A $42 million court action has been abandoned after the Victorian government settled a dispute with the tenants of a shuttered Docklands pier.
An agreement was reached on Monday hours before the hearing was slated to begin between state government agency Development Victoria and the tenant that operated several restaurants and function sites.
Restaurants and bars along Docklands' Central Pier were abruptly evacuated in August 2019 after the base of the pier was found to be deteriorating rapidly and posed a risk to life.
Tenants of the century-old pier precinct signalled legal action against the state government almost five years ago, claiming Development Victoria beached its obligation to maintain the structural integrity and safety of the pier.
It also claimed the agency led tenants to believe it was repairing and maintaining the pier to last until 2026.
The case was set to be heard before the Federal Court on Monday with affected businesses seeking $42 million in damages.
Tenant Central Pier Pty, also known as Atlantic Group, was a lead tenant in the case.
Atlantic Group chief executive Hatem Saleh thanked the government for working to resolve the matter.
"It's been a challenging number of years for all involved and we are now looking forward to getting on with what we do best," he said.
In a statement, a Development Victoria spokeswoman confirmed the matter was resolved but was unable to comment on the terms of the settlement, which remains confidential.
