Marriner in new legal fight
It is another in a series of financial issues for businessman David Marriner, patriarch of the family that runs landmark live entertainment venues the Regent, Princess, Comedy and Forum theatres.
The dispute with Mr Dadon comes as the State Revenue Office is also chasing an unpaid $76,000 land tax bill for the former MTC property on Russell Street, which is next door to the historic Forum Theatre.
Documents filed in the Supreme Court allege that two companies controlled by Mr Marriner defaulted on the purchase of 10 apartments - worth $450,000 to $3.2 million each - in two high-end St Kilda Road residential towers built by Mr Dadon.
The developer is seeking financial damages of $12.4 million, interest and possession orders for the properties used as security, including the former MTC building.
The vacant property at 19-25 Russell Street - bought by Marriner company Forum Theatre Holdings for $3.4 million in 2003 - has long been mooted as a potential residential development site.
Any possession order granted to Mr Dadon is likely to be contested, with state revenue authorities last week petitioning the Supreme Court to liquidate Forum Theatre Holdings over $76,378 in unpaid land tax bills.
"There's no question we've been feuding with the State Revenue Office - we have been for years over the amount of tax they charge - but that bill has been paid. It's been settled," Mr Marriner said.
Control of the Forum Theatre itself is not in doubt, with ownership transferred in 2011 to a separate company, Forum Theatre Investments, which is ultimately owned by Marriner family members Deven, Jason and Kayely.
While Mr Marriner declined to comment on the lawsuit, documents filed by his solicitors argue that Mr Dadon's claims are "deceptive and misleading".
The defence contends a "security swap" agreement was in place that settled any debt by transferring some Queensland properties to Mr Dadon in the event of a default.
The dispute has ended the friendship between Mr Marriner and Mr Dadon, who had also bought into Mr Marriner's failed Laguna Whitsundays resort project.
Mr Dadon, who is overseas, could not be reached for comment.
cvedelago@fairfaxmedia.com.au
Twitter: @chrisvedelago
Frequently Asked Questions about this Article…
The dispute centres on an allegedly failed $13.5 million luxury property deal. Documents filed in the Supreme Court say two Marriner-controlled companies defaulted on contracts to buy 10 apartments built by Albert Dadon, and Dadon is seeking financial damages, interest and possession orders for properties used as security.
Key assets named in the court papers include 10 apartments in high-end St Kilda Road residential towers built by Dadon and the vacant former Melbourne Theatre Company (MTC) building at 19–25 Russell Street, which was bought by Forum Theatre Holdings in 2003 and has been discussed as a potential residential development site.
The developer is seeking about $12.4 million in damages plus interest, and the dispute relates to an alleged failed $13.5 million deal. Separately, the State Revenue Office is petitioning the court over roughly $76,378 in unpaid land tax tied to the former MTC property.
Albert Dadon is seeking possession orders over properties used as security, including the former MTC building. Any possession order would, however, be likely contested in court according to the reporting.
No. The Forum Theatre’s control is reported as not in doubt. Ownership of the Forum Theatre was transferred in 2011 to a separate entity, Forum Theatre Investments, which is ultimately owned by Marriner family members Deven, Jason and Kayely.
Marriner’s solicitors argue Dadon’s claims are "deceptive and misleading". Their defence also says a "security swap" agreement was in place that would have settled any debt by transferring some Queensland properties to Dadon if there was a default.
David Marriner has said the longstanding feud with the State Revenue Office over tax charges has been settled and that the land tax bill has been paid, despite the SRO petitioning the Supreme Court to liquidate Forum Theatre Holdings over the unpaid amount.
Everyday investors may want to watch the case because it involves high-value property assets used as loan security, significant claimed damages, and government action over unpaid land tax. Outcomes could affect ownership or control of development sites and illustrate legal and tax risks in property-backed investments.
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