Stephen Silvagni embroiled in pub legal stoush

Carlton great Stephen Silvagni is embroiled in an awkward legal stoush with his business partners over a pub in Collingwood.

One of Carlton’s favourite sons, Stephen Silvagni, has been embroiled in an awkward legal stoush over a loan to a pub in Collingwood.

Mr Silvagni agreed to serve as a guarantor for a $386,000 loan for the Prince Patrick Hotel on Victoria Parade.

By serving as guarantor, the Carlton great was on the line to cover the loan if it was not repaid.

Court documents show Mr Silvagni wanted business partners Donato Smarrelli and John Cappellin to sign a separate security agreement giving him a claim over units in a trust which owned the hotel should the loan default.

Stephen Silvagni started court action against his business partners. Picture: Getty Images

After months of emails imploring the partners to sign the agreement failed, the former star full-back launched legal action in November last year seeking costs of about $45,000.

The Supreme Court heard that in March 2021, Mr Silvagni’s self-managed super fund Gulfmead agreed to serve as guarantor for a loan taken out by a company called Prince Patrick Properties.

The loan, from the Bank of Melbourne, was to be paid by December 27, 2021.

Mr Silvagni, Mr Smarrelli and Mr Cappellin are directors of Prince Patrick Properties which owns the Prince Patrick pub.

Between May and August, Mr Silvagni’s solicitor sent 11 emails to the defendants’ solicitors about the proposed security agreement without resolving the matter.

The Prince Patrick Hotel on Victoria Parade in Collingwood.

The drama was playing out as Mr Silvagni mourned the death of his football legend father Sergio Silvagni in July of 2021.

Sergio, the first of three generations of Silvagnis to play for the Blues at VFL/AFL level, played in two Carlton premierships in a decorated career.

A lawyer for Mr Smarrelli conceded the delay around the security agreement “would strain the patience of Job”, court documents show.

The court also heard Mr Cappellin was hospitalised and one of the defendants’ lawyers laid low with Covid during period of delay.

The sale of another pub, the Royal Mail Hotel in West Melbourne, was to pay out the Prince Park loan but it fell through on November 4.

Stephen Silvagni (right) with his son and Blues player, Jack (left) tried to mitigate the drama as he mourned the death of his father Sergio (centre). Picture: Norm Oorloff

Mr Silvagni, his mother Rita, Mr Smarrelli and Mr Cappellin all have an interest in the Royal Mail.

By November 10, Mr Silvagni had run out of patience and started court action.

Solicitors for Mr Smarrelli said the proposed security agreement had shortcomings that needed to be addressed, court documents show.

The defendants had the loan temporarily extended and paid it out in late January and early February, discharging Mr Silvagni from his guarantor obligations.

But Silvagni’s legal team sought costs, including indemnity costs, awarded when a party has prolonged a matter and behaved in a “high-handed” manner.

In a ruling delivered late last month, Judge Richard Attiwill awarded costs on a standard basis and told the parties to go away and work out an agreed amount.

Originally published as Stephen Silvagni embroiled in pub legal stoush