Geoffrey Edelsten is embroiled in another legal stoush over a business deal gone bad, suing a buyer who backed out of an $830,000 commercial property transaction.
But the defendant, Jacques Daggian, has hit back with allegations of deceptive and misleading conduct by the real estate agent who worked for the disgraced former doctor, claiming he was misled about the characteristics of the property.
Norman South Pty Ltd, a company owned by Mr Edelsten, sold the office warehouse in Glen Huntly to Mr Daggian on April 10, 2012. But Mr Daggian cancelled the $83,000 deposit cheque and rescinded the contract three days later.
Norman South is claiming $173,733.83 for the deposit, costs, rates, taxes, insurance, bank interest, and fees and charges, according to Supreme Court documents.
But Mr Daggian alleges the estate agent, Tim Blackett of Kay & Burton, engaged in misleading and deceptive conduct by making "representations and associated silences" on behalf of Norman South.
Despite its former role as an office/warehouse, the property is zoned Residential 1.
"Blackett said words to the effect that the land would be suitable for immediate commercial occupation and/or was silent as to whether the land was not in fact approved for, or presently able to be used for commercial occupants and/or had pre-existing rights of commercial use," Mr Daggian said.
A bid at mediation failed in July and a directions hearing is now scheduled for mid-September.
Last year, Norman South was embroiled in a legal stoush over a $5000 loan Mr Edelsten had extended to a woman he met on the website sugardaddyforme.com.