Pratt siblings sue Alex Waislitz over $1.147m in trust payments

The scrap centres on decisions that were allegedly made at a 2017 board meeting for Waislitz-controlled company Jamahjo.

The claim alleges that at the meeting – held at Thorney’s offices at 55 Collins Street – Pratt and Waislitz were named as directors of Jamahjo and agreed for 100 per cent of the proceeds of the Halex trust for the 2017 financial year to be directed to Waislitz.

However, Pratt claims she did not attend the meeting and did not participate in the resolutions.

She alleges that minutes of the meeting were signed by Waislitz as being “true and correct” when they were not accurate.

“The 29 June 2017 Minutes to the knowledge of Alexander Waislitz falsely represented that Heloise Pratt attended a Board Meeting of Jamahjo on 29 June 2017; and Jamahjo had exercised its power under … the Halex Family Trust Deed to appoint income, when it had not,” the claim alleges.

“Alexander Waislitz has wrongfully taken it upon himself to act as the trustee of the Halex Family Trust with respect to its net income for the Accounting Period ending 30 June 2017, thereby making himself trustee de son tort of the Halex Family Trust, such that in breach of trust he has wrongfully dealt with the net income of the Halex Family Trust for the Accounting Period ending 30 June 2017.”

Under Australian law, civil claims have to be filed within six years of the alleged event taking place, unless the claimant can prove that fraud or a mistake has taken place.

The claim adds that Waislitz is liable for “wilful default” of overseeing the trust and should pay equitable compensation.

“Alexander Waislitz knew that signing minutes falsely represented that a trust power had been exercised and that to direct the company secretary to give effect to that ineffective exercise of power would bring about a breach of trust, which in fact is what was brought about by the payment, application or setting aside of trust income in favour of [Waislitz Charitable Corporation] as trustee of the Foundation,” the claim alleges.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.