Firepower Holdings Group Ltd chief executive Tim Johnston has been summonsed to appear in the Supreme Court this month after failing to pay an out-of-court settlement totalling $4 million to a company of former Firepower chief, Trevor Nairn, and to Mr Nairn’s wife.
In a separate action, the Bentley-based fuel additives manufacturer has also been summonsed to appear in the District Court, after the company failed to pay a claim of more than $288,000 awarded to Mr Nairn on July 2.
Mr Nairn’s wife, Rhonda, claimed in October 2006 that 12.5 million shares in Firepower belonging to her had disappeared following a corporate restructuring of the Firepower Group of companies in 2004 and 2005.
Mrs Nairn settled the claims against Firepower and Mr Johnston in December 2006 after it was agreed he would pay her an undisclosed amount of money and shares.
This latest dispute comes four months after Perth stockbroker, Phil Grant, began legal action in the Supreme Court against Mr Johnston, Firepower and its director Gordon Hill, claiming 10 million shares in Firepower belonging to his company, Philaton Pty Ltd, had also disappeared after the restructure.
Firepower’s legal disputes are not limited to Western Australia, with the company launching a defamation action in New South Wales against The Sydney Morning Herald in May following claims made by the newspaper about Firepower’s technology and its level of sales success.
Mr Johnston and Firepower have until July 16 to respond to the claims.
