Embattled development boss Nick Di Latte has sued his insurer over rejected cowl for a potential $6.5 million in authorized claims introduced by liquidators after Diploma Group’s collapse.
Liquidators are pursuing Mr Di Latte, his spouse Carla Di Latte, different members of the family and quite a lot of Diploma corporations within the Supreme Courtroom of Western Australia over $48 million in funds allegedly transferred whereas the builder-developer was bancrupt.
The Fremantle man was director of subsidiary Diploma Development (WA) from April 2005 till April 2016.
He’s accused of breaching his director’s duties by knowingly permitting the unlawful switch of funds whereas the WA development group was bancrupt. He denies these allegations.
The liquidators had been appointed in September 2017 after the Federal Courtroom discovered the agency traded whereas being severely and considerably bancrupt and that there was a insecurity in how the group was run.
His insurer Zurich has agreed to cowl a lot of the breach of obligation claims introduced in opposition to him by liquidators.
Nonetheless, the insurer has mentioned it is not going to cowl $6.5 million in additional claims searching for to recoup funds he paid for the sale of an condo within the Perth CBD and the development of an condo within the seaside suburb of Rockingham.
“Zurich is of the opinion that the transactions and funds had been made as a consequence of DCWA being bancrupt or unable to pay all or any of its money owed as and after they fell due,” the agency wrote in a letter despatched in Could final yr.
“Zurich subsequently considers that the Insolvency Exclusion applies to exclude legal responsibility for these claims, together with for protection prices.”
Mr Di Latte filed proceedings within the NSW registry of the Federal Courtroom final month in an effort to pressure Zurich to cowl these further claims.
“Mr Di Latte doesn’t settle for the dedication of Zurich that the brand new claims are uncovered,” he wrote in paperwork filed with the courtroom.
He’s additionally searching for orders that Zurich pay 64 per cent of protection prices for the WA Supreme Courtroom lawsuits plus his prices of the Federal Courtroom case.
