Sue Bell: Bells Beachside Realty principal ordered by judge to repay $300,000 investment

A Coolangatta-based realtor has been ordered to repay a $300,000 investment and come in for criticism from a judge, who found she used her business as a “personal money bank”. Full details.

Sue Bell, owner and principal of Coolangatta-based Bells Beachside Realty. Picture: Facebook

A Gold Coast real estate agent who solicited a $300,000 investment from a pair of clients, but then failed to transfer any shares or return the money, has been ordered to hand back the cash, while also copping significant criticism from a judge for her conduct.

Married pair Ashley William and Debbie Ann Weeks pursued Sue Maree Bell and her Coolangatta-headquartered agency, Bells Beachside Realty, in the Brisbane District Court seeking repayment of their investment (minus $2500 already repaid).

Ms Bell resisted this, arguing she was only liable to repay about $114,000 because the investment had been mischaracterised.

According to Judge Bernard Porter KC in his March 18 judgment, the Weekses met Ms Bell when she sold an investment property of theirs at Tweed Ultima Apartments in February 2016.

Tweed Ultima Apartments. Picture: Tweed Ultima Apartments

“A trusting rapport was said to have been created between the three of them following an unsuccessful attempt by one of Ms Bell’s former employees to ‘poach’ the Weeks’ sale from her,” Judge Porter said.

“Ms Bell said they were the sort of people she would like to do business with.”

The parties became closer (the Weeks’ son, Ben, started work experience at Bells Beachside Realty around this time) and they discussed an investment several times before a deal was orally struck in February 2018 – but that agreement subsequently became highly contested.

On the Weeks’ account, the agreement was that they would invest $300,000 in Bells Beachside Realty, in return for 40 per cent of the shares in the business (although there was some confusion as to whether this was what they agreed to buy, or rather 40 per cent of the profits from the property management side of the business).

Former Bells Beachside Realty trainee agent Ben Weeks. Picture: Supplied

The money was transferred in a series of tranches, between March 2018 and June 2019, on the basis of the oral agreement, with the terms to be finalised in a subsequent written agreement.

A few months later, a draft contract had been produced, but Ms Bell never signed it.

According to the Weeks, this was because it had become an inconvenience – LJ Hooker was circling, and they ultimately purchased a large component, perhaps all, of Ms Bell’s rent roll for $300,000.

Judge Bernard Porter KC. Picture: Tara Croser.

When the Weekses found out about the LJ Hooker negotiations via their son Ben, who was by that point employed by Ms Bell as a trainee agent, they say they were told their investment would be reimbursed, but this never happened.

However, according to Ms Bell, there was never any agreement the Weeks would pay $300,000 in return for a 40 per cent of the shares.

Rather, she claimed the money was a loan, from which the wages and superannuation of Ben, the Weeks’ son, could be paid, as well as other business expenses.

Sue Bell, owner and principal of Coolangatta-based Bells Beachside Realty. Picture: Supplied

Judge Porter ultimately found that the oral agreement of February 2018 was an “inherently ineffective” contract, in that it was too vague to be legally binding – particularly as to what, exactly, the Weeks were buying with their $300,000 investment (i.e. shares or property management profits).

On that basis, Ms Bell needed to repay the outstanding $297,500.

Judge Porter made numerous criticisms of Ms Bell’s conduct.

She did not attend the three-day trial, having ostensibly taken a honeymoon cruise in New Zealand taking in those dates, despite knowing she would likely be called to give evidence; she “appeared” to have not paid Ben Weeks a “substantial” portion of superannuation; she tried to declare bankruptcy on the cusp of the trial; and she treated her business as a “personal money bank”, Judge Porter said.

Originally published as Sue Bell: Bells Beachside Realty principal ordered by judge to repay $300,000 investment