Sydney Sinking Homes Settlement, Why a Judge Is Being Asked to Reject the A$18 Million Glenmore Park Deal

A proposed A$18 million settlement of a western Sydney homeowners’ class action is facing a fresh challenge. According to an October 13, 2026 report, a court-appointed contradictor is urging the judge not to approve the deal because claims left out of it may not have been adequately investigated.

The dispute concerns the Mulgoa Rise residential development in Glenmore Park, New South Wales, Australia. Homeowners allege parts of the land were unsuitable for ordinary residential construction. The defendants are the developer, Mulpha Norwest Pty Ltd, and Penrith City Council, and both have denied wrongdoing in public statements.

This is not a new lawsuit and not an open claims program. It is a challenge to whether a court should approve a settlement already reached. The settlement is not confirmed as approved, no official claim form or deadline has been verified, and this is an Australian case with no claim process for U.S. residents.

Quick Facts: Glenmore Park Sinking Homes Class Action

Detail	Information
Case	Representative proceeding brought by Raymond Joseph William King (reported as King v Mulpha Norwest Pty Ltd & Penrith City Council)
Court	Federal Court of Australia (as reported in company disclosures). Case number not independently verified
Location	Mulgoa Rise, Glenmore Park, western Sydney, NSW, Australia
Defendants	Mulpha Norwest Pty Ltd (developer) and Penrith City Council (approving authority)
Proceedings commenced	December 23, 2024
Claims alleged	Negligence and misleading or deceptive conduct
Proposed settlement	A$18 million (Australian dollars), as reported by Lawyerly. Subject to court approval
Litigation funder / law firm	Omni Bridgeway (funder); Mayweathers (conducting the case), per the funder’s class action page
Official information page	https://portal.omnibridgeway.com/cases/register/glenmore-park-class-action-overview (funder’s page, not a court-approved settlement website)
Claim form	None verified
Claim / registration deadline	None verified
Settlement status	Approval contested. Final approval not verified
Trial date if not settled	Hearing reported as set from May 3, 2027

The A$18 million figure is the proposed settlement fund, not a payment to each homeowner.

Why the Settlement Is Being Challenged

A contradictor is an independent lawyer appointed by the court to test a proposed settlement, usually where group members’ interests may not be fully protected by the parties who negotiated it. The October 13 report says the contradictor is arguing that excluded claims have not been adequately investigated. A separate September report reportedly said a contradictor was appointed amid concern that legal costs and funding deductions could leave group members with only about 20% of the fund. Earlier coverage reportedly said some homeowners would receive no payout.

These reports come from Lawyerly, which is paywalled, and the underlying court submissions were not reviewed. The figures and claims above are reported, not verified.

A challenge does not mean the settlement will fail. The judge can approve it, reject it, or ask for more evidence or changes.

What the Homeowners Allege

The claim, first filed in December 2024 and amended on June 5, 2026, is brought by a Glenmore Park owner for himself and a group of current and former owners in the Mulgoa Rise area. It alleges parts of the land were not suitable for homes built on the standard “deemed to comply” slab design, or for homes other than those built with piles reaching natural ground or bedrock. The claim is based on negligence and misleading or deceptive conduct. The developer reportedly tried and failed to have parts of the case struck out. The group is reported to include later purchasers, not only first buyers.

These are allegations, not findings. No court has found the defendants responsible for any property.

Laws and Rules That Govern This Kind of Case

This section is general information. The claim details should be checked against the court file.

Federal Court group proceedings

In the Federal Court of Australia, class actions are called representative proceedings under Part IVA of the Federal Court of Australia Act 1976 (Cth). The key rules include:

• Opt-out system (s 33J). Group members are included unless they opt out by the date the court sets. Opting out means giving up any share of a settlement but keeping the right to sue separately.
• Settlement approval (s 33V). A settlement or discontinuance cannot take effect without court approval. The court asks whether the settlement is fair and reasonable and in the interests of group members as a whole, not just those who negotiated it.
• Notice (s 33X). Group members must be given notice of a proposed settlement and a chance to object.
• Binding effect (s 33ZB). An approved settlement or judgment binds group members who did not opt out.
• Orders to do justice (s 33ZF). The court has broad power to make orders needed to ensure justice is done.

Funding commissions and legal costs

Australian courts review the legal fees and litigation funder commission that come out of a settlement fund. Litigation funders typically cover costs and adverse costs risk in return for a commission. The High Court of Australia addressed court-ordered funder commissions in Kain v R&B Investments Pty Ltd (2025). Its effect on a particular settlement should be confirmed by a lawyer.

Substantive claims

• Negligence under the common law and the Civil Liability Act 2002 (NSW), which also contains rules on the liability of public authorities such as councils.
• Misleading or deceptive conduct under section 18 of the Australian Consumer Law, found in Schedule 2 of the Competition and Consumer Act 2010 (Cth), with compensation available under s 236.
• Planning and development law, including the Environmental Planning and Assessment Act 1979 (NSW), which governs council approvals and the conduct of consent authorities.
• Home Building Act 1989 (NSW) statutory warranties may apply to residential building work, but typically concern builders, so their relevance here is unconfirmed.

Time limits

Time limits depend on the cause of action. In NSW, the Limitation Act 1969 generally allows six years for many property damage and economic loss claims (starting from when the cause of action arises, subject to extensions), and Australian Consumer Law claims for damages generally have a six-year limit under s 236(2). A homeowner who thinks they are excluded or under-compensated should get advice promptly.

Why Some Homeowners May Receive Little or Nothing

In a class action settlement, a gross figure is reduced by legal costs, funder commission and administration costs, and what remains is shared under a distribution scheme. The scheme decides which properties and losses qualify and how much each receives. If a homeowner’s claim falls outside the scheme’s categories, they may receive nothing, which is the type of concern reportedly being raised here. Actual figures cannot be stated until the settlement deed and distribution scheme are reviewed.

What Happens If the Judge Rejects the Settlement?

If approval is refused, the parties may renegotiate (for example, lower fees or a broader scheme), amend the settlement, or continue towards the hearing reported to start on May 3, 2027. If the judge approves, the settlement will bind group members who did not opt out, and a distribution process will follow. Rejection would not itself decide who is at fault.

What Glenmore Park Homeowners Should Do Now

1. Keep records: purchase contracts, engineering and inspection reports, repair invoices, photos and letters about structural damage.
2. Check the official notice to confirm whether your property and ownership period are in the group.
3. Read the distribution scheme to see which losses are recognised (repairs, remediation, loss of value).
4. Check deadlines for objecting or opting out in the court-approved notice. Do not rely on a news report date.
5. Get independent advice if you believe your claim is excluded, including whether to object.
6. Watch for scams. Do not pay anyone to “register” for this settlement.

Key Dates

Date	Event
December 23, 2024	Proceedings commenced
February 2025	Developer reported to be considering a strike-out application and cross-claims against subcontractors
June 5, 2026	Amended statement of claim
June 22, 2026	Mulpha International public announcement of the amended claim
July-September 2026	Reports on the A$18M settlement and the appointment of a contradictor
October 13, 2026	Report that the contradictor urges the judge not to approve the deal
Not verified	Approval decision
May 3, 2027	Reported start of hearing if the case is not resolved

Frequently Asked Questions

Has the A$18 million settlement been approved?

Not verified. The latest report says approval is being challenged.

Will every homeowner get paid?

Not necessarily. Earlier reports say some group members would get nothing. The distribution scheme decides eligibility and amounts.

What is a contradictor?

An independent lawyer appointed to help the court test whether a settlement is fair, especially where group members’ interests may not be well represented.

Is this case in the Supreme Court of New South Wales?

Company disclosures describe the proceeding as being in the Federal Court of Australia. Some other articles say the NSW Supreme Court, so confirm on the court file.

Can I file a claim form now?

No official claim form has been verified. Wait for the court-approved notice.

Can U.S. residents claim anything?

No. This is an Australian proceeding about Glenmore Park properties.

Who are the defendants?

Mulpha Norwest Pty Ltd and Penrith City Council. Both have denied the allegations.

Does the A$18 million go to homeowners in full?

No. Costs, funder commission and other deductions are typically paid first, subject to court approval.

Sources

1. Mulpha International Bhd announcements via Bursa Malaysia, reported by The Edge Malaysia (June 22-23, 2026), Business Today (June 22, 2026) and EdgeProp (June 23, 2026) – parties, filing dates, allegations, Federal Court proceedings, hearing date
2. Omni Bridgeway: Glenmore Park Class Action overview – https://portal.omnibridgeway.com/cases/register/glenmore-park-class-action-overview
3. Lawyerly (paywalled) reports dated July 9, August 12, August 18, September 4 and October 13, 2026 – settlement amount, contradictor, objections (research leads, not primary records)
4. Federal Court of Australia Act 1976 (Cth), Part IVA – https://www.legislation.gov.au
5. Competition and Consumer Act 2010 (Cth), Schedule 2 (Australian Consumer Law) – https://www.legislation.gov.au
6. NSW legislation: Civil Liability Act 2002; Limitation Act 1969; Environmental Planning and Assessment Act 1979; Home Building Act 1989 – https://legislation.nsw.gov.au
7. High Court of Australia: Kain v R&B Investments Pty Ltd (2025)

Disclaimer: This article is general information only and not legal advice. AllAboutLawyer.com is a legal information website, not a law firm. Anyone affected should consult a qualified Australian lawyer.