Southport RSL Sub-Branch and Memorial Club take claims of almost $6 million to court

Bitter infighting over almost $6 million allegedly owed at a prominent Gold Coast RSL has prompted the start of what could be a lengthy court battle.

BITTER infighting over almost $6 million allegedly owed at a prominent Gold Coast RSL has prompted the start of what could be a lengthy court battle.

The Southport RSL Sub-branch and the Southport RSL Memorial Club are at loggerheads over a series of alleged unpaid debts – some dating back 20 years.

The legal battle began last year when the sub-branch claimed in the Southport Magistrates Court the club had failed to pay $80,000 in a combination of rent and loan repayments.

The Southport RSL Sub-branch has claimed the Memorial Club did not pay $80,000 in rent and loan repayments. Picture: Lawrence Pinder

The sub-branch accused the memorial club of failing to pay “agreed” debt instalments of $40,000 for both March and April 2019. It is claimed the sub-branch loaned the club $2.7 million in 2013.

The club hit back this month claiming it did not owe any money and was, in fact, owed $5.8 million itself from the sub-branch.

The club claims the sub-branch actually owed $3.057 million for a loan given in December 2000. It alleges the loan was given before both the club and sub-branch went into receivership in ­August 2001 and was never extinguished.

The Club has launched a counterclaim saying it is actually owed $5.8 million by the sub-branch. Picture: Jerad Williams

The memorial club also alleges it is owed more than $545,000 for maintenance work such as airconditioning, the cenotaph cover and glass fence, disabled toilets, painting and lift upgrades. It says the work was paid for on the understanding the sub-branch would pay it back.

The memorial club also claims it is owed $2.7 million it paid in $40,000 monthly instalments because the loan never existed.

“(The club) denies a loan ever existed between (the sub-branch) and (the club) and says payments were made by (the club) to (the sub-branch) purporting to be in satisfaction of ‘the loan’ were a mistake,” the club alleges in court documents.

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Last Friday, Magistrate Pamela Dowse transferred the matter to the Supreme Court in Brisbane as the sum of money is too large for the magistrates court to consider.

The matter will now progress through the court system with the sub-branch expected to respond to the club’s claims in the coming weeks.

The court case could drag out for years due to the complexities involved.