New claims surface in Cardaci feud

The widow of CFC Group chief Marc Cardaci has launched another legal action, the latest in an ongoing dispute relating to the estate of her late husband.

The writ was filed in the Supreme Court on April 6 on behalf of Mae Cardaci in her capacity as trustee of the Washburn Trust, the estate of Marc Cardaci.

Marc Cardaci had been spearheading CFC Group of businesses for seven years before his passing, a company co-founded by his father in 1968.

The pair had been married just over three years when he lost his battle with cancer in November 2015.

Companies Rectangular and Washburn, controlled by Marc’s brother Philip Cardaci, were once trustees of the Marc Cardaci Testamentary Trust and the Washburn Trust, reportedly valued at $40 million in total.

However, Ms Cardarci was made trustee of the estate in 2021 replacing her brother-in-law following a four-year-long court battle.

In the latest instalment, Ms Cardaci has claimed that Mr Cardaci breached his duties in 2017 by selling Washburn Pty Ltd’s share in Contura Mining Pty Ltd to Leone Family Holdings Pty Ltd, the ultimate holding company of CFC Group.

However, a CFC Group spokesperson has refuted the claims that there had been a breach over the alleged transfer of shares.

"The topic of the Leone Family Holdings shareholder agreement was dealt with extensively during the recent Court of Appeal proceedings, which is awaiting delivery of judgment," the spokesperson said.

"Leone Family Holdings was created as a new ultimate holding company of Contura Mining in 2017 to isolate risk and for asset protection for the benefit of all shareholders, including the Washburn Trust. That restructure did not change the ultimate ownership of the group.

"The Leone Family shareholder agreement was simply a replication of the pre-existing Contura Mining shareholder agreement, noting the Contura Mining agreement was developed by the late Marc Cardaci as then trustee of the Washburn Trust."

According to the writ, Ms Cardaci alleges 250,000 shares in Leone Family Holdings were issued to Philip in 2017 and to be held in a bare trust for Washburn as trustee of the Washburn Trust.

Contura Mining is a holding company with subsidiaries including Centurion and C.F.C Holdings, the main CFC Group businesses operating in logistics and distribution.

According to the writ, Ms Cardaci alleges the share sale agreement was in breach of trust and is seeking an injunction to have the shares transferred to her.

Ms Cardaci is also seeking compensation and other costs.

The new legal action comes after a recent ruling on costs associated with the $4.6 million used to fund legal proceedings to be repaid to the late Marc Cardaci’s trusts.

Ms Cardaci has also asked for her legal costs to be payable by not only the companies but also by Mr Cardaci, who was not a party to those proceedings.

The CFC Group of businesses has grown significantly over the past five decades, ranking in Business News' Data & Insights database as WA's 10^th largest private company, with revenue of $926.7 million in FY22.