By Danielle Galvin
THE $100 million lawsuit against the State Government over a Pakenham South land deal has been dismissed in the Supreme Court.
The land’s previous owner, property developer Candibon Pty Ltd, was suing the State Government.
Candibon claimed that it had lobbied State Governments and Cardinia Shire Council over several years to have the land rezoned for development.
Company directors claimed that the then Planning Minister Robert Maclellan told them that the site had limited urban potential.
The company sold the land to the government which then transferred it to Cardinia Council.
Five years later the land was rezoned and is now being developed into the SouthEast Business Park.
In February 2006 Candibon began a lawsuit against the State Government for the land’s current value. The five year court battle drew to a close on 29 August when Justice Karin Emerton dismissed the case.
Bronwyn Perry, a spokesperson for the State Government, refused to comment on the case.
“The matter has been determined by the court and we have no further comment,” she said.
The State Government purchased 197 hectares of the 255 hectare site on 17 March 1998 for $2.1 million after a number of meetings with Candibon directors.
The sale included land earmarked for the Princess Highway Pakenham Bypass.
Candibon claimed that at these meetings the then Planning Minister and ex-Pakenham MP Robert Maclellan told company directors that the site had limited potential for development and could not be rezoned.
The directors of the company claimed that they were “considerably worse off” for having sold the land to the State Government.
In the judgement, Justice Emerton rejected Candibon’s claims that the former Minister had promised that the site wouldn’t be rezoned and sold off as a business park.
“Principally, it has not established that the statements were made at all, let alone made knowing them to be false,” she said.
In 1999, Cardinia Shire Council took ownership of the site in a land exchange agreement with the State Government.
Five years later the land’s limited development zoning was lifted and restrictions to be lifted.
The site is now jointly owned by property developers Parklea Pty Ltd, the McMullin Group and Cardinia Shire Council.
The Gazette believes Candibon will appeal the judgement.
Mr Maclellan did not return the Gazette’s calls.
