BGC class action set to commence in early 2024

The proposed class action lawsuit against Perth builder BGC is set to commence in the new year with thousands of delay hampered homeowners having registered.  

Fremantle-based law firm Morgan Alteruthemeyer Legal Group told Business News the proposed class action was set to commence in early 2024.

The milestone comes after all the pre-conditions with the proposed class action funder ASX-listed Omni Bridgeway were met, according to Morgan Alteruthemeyer Legal Group (MALG). 

Since announcing the securing of funding from Omni Bridgeway in September, the local law firm said thousands of BGC homeowners had registered to join the anticipated legal action. 

“It is great news that all funding pre-conditions have been achieved and we look forward to representing and achieving justice for thousands of Western Australian homeowners and their families who have been severely impacted both financially and mentally by BGC’s building delays,” MALG building and construction partner Spencer Lieberfreund said.

The proposed class action against BGC Housing Group is on behalf of homeowners who have experienced significant delays in home builds, with some timeframes blowing out to four years before handover. 

MALG said the delays were having a "severe impact on affected BGC homeowners, some of whom are struggling to pay both mortgages on their incomplete BGC home builds as well as rental rates in an expensive and scarce rental market being experienced in Perth." 

Affected homeowners Jess Spithoven, Tanya Princi and Domenica Vecchio are behind the proposed class action getting underway, after creating the Proposed Class Action Group on Facebook.

The proposed class action covers homeowners who entered into building contracts with BGC between July 2019 and June 2022.

In April, BGC announced it was closing its books for the foreseeable future to concentrate on completing its existing builds under construction.

After the proposed legal action was announced in September, a BGC spokesperson said the group took the potential class action seriously and that it would vigorously defend any action.

BGC declined to comment.