The ‘un-lettable’ Toorak home facing its second court case in two years

A stone’s throw from the most expensive house in Toorak stands a white Georgian-style mansion shrouded by a large leafy plane tree.

At first glance, everything seems in order. But the home in question, split down the middle into two separate residences, is divided by more than just common walls and hedges.

For the second time in a year, the owner of the home on the right has begun legal action over the property – which was previously declared “un-lettable” by Supreme Court Judge Kerri Judd – in relation to his neighbour on the left.

Bought in 2020 for $2.7 million in one of the most prized pockets of Toorak, the property has sat empty since 2023 after three lots of tenants moved in and out in quick succession due to what the court found to be “substantial and unreasonable” noise from neighbour Suzanne Sheppard.

Last year, owner and landlord Daniel Dejanovic successfully sued Sheppard, who lives on the left side of the block, and was awarded $207,774 in damages.

During the eight-day trial, Judd found Sheppard had made noise “for the purpose of annoyance” and which caused tenants to leave, resulting in Dejanovic losing rental income. This included regularly banging on the shared party wall in the middle of the night, screaming or yelling throughout the day, and playing the radio or television very loudly. The issue stemmed from complaints from Sheppard that the air-conditioning and heating units at Dejanovic’s property were too loud and disruptive.

Though she was banned from banging on the common wall, shouting and playing the radio or television at an “unreasonable volume”, Judd noted at the time that it was “very clear” Sheppard’s behaviour would continue if the property were re-let.

Now, Dejanovic is suing the former owners of the property, Joshua and Abigail Fayman, for damages, along with their lawyers SBA Law, the real estate agency that sold him the property (RT Edgar), and the individual real estate agent.

According to a writ filed in the County Court on March 17, Dejanovic claims alleged past behaviour by Sheppard towards a former occupant was not disclosed to him as material facts during the sale.

This was done “with the intention of inducing Mr Dejanovic to buy the property”, the documents prepared by Best Hooper Lawyers claim.

“Mr Dejanovic has suffered loss as a result … for reasons including that he otherwise would not have purchased the property,” the writ states.

“The loss suffered by Mr Dejanovic includes the difference between the price he paid for the property and its true value at acquisition.”

The documents claim the Faymans received a discount when they bought the property in 2018, and in 2020 it was advertised as netting rent of up to $1550 per week.

Dejanovic’s house is not currently listed for sale or rent, while Sheppard’s house is listed for sale with a price guide of $2.6 million to 2.8 million.

Sheppard, who is not listed as a defendant in the writ filed on March 17, said she would support the Faymans in the case.

“I’d be happy to come as a witness in any court matter, I’d be very happy. They don’t even have to subpoena me, just tell me when it’s on,” Sheppard said.

She told The Age she was long-frustrated by sound and vibrations caused by the neighbouring property’s air-conditioning and heating unit, and only made noise to have her neighbours cease using it after attempting to make it stop through other avenues. Sheppard said she did not learn that her response was wrong until the trial against her last year.

“I now understand that me banging on the pipes to get the tenants to turn the heating-cooling unit systems off is wrong. You’re not allowed to make a noise to stop a noise,” she said.

Sheppard denied wrongdoing against the owners who had the property before the Faymans.

When contacted by this masthead, Jeremy Fox from RT Edgar said the agency had not received a copy of the writ.

“This is the first I’ve heard of it”, Fox said.

“This sounds like it’s a dispute between two neighbours, and we’re the third party that’s getting dragged into it.”

The Faymans, SBA Legal, the individual real estate agent and Dejanovic’s lawyers were contacted by The Age multiple times for comment.

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