This article is from the Australian Property Journal archive
CP1's subsidiary Marina Cove is being sued by the builder of its Martha Cove development.
Marina Cove has been served with proceedings filed in the Supreme Court of Victoria by Pearl Hill, the builder of the Stage 1 homes at Martha Cove.
The claim relates to a dispute regarding the construction contract for the Stage 1 dwellings and the subsequent terms of settlement regarding the dispute. The proceedings are on hold, pending the filing of an amended statement of claim by Pearl Hill. After that is received Marina Cove will be required to respond.
CP1 said the precise remedies being sought by Pearl Hill will be known when Pearl Hill’s amended statement of claim is served. But the company added that it intends to vigorously defend the claim and will lodge a substantial counterclaim against Pearl Hill.
“Marina Cove considers that it will not have any liability to Pearl Hill arising from the claim,” CP1 said.
CP1 is currently in negotiations with lenders give an extension to $15 million of debts associated with Marina Cove that was due on May 30.
Australian Property Journal