IN a NSW legal first, notorious Newcastle-based building industry shonk Daniel Roberts has been ordered to pay more than $1 million to a group of mum-and-dad developers after he deliberately ransacked their Jesmond construction project.
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Roberts, of Wallsend, is the first person in the NSW construction industry to be held personally liable for being negligent under new laws designed to tighten protection for homeowners and owners' corporations.
Described by the NSW government as the 'biggest shake-up in building laws in our state's history', the changes were introduced in 2020 in the wake of Sydney's Opal Tower fiasco, in which design and construction failures contributed to faults in the 36-storey building.
Under the new laws any person who carries out construction work, not just licenced builders, has a duty to exercise reasonable care to avoid economic loss caused by defects and negligence.
Roberts was overseeing the commercial construction of a boarding house in Goodwin St, Jesmond, for DSD Builders - controlled by his then wife Angela Sendjirdjian and now in liquidation - when a dispute broke out in early 2018 about money and defects.
The BMW-driving Roberts lost a court bid to overturn a Supreme Court ruling that he is personally liable for defects, damage and theft at the development site estimated to be worth almost $900,000, plus legal costs.
The Supreme Court ruled last year that following the dispute, Roberts took to deliberately trashing the property and stealing building materials. Sewer pipes were blocked with concrete, a circular saw used to cut through structural beams, holes drilled through walls, plumbing, external cladding and the roof and the bathroom waterproofing was deliberately damaged.
Roberts also stole the internal stairs, skylights and almost every window and door from the property.
Goodwin Street Developments was successful in pursuing a claim for $586,000 to rectify the damage and replace stolen goods and $300,000 to fix defects.
The court heard the development was riddled with defects, including an exposed unsupported pier footing, frame built on sewer pipes, brick retaining wall not waterproofed, non-existent termite protection system and black mould on timber frames.
Developer Jeff Stokes said the investors were about $4 million out of pocket following the five-year legal battle, while the boarding house sits derelict and unfinished.
Mr Stokes said while he was "over the moon" that pursuing Roberts set a legal precedent and could help others in future claims against dodgy building industry operators, the fight with Roberts was far from over. The developers now have to pursue the notorious non-payer for the money.
"We will still have a very large shortfall, even if we get the full amount he owes," he said. "The legal fees we wasted chasing DSD can't be recouped as its in liquidation and the loss of of rent is enormous because the property had 33 studio rooms.
"The best solution is to try and finish this somehow and recoup the money he has been ordered to pay, but that is going to cost more money."
A Newcastle Herald investigation revealed in November 2020 that Roberts and his business partner Shashanth Shankar Tellakula Gowrishankar were linked to numerous building companies accused of leaving a string of construction and financial disasters across the Hunter.
Dozens of people - including homeowners, tradies, developers and suppliers - spoke to the Herald, alleging a host of defective or incomplete work and unpaid bills causing nightmares for unsuspecting homeowners and businesses.
- Know more? Donna.page@newcastleherald.com.au
