Prominent property developer Gary Dempsey has taken legal action against Klopper and Davis Architects, claiming the firm is harboring concept designs for his proposed oceanfront apartments in Scarborough.
According to a writ lodged in the District Court, the dispute centres around an architectural consultancy contract Gary Dempsey Developments and the firm allegedly signed in March 2020 to develop Mr Dempsey’s block at 194 Brighton Road.
Mr Dempsey acquired the Scarborough block for $5 million back in 2019, flagging plans to build apartments with panoramic oceanfront views.
At the time, he told Business News he would be looking to develop a project with 12 to 15 storeys, with a maximum height of 20 storeys.
Under the deal, Mr Dempsey claims Klopper and Davis agreed to provide concept designs and assist in preparing a development application over a 32-week period.
Further, Mr Dempsey claims the firm was required to provide monthly status updates on the project’s progress, cost, milestones and an invoice.
In the writ, the property developer claims the deal was worth between $250,000 and $370,000, with the final cost hinging on how many storeys the firm could get over the line with the approvals bodies.
Under the terms of the agreement, either party could terminate it without reason at any time, but Dempsey would have to pay fees for any services provided up to that date.
In October last year, the firm allegedly did exactly that, emailing Mr Dempsey and terminating the agreement.
But Mr Dempsey alleged no development application had been completed or made by the firm, despite him paying fees in the order of $193,000.
Dempsey claims the alleged failure hindered the completion of the project and caused him loss and damage.
The developer has now sought to source another architect to finish the project, claiming Klopper and Davis have failed to handover the concept designs prepared.
According to the writ, Mr Dempsey wants the court to grant him loss and damages, interest on those amounts and for Klopper and Davis to foot the legal bill.
A directions hearing due to take place in the District Court today was adjourned, following the submission of consent orders by Mr Dempsey’s legal team.
Klopper and Davis said the matter was now with its insurers and it was unable to provide comment.
