On 20 February, 2025 Lawyerly reported Class action fends off Clydesdale Estate liquidator’s bid to ‘destroy’ claim
A class action lawsuit has been filed on behalf of individuals who purchased off-the-plan homes in the Clydesdale Estate, located in north-west Sydney. The lawsuit is against the developer, Cyan Stone Clydesdale Estate, owned by Bouyan Holdings. The plaintiffs allege that their contracts to purchase homes in Marsden Park were unlawfully frustrated by an $85 million sale of the lots to Astro Fort in June. Clydesdale entered liquidation in September of the previous year.
During a case management hearing before Federal Court Justice Ian Jackman, Clydesdale’s liquidator, Stephen Hathway, sought to deny responsibility for the contracts with the homeowners. Counsel for the liquidator acknowledged that this application would effectively destroy the homeowners’ bid for specific performance. Jill Gatland, representing the liquidator, noted that the homeowners’ class action was not the only claim against Clydesdale, as the Commissioner of Taxation was also a significant creditor.
Michael Hines, counsel for the homeowners, requested that the liquidator’s application to disclaim the contracts be adjourned until after the class action trial scheduled for May. He mentioned that the homeowners and Astro Fort were currently engaged in court-ordered mediation. Justice Jackman agreed that disclaiming the contracts would undermine the specific performance remedy and adjourned the liquidator’s application indefinitely, with the option to apply for a hearing date if necessary.
The class action was initiated in August by lead applicants Shashank and Natalia Bist, representing those who purchased lots in the Clydesdale development from Cyan Stone Clydesdale Estate. Astro Fort, which later acquired the development, is also named in the lawsuit. In a decision handed down in September, Justice Geoffrey Kennett rejected the applicants’ bid for urgent interlocutory relief to prevent the marketing or sale of lots in the development, citing a lack of sufficient evidentiary foundation. The judge noted that the applicants had not explained any implied terms in the contracts that would constitute a breach of contract due to the sale of the land.
In a later hearing, Justice Jackman noted the claim was based on express contract terms requiring CSDE to complete the sale. In December 2020, the lead applicants contracted to buy a lot for $615,000, conditional on plan registration by December 31, 2024. They later learned the land was sold to Astro Fort. The suit seeks specific performance, declarations of trust, orders for the NSW Registrar-General to effect the contracts, or alternatively, equitable damages, compensation under Australian Consumer Law, and tort damages. The class action alleges unconscionable conduct, failure to provide services, and tortious inducement of breach of contract.
The class action is instructed by William Roberts Lawyers.
Shashank Bist & anor v Cyan Clydesdale Estate 1 Pty Ltd & ors
For more information and how to join the class action please click here
