mishandled and mismanaged this situation” by failing to give clarity to the 1300 people who worked at the pier.
The loss of the pier coming into the busiest event season of the year was an “embarrassment for Melbourne”.
“We want to work proactively with Development Victoria to fix this mess as quickly as possible but the longer we wait for clarity and certainty, the harder it becomes for the staff and businesses of Central Pier.