Palmer in court over $12 million fund
TWO companies have taken mining tycoon Clive Palmer to court over a $12 million fund called Port Palmer Operations.
Sino Iron and Korean Steel have accused Mr Palmer and Cosmo Developments of misappropriating funds from an administrative fund.
The two companies and Mr Palmer's Mineralogy are part of a deed relating to the maintenance of development and maintenance of facilities to be built near Cape Preston in Western Australia.
Insurance costs, management fees and stationery made up part of the list Mineralogy could use the fund for, according to a Supreme Court judgment handed down on Monday.
Sino Iron and Korean Steel state the account was opened in 2010 and in 2013 the balance was $12 million.
They have accused Mr Palmer of drawing a $10 million cheque for Cosmo Developments in August 2013.
Then in September last year he allegedly drew a $2 million cheque for Media Circus Network.
Sino Iron and Korean Steel allege that each of the payments was made in breach of trust by Mineralogy.
Mr Palmer and Cosmo Developments' lawyers argued it was a "feigned issue" and the real purpose of the court case was "showing up" the defendants.
They have argued it should be dismissed or stayed.
But Justice David Jackson said in the judgment he did not believe embarrassing Mr Palmer and Cosmo Developments was Sino Iron and Korean Steel's predominant purpose.
The application to stay was dismissed and the costs of the application will be reserved until November 26.
- APN NEWSDESK
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