The owners of Geelong's prominent Market Square shopping centre are embroiled in a bitter Supreme Court battle over the multimillion-dollar estate of their late mother, with accusations of secret deals and breached agreements flying between siblings.
A Family Fortune in Dispute
At the heart of the legal fight is the estate of Lina Barbara Di Donato, who passed away in October 2020. Her will left her entire estate, valued at approximately $5.6 million, to be divided equally among her four children: Frank, Robert, Rita, and Anna. The estate's significant assets include the family's long-held ownership stake in the Market Square shopping centre on Malop Street, a key retail hub in central Geelong.
However, the path to dividing this wealth has been fraught with conflict. The dispute centres on a family trust established decades ago, which holds the shopping centre investment. While the children are equal beneficiaries of this trust, they are not the trustees; that role falls to a corporate entity, Donwil Pty Ltd.
Allegations of a Secret Deal and Broken Promises
Two of the siblings, Frank Di Donato and Rita Firenze, have taken their brother Robert Di Donato and sister Anna O'Brien to the Supreme Court of Victoria. Their claim alleges that Robert and Anna entered into a secret agreement to sell the Market Square property without Frank and Rita's knowledge or consent.
According to court documents, Frank and Rita assert that all four siblings had previously agreed to a "gentlemen's agreement" in 2018. This pact supposedly stipulated that the Market Square asset would not be sold unless all four beneficiaries unanimously agreed. They claim this agreement was intended to preserve the family's legacy asset for future generations.
The plaintiffs argue that Robert and Anna's alleged actions in pursuing a sale constitute a breach of fiduciary duty and the earlier family agreement. They are seeking court orders to prevent any sale of the shopping centre that is not approved by all four siblings.
A Complex Web of Trusts and Control
The defence, filed by Robert and Anna, paints a different picture. They deny the existence of any binding 2018 agreement, characterising the discussions as mere "family conversations" with no legal standing. They argue that as trustees of the family trust, Donwil Pty Ltd has the sole legal authority to make decisions regarding the trust's assets, including any potential sale.
Further complicating the matter is the structure of control within Donwil. While all four siblings are directors, the company's constitution requires only a 75 per cent majority for major decisions. With Robert and Anna aligned, they could potentially command that majority against Frank and Rita.
The case, presided over by Justice Peter Riordan, is ongoing. The court has already issued interim orders preventing the disposal of the Market Square property until the dispute is resolved or further order. The next hearing is scheduled for a directions hearing later this year, where the procedural timeline for the full trial will be set.
This legal stoush highlights the often-difficult intersection of family dynamics, substantial wealth, and complex trust structures. The outcome will not only determine the immediate future of a key Geelong property but also set a precedent for how similar family estate disputes are handled within the state's legal system.
