In December 2022, Surf Ltd received a claim from one of its customers commencing a lawsuit alleging faults in the construction of a bridge in a housing estate. This lawsuit amounts to a total of $2.5 million in repair costs as at the end of the financial year. As at 20 July 2023 the company's solicitors estimated that about $2 million of the total lawsuit was legitimate and the solicitors believed that there was a high likelihood (i.e. probable) that Surf will need carry out repairs costing $2 million. The remaining $0.5 million of the claim is deemed to be unsubstantiated, thus Surf's solicitors believed that there was a low likelihood (i.e. remote) that the company will need incur these costs. The final court hearing when this lawsuit will be decided is scheduled to 01 August 2023.
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