Delegat's trust fails luxury yacht costs bid

Jim Delegat. Photo / Greg Bowker

A trust linked to the executive chairman of a listed winemaker has notched up another loss in its attempt to recoup funds over an unfinished luxury yacht - this time over court costs.

The trust linked to Jim Delegat - of the winemaker Delegat Group - in late 2009 commissioned the now failed luxury boat builder Salthouse Marine to construct a Salthouse 68 yacht.

This trust paid $1.23 million for the project to a subsidiary of Salthouse Marine, which was placed in receivership in February 2010. This subsidiary was unable to complete the yacht and the trust was left out of pocket with an unfinished hull. The trust set up its own company and completed the boat.

Salthouse Marine was directed by Julie Salthouse and "distinguished naval architect" Christopher Norman.

The trust in 2012 sued Norman and alleged he allowed Salthouse Marine and its subsidiary to trade recklessly and failed to exercise the degree of care, diligence and skill a reasonable director would. It also alleged Norman engaged in "misleading and deceptive" conduct in breach of the Fair Trading Act.

The plaintiffs in the case sought orders that Norman compensate the subsidiary and Salthouse Marine so all creditors could be paid and sought damages of $1.08 million from the naval architect.

Norman, after being served with the action, sought and got the High Court's permission to issue a notice against Julie Salthouse on the basis that if he was found liable, she would have to contribute.

However, Justice Mark Woolford found that Norman had not breached any of his duties and that the claim against him was not proven.

About 10 months later - in October last year - Delegat's trust made a bid to have to the proceedings reheard but this was dismissed.

In June this year, Julie Salthouse applied for legal costs. The plaintiffs accepted that costs should be awarded, however, they disputed the amount.

Salthouse submitted that costs of $36,341 should be awarded to her for the main 2012 action but the plaintiffs submitted that she had unnecessarily contributed to the expense of the proceedings by changing her position shortly before the trial.

Justice Woolford said the costs requested by Salthouse were reasonable in the circumstances.

He also awarded Salthouse close to $16,500 in costs for the 2013 rehearing application, the amount of which was not disputed.