Former Royal Croquet Club directors Tom Skipper and Stuart Duckworth hit with $708,000 legal claim

LEGAL action has been launched against the former directors of the Royal Croquet Club over a claimed $708,000 debt.

Former Royal Croquet Club directors Tom Skipper and Stuart Duckworth leaving the District Court where they are being sued for $708,000 Picture: Dylan Coker

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INVESTORS are suing the former directors of the Royal Croquet Club for more than $700,000.

Adelaide businessmen Leigh Morgan and Mathew Fitch have launched legal action against Stuart Duckworth and Tom Skipper seeking the recovery of $708,084, claiming the brains behind the RCC defaulted on loan repayments.

The amount includes outstanding loan debt of $674,906 and $33,177 for legal fees and associated costs in setting up a loan, according to a statement of claim filed with the District Court in November.

Mr Morgan and Mr Fitch, who have filed the action under their company New Social Investments (NSI), were among dozens of creditors left out of pocket following the collapse of RCC’s parent company the Social Creative in July last year.

According to court documents the pair entered into a loan agreement and advanced funds to Mr Duckworth and Mr Skipper on November 11, 2016.

In their claim they allege that Mr Duckworth, Mr Skipper and Nighttime Activities Pty Ltd — a company controlled by Mr Skipper and his wife Amber Kuhlmann — at various times last year had failed to comply with demands for payment.

Mr Morgan, co-founder of Utonic Beverages and chief executive of Gawler Place eatery Poké Me, said the loan had been secured against Mr Skipper and Mr Duckworth’s personal assets.

“We are obviously trying to work with them as closely as we can to get this resolved,” he said.

“Fortunately for ourselves we have got a personal guarantee for the money that was lent and probably shouldn’t have been lent in the first place.”

Entrepreneur Leigh Morgan who, along with businessman Mathew Fitch, is suing former directors of the Royal Croquet Club to recover a $708,000 debt.

In a statement of defence, Mr Duckworth did not dispute the outstanding loan amount but denied he and Mr Skipper had failed to make payments.

He argued that in or about June 15, 2017 he and New Social Investments had entered into a “subsequent” arrangement the “express terms of which” were that NSI would accept an initial payment of $50,000 and that he would pay, and NSI would accept, payments of at least $18,000 a month.

“The defendant has at all times complied with and performed their obligations under the June 17 agreement and although one payment was made a few days late, the defendant remedied the default and the plaintiff accepted payment,” he said.

He said there have been no further defaults or breaches, that the defendants continued to comply with the agreement and that defendants had made and the plaintiff accepted payments of $140,000.

He said NSI’s legal action was an “abuse of process” and a breach of the June 2017 agreement.

Mr Duckworth and Mr Skipper fronted a directions hearing on Tuesday where Master Mark Blumberg fast-tracked the matter for ruling before a District Court judge and advised the pair to get legal representation.

“Once you get to the judge it will be like holding the tiger by the tail,” he said.

Mr Duckworth and Mr Skipper declined to comment on the matter outside court.

Mr Duckworth and Mr Skipper relinquished control of the RCC as part of a takeover by Adelaide businessmen Roberto Cardone and Jason Di Iulio last month, who formed the New Royal Croquet Club.

Mr Cardone and Mr Di Iulio have no involvement in the legal claim nor will it have any bearing on this year’s Fringe event.