Residential developer Peet is suing major landholder G&M Candeloro Nominees for more than $1.3 million over a six-year-old sales management agreement between the parties.
According to a writ lodged in the Supreme Court this week, the dispute revolves around a 2015 development, marketing and sales management agreement between the entity, its super fund and Peet’s development management arm.
The agreement involved G&M, which is understood to own a swathe of rural land in Toodyay, appointing Peet to develop and manage 10 parcels of land, with 150 subdivided lots to be sold over the five-year period of the contract.
But in November 2020, Peet wrote to the owner conceding the threshold would not be reached by the end of the contract and, as development manager, the company had the right to terminate the agreement.
The developer confirmed that in a letter to the business’s director Giuseppe Candeloro on November 9, 2020, explaining 31 subdivided lots had been sold – just one-fifth of the number required.
Peet claims it was entitled to terminate the agreement, which it did, with its lawyers at HWL Ebsworth emailing G&M Candeloro a termination notice, Peet’s tax invoice and sending a letter to the owner of the super fund.
In the writ, Peet alleged G&M Candeloro was required to pay it a termination fee no later than February 3, but has failed to do so despite repeated requests.
The land developer has now taken the matter to the Supreme Court, pushing for the owner to pay the $1.375 million it alleges it is owed under the agreement, as well as damages, interest and court costs.
