Embattled development boss Nick Di Latte has sued his insurer over rejected cowl for a attainable $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 a lot of Diploma corporations within the Supreme Court of Western Australia over $48 million in funds allegedly transferred whereas the builder-developer was bancrupt.
The Fremantle man was director of subsidiary Diploma Construction (WA) from April 2005 till April 2016.
He is 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 Court discovered the agency traded whereas being severely and considerably bancrupt and that there was insecurity in how the group was run.
His insurer Zurich has agreed to cowl many of the breach of responsibility claims introduced in opposition to him by liquidators.
However, the insurer has stated it won’t 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 payments were made as a consequence of DCWA being insolvent or unable to pay all or any of its debts as and when they fell due,” the agency wrote in a letter despatched in May final yr.
“Zurich therefore considers that the Insolvency Exclusion applies to exclude liability for those claims, including for defence costs.”
Mr Di Latte filed proceedings within the NSW registry of the Federal Court final month in an effort to drive Zurich to cowl these further claims.
“Mr Di Latte does not accept the determination of Zurich that the new claims are uncovered,” he wrote in paperwork filed with the courtroom.
He can also be searching for orders that Zurich pay 64 per cent of defence prices for the WA Supreme Court lawsuits plus his prices of the Federal Court case.
