The court has ordered more than $4.5 million taken out from Marc Cardaci’s trusts to fund the legal proceedings between his widow and brother to be repaid.
The court has ordered more than $4.5 million taken out from Marc Cardaci’s trusts to fund the legal proceedings between his widow and brother to be repaid.
Marc Cardaci’s widow Mae took her former brother-in-law Philip court over the deceased CFC Group chief’s estate and control of two trusts under his name.
The Washburn Trust and Marco Cardaci Testamentary Trust were reportedly worth $40 million.
Other defendants listed in the proceedings include entities Washburn, Rectangular and Ongold Corporation.
In December 2021, the Supreme Court of Western Australia ruled that Mae Cardaci was entitled to have control over the two trusts.
A judgment delivered by Supreme Court Justice Rene Le Miere also said the funds from Washburn Trust and the Marco Cardaci Testamentary Trust should not be used to pay the defendants’ legal fees.
The breakdown of the funds to be restored to the trusts was revealed in a decision by Supreme Court of WA registrar Brendyn Nelson, published earlier this week.
The registrar’s decision shows more than $1.79 million from the Washburn Trust and about $2.2 million from Marco’s Testamentary Trust were used for legal fees, mostly paid to law firm Bennett + Co, and accountants Ernst & Young and Brentnalls.
The total amount of money to be restored to the trusts, including the accrued interest, is $4,641,031.74.
In his December 2021 judgment, Justice Le Miere said the entities Washburn and Rectangular had no authority to use trust funds to defend the proceedings.
“They defended the proceeding, by their controller Philip, in substance for his benefit rather than for the benefit of the Trust,” he said.
“Washburn and Rectangular each acted unreasonably in defending the proceeding for their removal as trustee.
“They acted in breach of trust by using trust funds to pay their costs of defending this proceeding.
“Washburn and Rectangular should restore to the trusts the trust funds used by them to pay the costs of these proceedings, together with interest, and an account should be taken for that purpose.”
Another Supreme Court hearing over costs has been scheduled for early February.
