Family dispute over developer's $12m put to rest
A FAMILY dispute over more than $12 million has ended.
The relationship between developer Don Barclay and his nephew Bruce soured following massive investments in developments in Rockhampton and Lismore.
The saga reached its conclusion in the Brisbane Supreme Court on Monday.
The Northern New South Wales' Seaside Project and Central Queensland's Seaspray development led to the family facing a justice over claims a $7.1m loan and $5m interest went unpaid.
However, Justice Alan Wilson dismissed the case between companies Barklya and Richtech on Monday, saying Barklya's attempt to take Richtech to trial over $12m hinged on whether or not the outlay was an investment or a loan - and if the development at the heart of the fight had made enough profit to justify repayments.
He dismissed the case, saying Richtech had not shown there was a real prospect of succeeding at trial.
Justice Wilson said the paperwork showed the money did not have to be repaid until the Seaspray development was complete and making enough profit to cover the repayments.
"Richtech has an arguable case that the funds paid to it by Barklya were investment for a purpose which is not yet been completed and which are not, then, repayable now on demand," he said.
"In the alternative if, in truth, the funds are now properly categorised as a loan or, in the past, should have been, then in neither event is the loan repayable now upon demand."
Don Barclay told the court at trial that he and his late brother Ian worked on a range of projects together.
He said joint venture Richtech completed the developments and that each was a director and equal shareholders.
The brothers "informally" funded the projects using money loaned to the development company, in equal amounts.
"I do not ever recall these loans being formalised in any way by the execution of loan agreements or company minutes," Don Barclay said.
He told the court he and his brother never talked about repaying the loans and never set deadlines for repayments.
The relationship between the two families hit the rocks in 2009 after Don Barclay began work on the Seaspray residential development at Zilzie, near Rockhampton.
- APN NEWSDESK