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ARTICLE · 11 MAY 2025

Victoria opens the door (a touch wider) for cladding recoveries

Gilchrist Connell
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State of Victoria (Department of Transport and Planning) v L.U. Simon Builders Pty Ltd & Ors [2025] VSCA 52.

AustraliaReal Estate and Construction
Katherine Czoch
Katherine Czoch
Samantha Hocking
Samantha Hocking
Jack Gauvin
Jack Gauvin
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Overview

In the recent decision in State of Victoria (Department of Transport and Planning) v L.U. Simon Builders Pty Ltd & Ors [2025] VSCA 52, the Court of Appeal held that State of Victoria can recover from a builder funds paid to an Owners Corporation under the Cladding Safety Victoria program to replace combustible cladding, even though part of the cladding was owned by individual lot owners.

Background

This case arose from the State's efforts to recover funds spent on rectifying non-compliant cladding on the Atlantis Towers in Melbourne as part of the Cladding Safety Victoria program. The State, through the Victorian Building Authority (VBA) and Cladding Safety Victoria (CSV), had funded the Owners Corporation to remove and replacement of combustible cladding on the building.

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