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Five lawsuits that hit the property sector in 2015

Nick Lenaghan
Nick LenaghanProperty editor
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When pollster Gary Morgan was evicted from his Collins Street offices in central Melbourne on the last weekend before Christmas, he headed straight to court.

His landlord - to whom he'd sold his historic Collins Street building only a year earlier - was a property syndicator, backed by the wealthy Liberman family.

Morgan got his day in court, but only after his lawyers had convinced a Supreme Court judge to call a 7.30am Monday morning hearing after the year's law term had finished.

Gary Morgan of Roy Morgan Research outside his Collins Street offices after a Supreme Court battle with his landlord over unpaid rent and lift repairs. Jesse Marlow

Mr Morgan triumphed at the early morning hearing, gaining re-entry to his premises after a dispute with his landlord over unpaid rent and lift repairs had left his researchers out on the street.

The dispute will be back in court for a full resolution within weeks. The spectacular imbroglio capped off a year of colourful courtroom clashes in the property sector.

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Many of those legal disputes will return to court again in coming months. Here are some of the highlights.

Grollo v Grollo

A long-running construction costs dispute which pits Daniel Grollo's Grocon against APN Property Group, which is backed by his father Bruno was lodged with the High Court last year.

The complex dispute centres on construction payments during the development of Westpac's new $180 million Melbourne headquarters on Collins Street.

The barney began over the cost of replacing defective glass used on the landmark building's facade and escalated from there.

APN Property, in which Bruno Grollo has close to a 10 per cent stake, has taken the matter to the High Court while a separate Supreme Court case is still ongoing.

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Marcus Lee v Sunland

Marcus Lee, an Australian accountant who was trapped for for almost five years in Dubai, is suing Gold Coast property developer Sunland in a $9 million lawsuit

In Brisbane, Sunland, a listed Gold Coast property developer, last year launched a court bid to strike out that action.

Mr Lee blames Sunland and its executives for his detention in a long-running case over a property deal that turned sour which subsequently attracted the attention of the Dubai authorities. He and another Australian Matt Joyce were finally cleared in 2013.

Prime Trust

Property giant Lendlease last year won a key legal victory in the long-running and complex litigation that has arisen around the collapse of retirement village group Prime Retirement and Aged Care Property Trust.

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It's not over yet for the Lendlease, which may yet become embroiled in a separate lawsuit still on foot.

Chaired by former federal health minister Michael Wooldridge, the $400 million retirement village owner Prime Trust went into receivership in 2010.

Receivers, liquidators, disgruntled investors and the corporate watchdog have been combing through the wreckage. Their investigations have spawned a series of lawsuits, including a successful Federal Court action against the Prime directors by the Australian Securities and Investments Commission.

The ASIC case is being appealed and a decision is expected soon.

ASIC v Jamie McIntyre

In October last year the corporate regulator gained Federal Court orders appointing administrators to a number of land-banking companies run by property spruiker Jamie McIntyre.

ASIC brought the action amid concerns about millions of dollars invested into the schemes by investors. The court granted an injunction preventing the promotion of five land-banking schemes in Victoria.

Nick Lenaghan edits the property section, which covers all aspects, from residential real estate and housing and construction to commercial property – office, retail, industrial – and major ASX-listed developers and real estate investment trusts. Connect with Nick on Twitter. Email Nick at nlenaghan@afr.com

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