A legal dispute between a Melbourne developer and a builder over a $6.48 million contract payment has escalated to Victoria’s highest court, highlighting complex issues surrounding building licenses and contract obligations.
The conflict involves Triple One Gardenvale, the developer behind the luxury five-storey project known as Triple 1 Residence or The Ardern, located in Melbourne’s southeast. Initially, Triple One Gardenvale filed suit against Belot Property Group, the builder, alleging construction defects and project delays. However, after completion, the developer intensified the dispute by seeking a full refund of all payments made to the builder, claiming Belot lacked the appropriate commercial builder registration to construct the project’s office and conference spaces.
Triple One Gardenvale contended that while Belot held domestic builder registration, it did not possess the necessary commercial license for parts of the development, and also accused builder director Harley Belot of misleading or deceptive conduct under Australian Consumer Law for allegedly misrepresenting the company’s licensing status.
Belot Property Group rejected the claims and responded with a $2.2 million counterclaim. Around half of that amount relates to unpaid contract variations owed by Triple One Gardenvale. The builder further pursued legal action against developer director Gaspare Sirianni and former shareholder Saverina Sirianni, invoking personal guarantees tied to the contract.
Founded in 2005 by Harley Belot, the Port Melbourne-based company operates two divisions: a custom luxury residential arm and Belot Commercial, which manages commercial projects such as childcare centers. Belot’s profile includes awards like the 2021 Housing Industry Association (HIA) Victorian Home of the Year.
A key development in the case occurred in the County Court in April when a judge ruled that the licensing laws cited by the developer apply strictly to domestic building work, not the commercial components of the project. As a result, the court struck out the refund claim in June.
Seeking to overturn this decision, Triple One Gardenvale applied for leave to appeal to the Court of Appeal. However, in October, Justices Richards and Osborn imposed a $50,000 upfront security for costs to allow the appeal to proceed. The judges expressed concern that Triple One Gardenvale, described as a shell company lacking material assets post-development, posed an unacceptable risk of being unable to cover adverse costs if the appeal failed.
The Triple 1 Residence complex at 111-113 Gardenvale Road includes 10 residential apartments, a ground-floor office, a conference room, and underground parking. Completed in 2023, the project was marketed by Spark Property Development and designed by Finnis Architects.
The case is ongoing as legal proceedings continue to resolve the competing claims over licensing requirements, contract payments, and alleged breaches relating to the upscale Melbourne development.