Company is accused of refusing to pay a contractor for work and materials
Property developer Jean Nassif’s construction company is facing a lawsuit totalling nearly $4 million, just weeks after Nassif’s daughter was charged in a fraud investigation.
Failure to pay
Nassif is the sole director of construction company Toplace. The company has been accused of failing and refusing to pay invoices of more than $3.8 million to a Sydney-based contractor, Transform Constructions.
Transform Construction alleged that Toplace is also withholding framework material such as timber, plywood and frames valued at more than $4.8 million at a construction site in Sydney. A forklift, slab formwork system and a shipping container containing other equipment worth $220,000 is also allegedly locked up in the construction site, The Australian reported.
According to documents filed with the Supreme Court of NSW, Transform Constructions director Laith Khedher allegedly made a verbal agreement with Nassif in or around December 2021 to supply and install framework at a Toplace development in Box Hill. Transform Constructions alleges that in October 2022, it was locked out of the construction site and prevented from removing equipment and materials.
“On 27 October, 2022, Toplace refused to pay Transform for work carried out and materials supplied by Transform in accordance with the agreement,” the court documents said. “As a result, Transform is unable to pay subcontractors and employees who have carried out work and supplied materials to the site.”
Transform claims that since it has allegedly not received payment for the materials, it has an “immediate right to possession”.
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According to a ledger filed with the court, Toplace paid Transform $1,285,764 between January and September 2022, The Australian reported.
Last week, the court gave an order restraining Toplace from “dealing” with the equipment and materials. On Monday, Judge Michael Ball ruled that Toplace could continue to use equipment and materials to avoid construction delays, with payment to be determined later.
Toplace is hardly the only construction company being accused of failing to pay subcontractors. With builders facing a perfect storm of rising costs and labour shortages, many construction firms have collapsed, leaving subbies unpaid and projects unfinished.
Developer’s daughter charged
The lawsuit comes after a Feb. 28 raid on Nassif’s home and the Toplace office as part of a fraud investigation into his daughter, Ashlyn.
Ashlyn Nassif was charged with dishonestly obtaining financial advantage by deception and publishing false, misleading material to obtain advantage, according to The Australian. She has not entered a plea.
Her father, who is overseas, has not been charged or accused of wrongdoing.
Ashlyn Nassif was removed as an alternative director of Toplace following her arrest, according to documents filed with the Australian Securities and Investment Commission.
This article originally contained incorrect information regarding a caveat lodged on Jean Nassif's home. We regret the error.
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