Griffith building designer had ‘no idea’ $900,000 went into bank account in her name, court told

A NSW Supreme Court hearing has been told that prominent Griffith building designer Carmel La Rocca “had no idea” $900,000 had gone into a bank account in her name.

Three Corner Group Pty Ltd, of which Griffith winery boss Joe Sergi is the sole director, alleges Ms La Rocca was paid this sum of money as part of a loan advance intended for Mr Sergi’s company.

Mr Sergi launched civil Supreme Court action to recover these funds from Ms La Rocca.

“Why hasn’t Ms La Rocca repaid the money?” Justice Francois Kunc asked Ms La Rocca’s lawyer Matthew Twyford at a hearing on Friday (11 October).

“Because she doesn’t have it, that’s my instructions,” Mr Twyford replied.

“As I understand the evidence, it’s gone into a bank account in her name, so what is her answer beyond a bare denial as to why she hasn’t repaid the money … has the money gone? Does she not control the account? What’s happened?” Justice Kunc asked.

“The answer is that Carmel La Rocca didn’t know the money came in and only discovered that during the course of these proceedings …,” My Twyford said.

“She denies receipt in the sense that she never got it, but she admits, yes, that it came into an account in my name but I never physically received it.

“Her case is that ‘I had no idea that the money came in and went out’.”

Three Corner Group is suing Ms La Rocca and a second defendant, Sydney-based broker Matthew Eid, whom Mr Sergi alleges was his agent to secure a loan of $7.2 million.

Mr Sergi claimed Mr Eid “breached his fiduciary duty” by “directing or otherwise causing the lender to make payment [of about $900,000 of the loan] to Ms La Rocca”. A fiduciary duty is the legal responsibility to act in the best interest of your client.

In his written statement to court, Mr Eid denied this assertion and also states that Three Corner Group is not entitled to the money it has sought.

Ms La Rocca and Mr Eid separately pleaded the matter be dismissed for being “vexatious” and sought security of costs. This means they wanted Mr Sergi’s company to pay money into a court fund that would cover their legal costs if he lost the case.

On Friday (11 October), Justice Kunc ruled against the defendants on both these claims and ordered them to pay the legal costs Mr Sergi incurred in contesting the motion.

The judge said the matter should not be dismissed as there was enough evidence to progress it to a trial. He said Ms La Rocca’s acceptance that the money was paid into an account in her name “begs more questions than it answers”.

Justice Kunc gave the defendants until 8 November to submit evidence and set the matter down for an application hearing on 25 October, in which he will decide on the next steps of the case.

The judge also encouraged both parties to attempt mediation – negotiation outside the court process to resolve a dispute.

The sole director of the plaintiff’s company in this Supreme Court case, Joe Sergi, is also the sole director of longstanding Griffith winery Warburn Estate.

Warburn Estate’s land, plant, equipment, trademarks and cellar door were sold to another Griffith business, Meditrina Beverages Pty Ltd, in early 2024. However, Warburn remains a registered company.

Carmel La Rocca is also president of the Multicultural Council of Griffith Inc, which held the town’s annual multicultural festival on Saturday (12 October).