Raptis battle heads to trial
QBCC takes on developer in court
TEFLON developer Jim Raptis’ legal brawl with the state’s construction regulator is set to go to trial as he fights to retain a Queensland builder licence.
The Queensland Building and Construction Commission has tried since April to cancel the builder licence of Mr Raptis and two of his construction companies, Ezra Constructions and Garnet Constructions.
Supreme Court Justice Debra Mullins ordered the case be listed for hearing on February 7 next year, with all submissions to be received by January 25.
Raptis’ Ezra Constructions is near completion of its 140unit tower Waterpoint Residences near Harbour Town and its 57-townhouse Panorama Residences at Carrara, which have a combined value of $47 million.
The commission was previously seeking to permanently ban Mr Raptis, 72, but an internal review in June found there weren’t grounds for permanent exclusion. Mr Raptis (above) is licensed nominee builder for both companies.
ASX-listed Raptis Group told its shareholders in August the court case would have “no material” impact on them.
However, documents filed with the court by Mr Raptis and his legal team said Garnet Constructions “is part of the publicly listed Raptis Group Limited, which has 589 shareholders”.
Mr Raptis’ evidence said a loss of Garnet’s licence was “likely to have adverse consequences on the reputation of Raptis Group Ltd and in turn to its shareholders”.
The shareholders of Raptis Group are largely made up of its creditors, including the Commonwealth, from previous failed major projects.
Documents lodged by the company with the ASX have never mentioned the major developments at Biggera Waters and Carrara, although websites for both projects link to the listed Raptis Group’s website and printed campaigns for both also feature the Raptis Group logo.
The QBCC said it considered Mr Raptis an excluded individual on the basis of him being a former director of a company named RT No2, which was placed into external administration with debts of $3.54 million in 2014.
Mr Raptis is also a previous director of another company, RT No3, which went into liquidation with debts of $7.49 million in November 2015.
Mr Raptis, Ezra Constructions and Garnet Constructions are asking the court to declare that RT No2 was not a “construction company” as defined by the Act, and that its collapse was not relevant under the QBCC Act.