Tycoon Sues Developers After Luxury Villas Collapse
The People’s Court of District 1, Vietnam, recently held a hearing regarding a non-contractual damages lawsuit filed by 80-year-old tycoon Tran Thi Toan. She is suing Elegance Real Estate Investment Company, the investor in the Ba Son Central Complex project, and the project developer, Masterise Real Estate Development, over severe structural damage to her luxury properties.
According to Vn Express, Toan, the founder and manager of Toan Tharg Co. Ltd.—a company that owns white stone mines and luxury hotels—gained notoriety in 2017 when she purchased six adjacent villas in the Vinhomes Golden River Ba Son project. This elite area is currently valued at trillions of dong, approximately US$38.5 million.
The misfortune began in 2020 when Elegance commenced construction on the Ba Son Central Complex skyscraper, located directly adjacent to her villas. “The construction of the project caused these luxury villas to crack and subside,” stated Toan. “This damage has prevented me from fulfilling signed lease agreements, leaving four villas vacant and abandoned.”
As a result of the incident, the tycoon is seeking US$150,000 in damages for building repairs and US$1.58 million for lost rental income. Conversely, official representatives for Elegance have strongly rejected all claims, arguing they have no contractual agreement with Toan. The company alleges the damage resulted from natural factors, as the villas are built on soft soil, and has requested the court dismiss evidence regarding rental income, which they claim was obtained unlawfully.
Meanwhile, Masterise, the co-defendant, stated they have no involvement in the damage and formally requested the court to discharge them from all stages of the trial.
Court Ruling and Rejection of Rental Claims
Toan previously rejected findings from the assessment firm Saigon Construction Inspection JSC regarding the cause of the collapse and requested a trial postponement to submit findings from an independent assessor of her choice.
Nevertheless, the panel of judges ultimately decided to partially grant her lawsuit, ordering Elegance to cover repair costs amounting to US$65,384. Based on pre-construction survey records, the row of villas already possessed initial damage, including hairline cracks in perimeter walls, cracked fence pillars, and subsidence in certain areas due to the soft soil characteristics.
However, the court found that groundwater pumping and the deployment of heavy machinery from the project accelerated the land subsidence in the area. “The damage to villas 16 and 17 primarily stems from the impact of the Ba Son Central Complex construction,” the court explained.
In contrast, damage to villas 14, 15, 18, and 19 was attributed solely to the natural subsidence of the building infrastructure and the surrounding area. The court also cleared Masterise of responsibility, noting their role was strictly as a developer rather than a project investor.
While the project’s construction contractor could potentially be held liable alongside Elegance, Toan did not sue the contractor, meaning the court has granted her the right to file a separate civil case in the future. Regarding the substantial US$1.58 million claim for lost rental income, the court rejected it outright, ruling that the plaintiff failed to prove actual losses or a causal link between the physical property damage and the termination of tenant contracts.