A dispute relating to Citation Resources, formerly chaired by Peter Landau, has continued with administrators launching a new legal action in the state's highest court.
A dispute relating to Citation Resources, which was chaired by Peter Landau, has continued with administrators chasing insurance through a new action in the Supreme Court of Western Australia.
Administrators of Entyr have sued insurance company Dual Australia, on behalf of underwriters at Lloyds, to be liable to pay over the alleged breaches of former Citation Resources directors Anthony Eastman and Brett Mitchell.
In a writ lodged in the Supreme Court of Western Australia, receivers and managers for Entyr Limited alleged insurance company Dual Australia breached its duty by denying it had an obligation to compensate the administrators.
Citation Resources went into voluntary administration in September 2016 and changed its name to Pearl Global after a restructuring and recapitalisation of the company.
Pearl Global became Entyr Limited in December 2022, but administrators were appointed to the tyre recycling business in March 2024.
Oil and gas company Citation Resources has made the headlines in the past several years, after Mr Landau, former Citation Resources chairman, was charged in 2020.
Continental Coal secretary Rosemary Flegg and Mr Landau were charged with stealing more than $2.2 million from Citation Resources.
Mr Landau has been sentenced to more than five years imprisonment over several charges last year.
Business News does not suggest Mr Eastman or Mr Mitchell were involved in the matter with Mr Landau.
In the writ, the administrators claimed Dual was liable to provide insurance for Mr Eastman and Mr Mitchell, who allegedly caused Citation loss and damage through their breaches of duty as directors.
Entyr administrators claimed Dual was to compensate it for any amount Mr Eastman and Mr Mitchell were liable to pay to Citation.
The writ said Dual agreed to pay, on behalf of each insured person, the loss arising from a claim made during the insurance period, under a policy signed in 2015.
In 2021, Citation sued Mr Eastman and Mr Mitchell in the state’s Supreme Court, alleging the pair breached their directors’ duties by failing to properly oversee the company’s bank accounts.
The administrators alleged, in the writ, that the court action was a claim covered under the 2015 policy where Dual was to provide insurance during a certain period.
Entyr administrators claimed both Mr Eastman and Mr Mitchell were insured people under the policy.
According to the writ, Dual denied it was obligated to indemnify Mr Eastman or Mr Mitchell over Citation’s claims.
Mr Mitchell resigned as director of Citation in December 2015 while Mr Eastman resigned as non-executive director in 2016.
The 2021 proceedings remain ongoing with the parties scheduled for a directions hearing later this month.
