Firm backs 'concerned' BGC customers in class action

The Perth law firm prepared to represent hundreds of aggrieved homeowners in a class action against BGC Housing Group has assured participants concerned over backlash.

Morgan Alteruthemeyer Legal Group building and construction partner Spencer Lieberfreund said they had received feedback some homeowners hadn’t registered due to concerns the builder could “further delay the building of their home”.

But the lawyer has assured affected customers they shouldn't face any further building delays for “simply” exercising their legal rights.

Business News is not suggesting BGC Housing Group would further delay any home builds, and the builder has been sought for comment.  

“The feedback we are receiving is that some homeowners have not yet committed to joining the class action as they are concerned BGC can further delay the building of their home,” Mr Lieberfreund told Business News.

“BGC cannot take any steps to further delay construction for any owners simply because they are exercising their legal rights to join the class action.”

Earlier this month the Fremantle-based law firm announced it had secured litigation funding from ASX-listed Omni Bridgeway to pursue the class action against BGC.

The class action would be seeking compensation from BGC for alleged losses suffered from unauthorised delays on home constructions, according to the legal group.

Affected homeowners Jess Spithoven, Tanya Princi and Domenica Vecchio founded the Proposed Class Action Group on Facebook and led a campaign to initiate the legal action.

According to a poll conducted in their 2,500-member strong Facebook group, almost 500 affected customers responded they had registered to join the proposed class action.

More than 130 people said they intended to join the potential lawsuit, while almost 40 people said they were still undecided.

It is not yet publicly known how many people have actually registered to join the potential class action so far.

But Mr Lieberfreund said the law firm was pleased with the registration numbers achieved in the past 10 days. 

“Since the announcement on September 7 that funding has been secured with Omni Bridgeway to proceed with a class action against BGC Housing Group we are pleased with the level of interest and the number of homeowners who have already committed to joining the class action,” he told Business News.

The proposed class action covers homeowners who entered into building contracts with BGC between July 2019 and June 2022, and it will need a certain number of participants to proceed.

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

Earlier this month, a BGC Housing Group spokesperson said the group took the potential class action seriously and that it would vigorously defend any action.

In the same breath, the housing group took aim at the wider construction industry, namely labour and materials shortages it said were beyond its control.

It comes as homebuilders face increased pressure from cost blowouts incurred from fixed price contracts, coupled with strong demand from the state government's stimulus package.

Last Friday, a group of about 50 disgruntled homeowners gathered outside the State Administrative Tribunal to protest against BGC.

One of which was veteran and BGC customer John Whinnen, who has a dispute against the housing group’s subsidiary J Corp scheduled to be heard at the SAT in October.