Two of Launceston's high-profile developers are locked in a legal battle that could result in a $4.42 million settlement.
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The long-running case pits Josef Chromy against new City of Launceston councillor Joe Pentridge through their respective companies, RV Pty Ltd and Connector Park Pty Ltd.
Armed with new lawyers and expert witnesses, the two companies will argue their case on the extent of damages arising from a breach of contract before Chief Justice Alan Blow in the Supreme Court next year.
Justice Blow allowed the reassessment of damages after a successful appeal by RV Pty Ltd to the full court of the Supreme Court.
The case dates back to 2004 when Mr Chromy sued Mr Pentridge for breach of a contract to construct a road between two adjoining parcels of land at Kings Meadows.
RV Pty Ltd proposed a residential subdivision, while Connector Park Pty Ltd was doing a commercial and light industrial subdivision on its adjoining land.
"The contract obliged the defendant [Connector Park] to complete the construction of a roadway through its land to the plaintiff's [RV Pty Ltd] land," Justice Blow said in his decision.
"The defendant failed to construct the roadway by a date required by the contract."
Mr Chromy sued Mr Pentridge for damages because of lost earnings on the residential subdivision.
In April 2017, Justice Blow assessed the damages in favour of Mr Chromy at $2.520 million but also allowed a counterclaim of $440,000 in favour of Mr Pentridge.
"I assessed the [RV Pty Ltd] damages on the basis that it had suffered losses as a result of delays in the development of its subdivision resulting from the delay in the construction of the roadway," he said.
However, the full court set aside the $2.5 million figure after an appeal citing errors in the method of calculation.
Justice Blow found it would be in the interests of justice to allow a new calculation given that all the [RV Pty Ltd] building blocks had been sold and that actual cash flow figures could be used in the calculation.
"In the plaintiff's proposed amended particulars, its primary claim is for $4,422,000 representing discounted losses as of April 2017," Justice Blow said.
In his decision, Justice Blow referred to the very slow movement of the matter because of its complexity.
"This is an exceptional case," he said. "It is a case where there must be a re-opening."
"Complicated expert evidence will have to be given by at least two accountants."
"In my view, the justice of the case requires the plaintiff to be permitted to rely on actual cash flow evidence for the period from May 2014 just as the defendant should be permitted to rely on any calculations that its expert considers appropriate."
Mr Chromy and Mr Pentridge, also known as Joe Pintarich, have been in the news in 2022.
Mr Chromy sold the Josef Chromy Estate and wines business at Relbia for more than $50 million. He is seeking approval for a $50 million Gorge Hotel in the Tasmanian Civil Administration Tribunal.
And Mr Pentridge was the fourth-highest polling candidate when he successfully stood for the City of Launceston council, polling 2694 votes.
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Nick Clark
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
