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Toorak Property Owner Initiates Second Lawsuit Over Alleged Undisclosed Neighbor Conduct

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Daniel Dejanovic, owner of a Toorak property which a Supreme Court judge previously described as 'un-lettable,' has initiated a second legal action. The new lawsuit targets the property's former owners, their legal representatives, and a real estate agency, alleging non-disclosure of material facts concerning a neighbor's past disruptive behavior during the 2020 sale. This development follows a successful lawsuit last year against the neighbor, Suzanne Sheppard, which resulted in a damages award for Mr. Dejanovic after the court found Sheppard had made "substantial and unreasonable" noise.

New Legal Proceedings

On March 17, Daniel Dejanovic filed a writ in the County Court against Joshua and Abigail Fayman, the property's former owners; SBA Law, their legal firm; the real estate agency RT Edgar; and an individual real estate agent.

The lawsuit alleges that the defendants failed to disclose material facts regarding past disruptive behavior by neighbor Suzanne Sheppard towards a previous occupant of the property. Dejanovic claims this omission was intended to induce his purchase of the property, resulting in financial loss, including the difference between the purchase price and the property's true value at the time of acquisition.

Property Background and Previous Legal Action

Dejanovic purchased the Georgian-style mansion, which is split into two residences, for $2.7 million in 2020. The property has remained vacant since 2023, following a rapid succession of tenants who vacated due to noise from the neighboring residence, owned by Suzanne Sheppard.

Supreme Court Judge Kerri Judd previously described the property as 'un-lettable' in a related proceeding.

In 2023, Dejanovic successfully sued Sheppard, who resides in the other half of the property. Judge Judd awarded Dejanovic $207,774 in damages. The court found that Sheppard had made "substantial and unreasonable" noise "for the purpose of annoyance." Her actions included:

  • Banging on shared walls.
  • Yelling.
  • Playing loud radio or television.

The court found that these actions caused three sets of tenants to vacate Dejanovic's property quickly, resulting in lost rental income. The noise issues reportedly stemmed from Sheppard's complaints about the air-conditioning and heating units on Dejanovic's property. While Sheppard was prohibited from making such noise, the judge noted the likelihood of continued behavior if the property were re-let.

Sheppard, who is not a defendant in the current lawsuit, later stated that she understood after the previous trial that her actions, such as banging on pipes to stop perceived disruptive noise from the heating/cooling unit, were inappropriate and legally incorrect. She denied any wrongdoing against owners preceding the Faymans.

Core Allegations of Non-Disclosure

The current writ references alleged past disruptive behavior by Sheppard towards an occupant preceding Dejanovic. Documents indicate that the Faymans received a discount when they acquired the property in 2018. Additionally, the property was advertised in 2020 with a potential rental income of up to $1,550 per week.

Statements from Involved Parties

Suzanne Sheppard stated her support for the Faymans and her willingness to testify in the current case.

Jeremy Fox of RT Edgar indicated that the agency had not yet received a copy of the writ. He described the situation as "a dispute between two neighbors, and we’re the third party that’s getting dragged into it."

Attempts were made to contact the Faymans, SBA Law, the individual real estate agent, and Dejanovic's lawyers for comment.