Murderer’s brother-in-law seeks litigation guardian rights

A battle is unfolding over murdered Queensland woman Lainie Coldwell’s estate.

Louis Mahony, convicted of the murder of Lainie Coldwell. Picture: Channel 9

A battle is unfolding over murdered Queensland woman Lainie Coldwell’s estate, including any proceeds from her multi-million-dollar life insurance policies.

Before being charged with Coldwell’s murder, her partner, Louis Mahony, applied to the Queensland Supreme Court for provision from her estate for himself and the couple’s daughter Dakota.

With Mahony serving a life prison sentence, his brother-in-law Athol Butler has asked the court to appoint him Dakota’s litigation guardian to protect her interests.

The court has been told Coldwell’s will was prepared before Dakota, now 12, was born and so made no specific provision for her.

Coldwell’s mother, Patricia, says in court documents obtained by The Australian she is “strenuously opposed” to Mr Butler being appointed litigation guardian. “My experience and dealings with members of the Mahony family over the years have led me to believe the only thing they care about is money,” she writes in an affidavit.

Mahony quickly cashed in Coldwell’s superannuation policy, sold the couple’s property at Dundee Beach in the Northern Territory, took a boat belonging to the estate and kept all her items, including jewellery and archery and gym equipment, the affidavit states. Mahony also cut Patricia Coldwell and husband Trevor off from seeing their granddaughter when they wouldn’t sign false statements for him, the affidavit adds.

Ms Coldwell also claims in the affidavit that shortly after her daughter’s death, Mahony’s father, James, suggested they divide one of ­Lainie’s insurance policies, worth $750,000. Her parents were told to take $200,000, give $200,000 to Lainie’s brother Darren and allow Mahony to keep the rest, it is claimed. “We were gobsmacked. Trevor and I felt as if Jimmy was trying to ‘buy us off’. We hadn’t even thought about the money or the policy at that stage,” the affidavit states.

Lainie Coldwell had a second life insurance policy worth $1.5 million. Both policies were taken out in the months before the murder.

It is understood no one yet has access to any of the insurance money, and it will be up to a court to rule how to divide anything paid out by insurers.

Mahony’s father yesterday denied suggesting the insurance should be divided. “We worked hard all our life and we retired with a few bob, but we’ve never been interested in money as far as that goes. All we are after is money for Dakota,” he said.

Mr Butler, the deputy principal of Maryborough Special School and married to Mahony’s sister Kym, yesterday said he was interested only in Dakota’s welfare. In an affidavit filed in court, he outlined his extensive efforts to help care for Dakota, who since her mother’s death has variously lived with Mr Butler’s family and Mahony and his new wife.

In November, a jury convicted Mahony of Lainie’s murder, finding he staged her death to make it look as if she fell from a tree at their Charleville home in August 2009. He has appealed against the conviction, but if it stands, he will automatically lose any right to her life insurance.

Her parents are the estate executors and her mother yesterday said she had every intention to provide for Dakota.