Cook Government lawyers intervene in legal case from BGC customers with faulty piping in new homes

Attorney-General Tony Buti is intervening in a legal case to ensure long-suffering BGC customers are not left to fight the building giant on their own. The outcome of Monday’s hearing in the State Administrative Tribunal (SAT) has potential ramifications for hundreds of WA customers living in new homes prone to leaks and flooding due to faulty piping. Thousands of homes have been damaged by water leaks and bursts related to the Pro-fit (Typlex 1050) polybutylene piping, manufactured by Iplex Pipelines Australia. Although BGC companies built 50-60 per cent of the affected homes, it rejected a deal brokered by the State Government with the pipe manufacturer last year to address the situation. Some 37 other builders signed up to the so-called Joint Industry Response, which provided funds for the defective piping to be replaced, including $30 million pitched in by the Government. To ensure BGC customers were not disadvantaged by the builder’s non-participation in the agreement, the WA Government promised them a “similar rectification pathway”, which would involve the Building Commissioner issuing remedy orders to the company to fix the homes. BGC companies responded to the move by applying to the SAT to stay the first batch of remedy orders pending another court case which is reviewing their use in general. And it wants to adjourn those review proceedings pending resolution of a separate case in the WA Supreme Court in which it is challenging the Building Commissioner’s jurisdiction to issue the remedy orders. The fear for those home-owners who’ve secured remedy orders is that a stay on their cases would delay repairs on their homes for years, during which they would remain susceptible to more devastating water leaks and bursts. It would also stall more homeowners who are in the process of securing remedy orders to end their water torture. The significance of Monday’s hearing prompted Mr Buti to use his powers to intervene. “The Minister (as Attorney General) instructed state counsel to intervene as a party in the various proceedings involving homeowners and BGC entities to ensure the public interest in these matters is represented and homeowners are not left on their own,” a Government spokesperson said on Friday. The Sunday Times understands the homeowners, whose cases are subject to the stay applications, have all suffered at least eight pipe bursts so far. They want their homes re-piped, rather than more patch-up jobs. The homeowners have had to spend thousands of dollars on legal representation to fight the builder. Adding to their anxiety is the prospect of BGC appealing any adverse decision by the SAT to the Supreme Court. BGC is separately suing Iplex in the Federal Court, alleging the pipes weren’t fit for purpose, while the manufacturer has defended its product and claims the pipes failed because they weren’t installed correctly. BGC defended its position on Friday while repeating its call for a product recall to resolve the pipe saga. “An expert report commissioned by the WA Government found that the primary cause of the pipe failures was Iplex’s defective product — not builder error,” a BGC spokesperson said. “On that basis, BGC is challenging the Building Commissioner’s jurisdiction to hold builders responsible for a manufacturer’s faulty product. “We’ve consistently proposed a staged product recall, similar to the Joint Industry Response, which would provide certainty for homeowners and avoid the need for ongoing legal action. That decision ultimately rests with the State Government. “In the meantime, BGC continues to respond to pipe bursts, re-pipe ceilings and facilitate the installation of leak detection units. We remain committed to a full and final resolution that addresses this issue for every impacted homeowner, while holding the manufacturer accountable. “To ensure this is the case, BGC continues to prosecute its action against Iplex in the Federal Court, alongside the consumer class action, which is the appropriate jurisdiction to resolve this matter.” The class action was commenced in the Federal Court in August last year. Iplex filed its defence three months later and brought cross-claims against entities in the BGC group of companies and the plumber that installed pipes in the home of the lead plaintiff in the class action.