Liquidator seeks ruling against NBG boss
The legal stoush centres on the control of intellectual property formerly owned by NBG, including trademarks and the designs and plans of 200 homes the company licenses and sells to home buyers and builders.
The Melbourne-based firm was voluntarily wound up early last year with debts put at more than $22.3 million. It is estimated NBG generated $18.15 million in revenue and held assets worth $41.78 million in the year to March 21 last year.
Court documents alleged that Mr Suckling, as sole director of NBG, transferred the rights to all of the company's current and future intellectual property at no cost to the Suckling-controlled National Builders Group IP Holdings in April 2009. The rights were immediately licensed back, but on the condition the agreement could be cancelled if NBG ever went into administration.
Shortly before NBG's collapse, all the furniture, fixtures and fittings in its display homes and offices were sold to developer Mega Homes, a company allegedly associated with Mr Suckling. A bid to also sell more than 20 properties to Mega Homes for $8.29 million did not proceed.
Liquidator Hamilton Murphy is petitioning the Supreme Court to declare NBG the owner of the intellectual property and order an injunction preventing Mr Suckling or IP Holdings from using the materials, as well as to pay damages.
"The liquidator suspects that those building designs and plans were created by Suckling as an employee of NBG and the intellectual property in the plans and building designs was owned by NBG," Hamilton Murphy director Richard Rohrt claims in court documents.
"The effect of Suckling causing NBG to enter each of these documents was to, in effect, purport to strip NBG of its intellectual property in its trademarks and copyrights, to transfer the said trademarks and copyrights to IP Holdings, a company which he had control of and the beneficial interest in, for no consideration."
Mr Rohrt alleges that Mr Suckling's conduct was a "breach of his statutory and common law duties" and the transfers amounted to "unreasonable director-related transactions in that they were made to or for the benefit of the director or a close associate of the director".
Hamilton Murphy has asked the court for an expedited hearing following claims that Mr Suckling and IP Holdings may be attempting to claim license fees owed by builders before the collapse and are continuing to sell the home designs and plans to builders and customers.
Mr Suckling, who has reportedly claimed the intellectual property is his personal property, could not be reached for comment.
Frequently Asked Questions about this Article…
The dispute centres on control of NBG’s intellectual property — including trademarks and the designs and plans for about 200 homes. The liquidator alleges those rights were transferred to a Suckling-controlled vehicle and is asking the Supreme Court to declare NBG the true owner and to stop others using or selling the materials.
Barry Suckling is the founder and former sole director of National Builders Group. Court documents allege he transferred NBG’s current and future intellectual property to National Builders Group IP Holdings (a company he controlled) in April 2009 at no cost, then licensed the rights back with a clause allowing cancellation if NBG entered administration. The liquidator says those transfers breached his duties and benefited a close associate.
The disputed assets include trademarks, copyrights, and the designs and plans of about 200 homes that NBG licensed and sold to builders and customers. Ownership affects who can lawfully sell or license those plans, who can collect licence fees, and whether customers and builders retain rights they thought they had.
Hamilton Murphy is petitioning the court to declare that NBG owns the intellectual property, to grant an injunction preventing Mr Suckling or IP Holdings from using or selling the materials, and to order payment of damages. The liquidator has also sought an expedited hearing because of concerns about ongoing licence claims and sales.
NBG was voluntarily wound up early last year. The company’s debts were put at more than $22.3 million. For the year to 21 March last year, NBG reportedly generated $18.15 million in revenue and held assets worth $41.78 million.
Shortly before NBG’s collapse, the furniture, fixtures and fittings in its display homes and offices were sold to developer Mega Homes, a company the article alleges is associated with Mr Suckling. A proposed sale of more than 20 properties to Mega Homes for $8.29 million did not proceed.
According to the article, Mr Suckling has reportedly claimed the intellectual property is his personal property. The liquidator suspects the building designs and plans were created by Suckling while he was an NBG employee and therefore owned by NBG. The liquidator is concerned Mr Suckling or IP Holdings may try to collect licence fees or continue selling the designs after the collapse.
Investors should watch for the expedited Supreme Court hearing, any injunctions or rulings declaring ownership of the intellectual property, orders for damages, and public updates about licence fees or continued sales of the home designs. Those outcomes will affect creditors, builders and customers connected to NBG’s products and may influence recoveries from the liquidation.
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