Geoffrey Kinghorn, the son of the founder of Allco Finance Group, John Kinghorn, is reported to be suing Allco's receiver for malicious prosecution over an abandoned Federal Court case relating to the collapsed company's aviation assets, says the Sydney Morning Herald.
Kinghorn claims that the receiver, Peter Gothard, a partner of Ferrier Hodgson, began the case against him in December using ''fabricated allegations and following legal advice which did, or should have, made it clear that the proceedings were baseless''. Gothard discontinued the case in April.
In his suit, Kinghorn claims the Federal Court case was an abuse of process, because it was designed to gain a commercial advantage over him.
A pre-trial application by Gothard for the case to be thrown out was denied by the ruling judge, Judge Bozic, who said both the malicious prosecution and abuse of process claims should proceed.