The story that relates to the Craigieburn Development by John Rolfe has proved to be misleading to the readers. Since the publication of the story our legal representatives have proceeded to draft a Claim and Statement of Claim to be filed in the Supreme Court of NSW.
Even though there was a formal complaint filed with the Australian Press Council, the APC has elected not to pursue the complaint due to a rule that if litigation is foreshadowed then the APC cannot intervene.
Therefore litigation is expected to commence shortly against the publisher and the journalist.
We shall keep you informed of the progress of this matter.
The Craigieburn developer was known as a major builder in Victoria who had been in business we understand for a significant time. The developer had the ability to borrow funds from major bank/s and therefore there was no reason to suspect that the developer would fail in the completion of the project.
The statutory insurer of Victoria audited the losses sustained by the victims and did pay those amounts out to the insured.
However there was no obligation to pay the insured more than their entitlement. It was then up to the victim to engage another licensed builder and then to use the balance of the unused loan to complete the building/s and these people had instructed their own lawyer to assist with this.
Therefore as much as the Club states we assist Club members when a situation arises, we are not responsible for a developer / builder failing in a commercial venture.
The bankers were not responsible for the developer going out of business any more than the Property Club.
As much as the Club regrets the stress this may have caused the buyers they were legally advised and recipients of the statutory insurance payouts.