News

Businessmen in court over disputed house-building profits

A Coast pensioner has been refused bail after being charged with drug trafficking.
A Coast pensioner has been refused bail after being charged with drug trafficking. Rockhampton Morning Bulletin

A FAILED commercial relationship has landed a Mackay builder and a Lennox Head development administrator in court disputing a portion of the $3 million profit they made together.

Michael Arthurs and his building business M.J. Arthurs built "turn-key" house-and-land packages for Optima Homes in the Mackay area.

Shaun Davison, from Portfolio Housing, sourced 86 clients to invest in those packages and performed administration services related to them.

Mr Arthurs said he and his company were entitled to $467,908 as a debt owed or as damages for breach of agreement when Mr Davison terminated a verbal contract.

Mr Davison has filed a counterclaim seeking to recover about $1.22 million, which Mr Arthurs admits he withdrew from a trust account.

There is also disagreement about a number of incomplete or unsettled houses.

Mr Arthurs said he contracted Mr Davison's company Portfolio Housing to carry out administration services, but Mr Davison claims they were in a partnership business where he was entitled to half the profits.

In Brisbane Supreme Court last week, lawyers for Mr Arthurs argued that a three-day trial starting on March 31 would not be long enough to vent the issues, but Mr Davison was pressing for the trial to go ahead because he was facing financial hardship while assets were frozen.

A document filed in the court registry for Mr Davison said he believed Mr Arthurs was using the funds to build homes in the Mackay region on a speculative basis.

"[Mr Davison] is concerned that the Mackay region is showing signs of a significant downturn in the property market and in circumstances where judgment is entered for [Mr Davison] at a trial, [Mr Arthurs's] asset will be tied up in property that may take a significant time to sell," the document said.

Mr Arthurs, through legal documents filed in the court registry, said he would pay Mr Davison and his company Portfolio Housing a completion fee for each house, which was 50% of the profits.

This, he said, was the construction price Optima paid to M.J. Arthurs, less construction costs, consultancy fees, professional fees and administrative costs.

The case is expected to return for another mention about the proposed trial adjournment today.

Topics:  court




7 most expensive (and cutest) puppies on the Northern Rivers

Border collie puppies for sale in the Rosebank area.

How much would you be willing to pay for a gorgeous pooch?

New plans for former motorbike shop in South Lismore

FRONT: Plans for the South Lismore motorbike business to be changed to a gym.

Development application will give the site a new purpose

Lismore mayoral candidates scored by anti-fluoride group

Fluoride has been a divisive issue in the community.

Will a new Lismore council mean a change of heart on fluoride?

Latest deals and offers

Mexican band takes aim at Trump

Disguised as unhinged narcotraficantes, the Mexican-American agitators of BRUJERIA captured the mood of the citys minorities with the bands infamous and widely banned 1993 debut, Matando Geros (Killing White People), quickly becoming the Spanish-language counterparts to early grindcore masters TERRORIZER and NAPALM DEATH.  Photo Contributed

'Satanic drug lord' band challenges Trump

Willy Wonka star, Gene Wilder dead at 83

A still of Gene Wilder in the 1971 film Willy Wonka and the Chocolate Factory

Social media has already lit up with tributes to the late actor.

Falls tickets go on sale

Cold War Kids wow audiences at Falls Festival in Byron Bay despite the soaring tempratures and humidity. Photo Marc Stapelberg / The Northern Star

General sale starts at 9am

Gladstone couple's spontaneous Gympie Muster wedding

Craig Oglesby and Brenda Strong celebrate their wedding at the Gympie Muster with punters in front of the Main Stage.

The Gympie Music Muster was the perfect place for a wedding.

Australian Survivor's Peter: I'm no quitter

Australian Survivor contestant Peter Fiegehen.

ILLNESS forces castaway's early exit from Samoa.

Diva's sister on soliciting charge

FILE - In this May 14, 2016 file photo, Mariah Carey attends the 27th Annual GLAAD Media Awards, in New York. Carey will appear on the Oct. 5 episode of the Fox series, \"Empire,\" the network confirmed Monday at a TV critics bi-annual press tour. (Photo by Charles Sykes/Invision/AP, File)

Mariah Carey's sister has been arrested on charges of prostitution.

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

Investors eye Gladstone's $4m island with resort approval

UP FOR SALE: Turtle Island is on the market.

CHINESE and Sydney investors flag interest in Gladstone island.

Take a sneak peek at this $19m Whitsunday mansion

Mandalay House features a private helipad.

Mandalay is currently on the market with an asking price of $19m