Perth accountants in court dispute

A land developer has sued Osborne Park firm Armada Accountants and its directors over alleged breach of confidential information and fiduciary duties.

Inspeed and Virginland have lodged a writ in the Supreme Court of Western Australia naming Armada Accountants & Advisors, its managing director Tony McDowell, directors Stuart Outtrim and Troy Figliomeni, and other companies as defendants.

Australian Securities and Investments Commission documents show Inspeed and Virginland are owned by Celina Miller with Land Development director John Miller listed as the sole director of Inspeed.

In the writ obtained by Business News, the Millers have sought damages, equitable compensation, an account of profits, and a court-ordered injunction to stop Armada and Mr McDowell from disclosing confidential information.

Mr McDowell confirmed the Supreme Court matter was a contractual dispute with a developer that related to a number of property developments.

“The three individual defendants are directors of the various trustee companies that own the properties being developed,” he told Business News.

“The matter will be vigorously defended and does not relate to the professional services provided by Armada Accountants and Advisors.”

The writ said Inspeed, Virginland and Armada’s property services arm Armada Property Services signed agreements to be development managers for land in Dalyellup, Southern River, Bicton and Beeliar.

Trustee companies directed by Mr McDowell, Mr Outtrim and Mr Figliomeni were formed to be owners of project sites, of which Inspeed and Virginland were beneficiaries, according to the writ.

The Millers claimed the Armada directors and the trustee companies failed to provide financial reports and information to Inspeed and Virginland.

They further alleged that in June, Armada Accountants stopped funding Armada Property Services to continue its obligations as development manager under the agreements signed.

In the writ, Inspeed and Virginland alleged there were "defalcations" of the trust funds when the trustee companies sent payments to Armada Property Services.

Other defendants listed on the writ were companies Everyone Investments, Margaret River (WA) Property Development, Southern River Property Developments No 2, Bicton Property Development and Beeliar Property Developments.

In the writ, the defendant companies had the same registered address as Armada Accountants’ office in Osborne Park.