CANAL and lakefront property owners will be part of a class action against Redland City Council unless they opt out.
Shine Lawyers have filed the action on behalf of Raby Bay, Aquatic Paradise and Sovereign Waters property owners over a canal maintenance levy.
The action is in the name of Birkdale resident John Michael Kozik. It has been brought on an open class basis, meaning that it is on behalf of all property owners who paid a special charge - collected to dredge, maintain and repair canal and lake estates - between July 1, 2011 and March 31, 2017.
It is understood that the action could apply to 1650 owners.
In 2017 the council found that due to a technical glitch the special charge was not compliant with state legislation. The council refunded the funds that it had not spent.
According to a notice ordered by the Supreme Court, owners who do not opt out of the class action will be bound by the judgement or settlement.
In a class action, plaintiffs like Mr Kozik do not need the consent of group members, or people who have the same or similar claims, to start proceedings.
The notice stated that group members can either choose to remain as part of the action or opt out.
Several Raby Bay and Birkdale residents said they had heard about the class action but were not aware that they were part of the action unless they opted out.
Opting out requires completion of a form that must be submitted to the Queensland Supreme Court by 4pm on October 4.
"You do not need to do anything to stay as a group member in this class action," the notice said. "If you do not opt out, you will maintain the opportunity to benefit from any favourable outcome that is reached in the class action. This also means that you may be bound by any judgement or settlement of the proceeding."
The notice said that the court may require members to confirm their participation in due course.
The notice said the council denied it was liable to refund the spent portion of the special charges to the group members, or people involved in the class action.
"This is on the basis that the portion of the special charges which were spent by council were for goods and services to group members from which group members benefited," the notice said.
If the action succeeded, the individual group members would recover the spent part of the special charges, minus fees for lawyers and the funder of the action Augusta Ventures Limited.
For information about the action and the opt-out process, visit shine.com.au/service/class-actions/redlands-ratepayer-class-action.
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