Allegations of Power Misuse: Strata Management Firm Faces Pivotal Lawsuit
January 30, 2026 — 7:14 PM
Residents of some of the most recognizable high-rise buildings in the city are gearing up to initiate legal proceedings against one of Victoria's foremost strata management companies. They claim that the firm has engaged in a systematic and well-organized effort to overcharge residents and aggressively pursue debt collection.
A legal writ, which has been reviewed by The Age, is set to be filed in the Supreme Court of Victoria targeting Bluestone OCM. This lawsuit accuses the company of deceitful practices, unconscionable actions, and violations of the Owners Corporations Act.
Led by Wilbur Tong, who is representing his family's apartment located in the towering 47-storey Marina Tower in Docklands, this lawsuit seeks justice not only for his family but for all lot owners within any Victorian strata scheme managed by Bluestone since 2020. They aim to address misleading fee notifications that were issued on an opt-out basis, potentially affecting many.
Bluestone claims to oversee more than 45 apartment complexes, including the impressive 100-storey Australia 108 in Southbank and the well-known Premier Tower in the central business district, often referred to as the "Beyoncé Building".
The legal complaint names three parties: Bluestone OCM Pty Ltd, along with the two owners corporations pertaining to the Marina Tower.
Tong's family faced significant challenges during the COVID-19 pandemic, leading to their Docklands unit being unoccupied for approximately 18 months due to tenant-related damages. In an effort to rectify the situation, Tong personally invested $25,000 into repairs and made attempts to catch up on their mortgage obligations. However, during this time, they fell behind on paying the owners corporation levies.
From late 2022 through mid-2024, Tong asserts that his family remitted $24,000 in levies to get back on track. Yet, he alleges that Bluestone continued to press them for what he believes to be an inflated debt of $8,000.
According to the writ, Tong’s family received a statement at the end of November 2024 stating they owed over $13,400, despite Tong’s assertion that no levies were overdue at that moment. Upon reviewing the financial statements, he discovered that a significant portion of that amount consisted of legal fees and "recovery" charges. When he began to question the unclear and seemingly erroneous financial reporting, Tong claims the family was suddenly hit with a "special fee" of around $5,500, interpreted as a trust deposit for Bluestone’s lawyers to initiate future legal actions against them.
Tong firmly believes that their situation exemplifies a blatant misuse of power.
"The typical owner or resident likely lacks the understanding needed to navigate the financial documentation and recognize their legal rights," Tong remarked.
Aarahnan Raguragavan, the principal lawyer at Potentia Litigation, emphasized that this legal action is designed to combat a pervasive lack of transparency in the industry. He suspects that many other apartment owners might have also faced unjust levies and charges.
"It’s a highly organized operation that the average lot owner may overlook," he noted. "The management culture surrounding apartment buildings has been manipulated, creating a scenario where accountability seems absent."
In response to inquiries from The Age, Bluestone categorically denied any wrongdoing, asserting that they operate under ethical, transparent, and service-oriented principles.
"We uphold rigorous policies and oversight mechanisms, which are routinely evaluated, ensuring fair, legal, and suitable practices for the communities we serve," the company stated.
As a prominent player in the strata management sector, Bluestone manages numerous buildings across both urban and suburban areas.
This class action lawsuit emerges amid growing scrutiny of strata and owners corporations regulations within Victoria, particularly concerning excessive administrative and debt recovery fees deemed unlawful by VCAT.
With the current Labor government pushing for a greater number of Victorians to reside in strata-managed units, Minister for Consumer Affairs Nick Staikos initiated an independent review of existing strata laws last year. An expert panel recently delivered its findings and suggestions to the minister, addressing various issues, including unethical management practices, undisclosed commissions, support for owners facing financial difficulties in fee payments, and the contentious requirement of unanimous agreement for the collective sale of strata properties.
The panel also assessed the efficacy of short-stay accommodation regulations and explored avenues to modernize voting systems within these frameworks.
Despite repeated requests for updates regarding the review, Staikos’ office informed The Age that the minister is currently evaluating the expert panel’s recommendations and will provide feedback "in due course." A representative stated that the findings of the review would be made public simultaneously with the government's own response, although no specific timeline was provided.
"One in four Victorians resides in a property managed by an owners corporation — we are committed to ensuring they receive fair treatment and protection," affirmed a spokesperson for the minister.
Potentia Litigation is actively seeking to connect with other affected property owners in Victoria who have been under the management of Bluestone OCM prior to formally filing the legal action by late February.
