Rob Mills Architect chases Fern Moufarrige over renovations to Bronte coastal mansion

Rob Mills’ firm is chasing a Sydney client for hundreds of thousands of dollars amid a dispute about the renovation of a beachside mansion.

The luxury Bronte home at the centre of the dispute.

Architect to the super-wealthy Rob Mills’s firm is chasing a Sydney client for nearly $400,000 amid a dispute about the renovation of a luxury beachside mansion.

But his client, Fern Moufarrige — partner to former Servcorp chief operating officer Marcus Moufarrige — is fighting the claim worth $385,461.

That fee was supposed to be a percentage of the final construction cost, but Ms Moufarrige alleged there was no such agreement. The property is located in the Sydney coastal suburb of Bronte.

Marcus is the son of Alfred Moufarrige, who founded global virtual office provider Servcorp in 1978 in Sydney. Marcus runs his own company, a landlord software provider called Ility.

Fern Moufarrige, left, and Liliana Caputo.

Details about the dispute emerged because Ms Moufarrige lodged a security for costs application against Mr Mills. These applications are filed if a party to a proceeding is concerned the other may not have sufficient finances to pay costs if they lose.

While Ms Moufarrige lost the application, a NSW District Court decision showed Mr Mills’s firm is suing Ms Moufarrige for an alleged breach of payment obligation, plus interest and legal costs.

“The architectural services concerned the renovation and extension of a large house in Bronte, New South Wales, in respect of which the fee due to the plaintiff was expressed as a percentage of the final construction cost,” according to the decision.

“(Ms Moufarrige) defends the claim … on the basis that there was no agreement as to the approved plans and works or about the budget for the completion of the works, which was a condition of the obligation to pay.

“She also alleges repudiation and breach by the plaintiff of an essential implied term of the agreement as to the exercise of care and skill.”

Marcus Moufarrige, former chief operating officer of Servcorp. Picture: Britta Campion.

Ms Moufarrige tried to force Mr Mills’s firm to pay the court security of $146,104 in the event he needed to pay her costs.

According to the judgment, she unsuccessfully argued publicly available materials, including stories published by The Australian, supported an inference that Mr Mills “would be unable to meet a costs order in the sum she estimates would be recoverable if she were to succeed in the proceedings”.

“Those materials concern the plaintiff’s paid up capital, lack of any real property and registered security over its assets. There is also a suggestion that other claims may be brought against the plaintiff,” NSW District Court judge Kevin Andronos wrote.

Judge Andronos rejected the argument that the possible claims — a likely reference to Fair Work matters that have now settled — meant he would be unable to cover any adverse costs order.

“There is otherwise no evidence as to the plaintiff’s trading or asset position, no balance sheet, no profit and loss statement and no tax returns. The plaintiff (Mr Mills’s firm) did not volunteer such evidence and the defendant (Ms Moufarrige) did not issue a Notice to Produce to compel it,” he said.

Later Judge Andronos said: “The facts of there being secured assets (prestige motor vehicles) and no real property owned by the plaintiff do not augment a picture of impecuniosity,” meaning cash-strapped.

“These matters are not evidence of the plaintiff’s asset position or its cashflow. Of more relevance was the fact that the plaintiff has traded for 30 years and has maintained the same principal place of business since 2007,” he said.

Piper Alderman said the architectural practice “is solvent, has traded for many years, and continues to trade without any history of solvency issues, including court action.”

Mr Mills has taken out finance on two luxury cars, a Mercedes M Class and Land Rover Defender, according to the judgment.

Property records show Ms Moufarrige is the mortgagor of the house in Bronte, which last sold in 2010 for $13.5m according to Realestate.com.

The six bedroom, seven bathroom home is described online as a “masterpiece and landmark estate intuitively crafted to create a sanctuary of undeniable luxury and style”.

It also has ocean views, according to the listing.

The Australian has previously reported on Fair Work disputes lodged against Mr Mills’s firm including by Juliana Junqueira and Alice Zhou.

As well, the masthead revealed Mr Mills’s firm designed a shadow set of drawings for an allegedly unauthorised basketball court at a Strathfield property owned by the Tartak family, who made its fortune from the Bingo waste management empire.

A spokeswoman for Mr Mills said: “This is a commercial matter that we are unfortunately having to pursue through the courts.”

Ms Moufarrige is represented by Paradise Charnock Hing, who declined to comment.

Originally published as Rob Mills Architect chases Fern Moufarrige over renovations to Bronte coastal mansion