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Brisbane law firm Carter Capner Law has filed a class action against a company in the Dennis Family Corporation (DFC) alleging homebuyers' off-the-plan contracts were wrongly terminated after the market value of finished units soared by more than 40 per cent.
Carter Capner Law yesterday filed a class action in the Supreme Court of Queensland on behalf of buyers who signed contracts in the Summerlin Parklands Estate at Banyo and paid deposits in 2021.
The lawsuit alleges Victorian company Ivedon Street Pty Ltd misled buyers of units in Summerlin Parkside by falsely claiming in February 2025 that the contract’s “economic viability” clause entitled it to unilaterally cancel their sales.
The law firm claims the building was left half-finished until works on site recently re-started.
Carter Capner Law director Peter Carter recently hit out at developers that use sunset clauses as legal levers to cancel in favour of re-selling units for far higher sums, and asserts "unscrupulous terminations are far more widespread than we know about".
"In this case, all 27 buyers were misled by the developer,” he claims.
"They are entitled to the finished product or the difference between the contract price and what the finished product currently values at."
He says many buyers in the Summerlin Parkside case innocently accepted the return of their deposits while others refused to acquiesce despite threats that the developer would send on their “unclaimed” deposits to the Public Trustee.
Carter says the lawsuit is on behalf of all Summerlin Parkside buyers, regardless of whether they received their deposit back or not.
The lawsuit states that the two-bedroom, two-bathroom top floor units were sold at $465,000, while “resales in neighbouring buildings put the current value of those units at $800,000”.
“Devasted buyers - many of whom are first-home purchasers - all face the same outcome.
“After years of waiting, they are left homeless and priced out of a market that has moved dramatically beyond their reach.
"Some have sold existing homes in anticipation of moving into new apartments, only to find themselves scrambling for alternative accommodation - or unable to afford anything comparable at today’s inflated prices."
He urges other off-the-plan apartment buyers to obtain specialist legal advice if a developer seeks a sunset or economic viability termination.
“Don’t take the developer’s word for it when you are told that the contract allows them to walk away from their obligations, as in many cases they are just trying to take advantage of you, and you may lose hundreds of thousands of dollars of appreciation,” he says.
Dennis Family Corporation's response
In response to the class action, a spokesperson from Dennis Family Corporation (DFC) says the financial viability of the Summerlin Banyo project was impacted by the builder entering liquidation in mid-2024, prompting a decision for DFC to exercise its contractual rights to terminate in those circumstances.
"Dennis Family Corporation (DFC) is a family-owned business committed to increasing housing supply in Queensland through the responsible development of residential communities," the spokesperson says.
"DFC made the difficult decision to terminate contracts in stages 3, 4 and 5 of its Summerlin Banyo project after the appointed builder went into liquidation in mid-2024.
"DFC has engaged with purchasers to seek to resolve all contract issues. The majority have accepted the return of deposits with interest."
The corporation says it will continue to work through any remaining issues with relevant stakeholders.
"At all times, DFC has sought to act in line with its contractual obligations and will continue to do so," the spokesperson adds.
"DFC remains committed to contributing quality developments to Queensland communities for decades to come."
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