Jarvis Group empire at centre of multimillion-dollar will battle between tycoon’s wife and kids
The death of one of Australia’s most successful businessmen has sparked a bitter family feud over his automotive empire, with his widow fighting her stepchildren over millions of dollars in assets, including two luxury yachts worth $4m apiece.
The death of one of South Australia’s most successful businessmen has triggered a bitter family feud over his multimillion-dollar fortune, with his widow staking her claim to millions of dollars in investments and other assets, including two luxury yachts worth $4m apiece.
Joanna Collins, the wife of Richard Collins – who grew the Jarvis Group from a single showroom into one of Australia’s largest privately owned automotive groups before his death in August – has launched a legal bid to protect her interests in two family trusts and a super fund by stripping control from her three stepchildren.
It’s the first step in a potential claim against Mr Collins’ $19m estate, and tens of millions of dollars in business and property assets across the Jarvis car dealership empire.
Documents filed in the Supreme Court reveal that Ms Collins, 60, is seeking for an independent trustee to be appointed to the two ‘inter vivos’ trusts – The Dolce Vita Trust and The Strangways Investment Trust – or for the trustees to be restrained from selling trust assets while she considers a formal court challenge to Mr Collins’ will.
During an interlocutory hearing last week, the court heard that Richard Collins’ estate was valued at around $19m, made up of shares, superannuation and other investments.
But that figure excludes the Jarvis Group business empire and property holdings held in other trusts and corporate vehicles. Ms Collins is considering an additional claim over those assets.
Mr Collins’ children to his first wife Vicki – Daniel Collins, Stephanie Matern and Elizabeth Henseler – and lawyer Donna Benge, are the executors of the estate, and control the two trusts at the centre of the current proceedings through their directorships and shareholdings in the trustee companies.
The court heard that Ms Collins was seeking control of two $4m yachts, moored in Adelaide and Sydney, and currently held in The Dolce Vita Trust.
“We seek an injunction restraining the sale of those boats, pending either the trustee giving consideration to our claim for those boats, as a matter of the exercise of the power of the trust deed,” Ms Collins’ barrister Simon Ower KC told the court.
“Either the trustee distributes them to her, in light of the evidence that she puts forward as to why they should be given to her, or alternatively under the family provision claim, we say that the promises should sound as per a direction in the will that the boats be given to her.”
However Tom Cox KC, representing Mr Collins’ three children, argued the yachts were “worthless” given there were loans held against them, and due to the significant costs of servicing and maintenance which had reached close to $110,000 over the past five months alone.
He added that Mr Collins had been looking to sell the yachts prior to his death, and current negotiations with interested buyers would be compromised by any injunction against their sale.
Ms Collins is also seeking a payout of up to $4m from a life insurance policy held in The Strangways Investment Trust, as well as some of the $9m in shares in the parent company of online vehicle marketplace Carsales.
Richard Collins was a previous director of Carsales and was the company’s chairman for a brief period in 2018.
His will, which was granted probate and made legally official last week, only entitles Ms Collins to income generated from the shares and investments held in the trust, and not the underlying assets.
“We’ve come forward asking for an independent trustee to be appointed, and we’ve asked for that to be done urgently, because there is presently a life insurance policy of approximately $2m and potentially $4m,” Mr Ower told the court.
“We would seek the trustee to effectively call that in and then again we would ask the trustee to exercise its discretion to distribute us the money.”
The court heard that Ms Collins would take over sole ownership of the North Adelaide mansion that she shared with Mr Collins prior to his death.
Mr Ower said any potential legal action against the estate would, in part, be aimed at untangling a complex web of business, property and investment holdings.
“If it is brought it’s likely to be the significant part of the dispute, and parts of the dispute that’s in these proceedings may be less significant,” Mr Ower told the court.
“One of the matters that we are still presently grappling with is the size of the estate, and the exact nature of the benefits ... that my client receives.”
In a statement provided to The Advertiser, Ms Collins said: “Richard and I had a very happy and loving relationship and marriage over 30 years. I am still grieving his death.
“I have been forced to take the unfortunate step of going to court to preserve the assets of the estate while I consider my position.”
Mr Collins’ three children said they were “saddened” by Ms Collins’ claim.
“As executors of our father’s estate, it is our role to uphold his final wishes,” they said in a statement.
“Our father was a respected, much loved and sincere person with an unwavering sense of compassion, who generously donated to many wonderful causes, leaving a lasting legacy in his place.
“Despite our best efforts to communicate openly and engage constructively in line with the wishes of our father, regrettably we have been put in a position where we need to defend his estate. This matter is currently with the court and we are working with our legal team to resolve this fairly, in accordance with the law.”
Richard Collins died on August 15 at the age of 74 after a brief illness. He took over the Jarvis business in 1984 and transformed it from a single showroom in Trinity Gardens to a network of eight dealerships.
Ms Collins is a successful businesswoman in her own right, running upscale beauty salon and day spa A Touch of Beauty for close to 40 years.
The couple were once described as the “most charitable socialites going around”, supporting a long list of animal welfare, children’s charities and other causes including the Orangutan Foundation International Australia, Animals Asia Foundation, the Jane Goodall Institute, Variety and The Green Gecko Project in Cambodia.
In recognition of their work, they each received the Member of the Order of Australia in 2021.
The matter is due back in court next week.
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Originally published as Jarvis Group empire at centre of multimillion-dollar will battle between tycoon’s wife and kids
