Litigation funding secured in class action against BGC over new home delays

Thousands of BGC Housing Group customers frustrated by lengthy delays to build a new home have secured litigation funding to bankroll a class action lawsuit against the construction giant in the Federal Court.

Morgan Alteruthemeyer Legal Group announced on Thursday morning it had secured funding with Omni Bridgeway Limited to proceed with a class action on behalf of homeowners who entered into home building contracts between July 1, 2019 and June 30, 2022.

One of the many the unfinished homes in Apsley Estate, Perth.Credit: Ross Swanborough

Up to 5000 homeowners could join the class action seeking compensation against BGC for losses they have suffered arising from delays in the construction of their homes.

Morgan Alteruthemeyer Legal Group Building and Construction Partner Spencer Lieberfreund said securing funding was a significant step forward for BGC homeowners who have suffered financially from the delays in building their homes.

“A class action against BGC offers individuals a way of seeking financial compensation without being exposed personally to legal costs,” he said.

“We encourage impacted homeowners to join the class action.”

The announcement has been welcomed by the founders of the BGC Proposed Class Action Group Jess Spithoven, Tanya Princi and Domenica Vecchio, which currently has more than 2200 members.

The trio have led a grassroots campaign to raise awareness of the financial hardship BGC homeowners have borne as a result of building delays.

Spithoven encouraged any impacted BGC home owners to register to join the class action.

“We are pleased to learn of the litigation funding announcement regarding the class action but securing funding to commence a class action is not enough,” she said.

“We need all BGC homeowners who have suffered or will suffer financially because of BGC’s delays to come forward and register to join the class action”.

BGC Housing Group includes Aussie Living Homes, Homestart, Smart Homes for Living, Now Living, Terrace and Ventura South West.

In April, the company announced a halt to all new sales to concentrate on the completion of its existing home builds.

It has previously blamed significant delays facing all clients building in WA on external factors.

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