Contractor takes Ostwald Bros to court over $175k bill
THE fallout over Ostwald Bros' financial woes continues, with a former sub-contractor taking the company and the State Government to court.
Western Downs Traffic Control has submitted a claim in the Toowoomba District Court against Ostwald Bros and the Department of Transport and Main Roads over $174,000 in alleged unpaid fees.
The Dalby-based business is one of the first unsecured creditors in Queensland to take legal action against the troubled civil construction firm, which fell into the hands of administrators PriceWaterhouseCoopers in late August.
In documents obtained by The Chronicle, solicitor Wonderley and Hall states the unpaid fees relate to construction works on the Warrego Hwy Jingi Jingi Creek, west of Dalby, for which the plaintiff provided traffic control.
"As at the date of filing of this Statement of Claim, the fee remains unpaid by the first defendant," the Statement of Claim says.
"In breach of Section 12(1) and 12(1A) of the (Subcontractors' Charges) Act, the second defendant (TMR) has failed to make satisfactory payment to the plaintiff of the sum of $174,391.15 or to otherwise pay those monies owed to the Plaintiff into Court."
The plaintiff has sought the full amount from either Ostwald Bros or TMR, along with court costs.
PWC hasn't set a date for the next creditors meeting, instead asking the Brisbane Supreme Court last month for more time so it could figure out how to save the company from catastrophe.