08/07/2021 - 12:30

Caruso launches $2.2m lawsuit against MRC

08/07/2021 - 12:30

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Mineral Commodities (MRC) is facing its third lawsuit from former boss Mark Caruso, who claims he and his company Zurich Bay Holdings are owed a total of $2.2 million in entitlements.

Caruso launches $2.2m lawsuit against MRC
Mr Caruso has launched a third Supreme Court action, this time, over $2.2m in entitlements he claims he is owed. Photo: Gabriel Oliveira

Mineral Commodities (MRC) is facing its third lawsuit from former boss Mark Caruso, who claims he and his company Zurich Bay Holdings are owed a total of $2.2 million in entitlements.

Mr Caruso had worked for the mineral sands project developer for more than two decades before a breakdown in the relationship between the two parties culminated in his sacking earlier this year.

The relationship breakdown came after MRC’s board began making enquiries into what it described as a “potential related party matter” and after Mr Caruso had stepped down as executive chairman amid criminal charges.

According to a writ lodged in the Supreme Court, Mr Caruso claims he has not yet been paid for services he provided in March this year in his role as MRC’s chief executive, as well as for services he provided from June 2015 to December 2016.

He has also alleged MRC had failed to pay him annual leave, long service leave and short-term incentive bonus entitlements.

The alleged outstanding entitlements detailed in the writ indicate the company could be forced to pay Mr Caruso at least $2.2 million, as well as compensation and damages.

The writ was lodged just three days after Mr Caruso lodged his second court action against Mineral Commodities, in which he claimed MRC owed him $808,000 pursuant to a long-term incentive remuneration agreement.

Mineral Commodities has vowed to defend that action, pointing to financial statements it lodged with the Australian Securities Exchange in April which outlined an $803,000 incentive payment accrued by Mr Caruso which remained subject to a formal review by the company.

That lawsuit came just weeks after Mr Caruso took the company to court for allegedly downloading and refusing to surrender confidential information from his hard drive without permission.

According to a writ lodged in the Supreme Court on June 2, Mr Caruso and Zurich Bay Holdings alleged MRC had used and disseminated the information without his permission and had refused to comply with demands to surrender the information.

But the nature of the information allegedly obtained remains unclear, as is how it had allegedly been used by the company.

Mr Caruso sought a permanent injunction from the court that would prevent MRC from using the confidential information and would force it to surrender all hard and electronic copies, as well as pay damages and compensation.

Mineral Commodities has told Business News it would be inappropriate to comment on proceedings currently before the court.

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