The case of 'Francis vs CPI Graphics Ltd' has been heard in the NSW Supreme Court over the past month. The dispute centres on a sum of $2,062,353.40 that Catherine and Robert Francis are trying to claw back from CPI Graphics.
The decision on 5 April to make CPI Graphics pay the money into court does not mean Mr and Mrs Francis have secured the disputed $2m; it means the judge decided there is "significant risk [the] mortgagee [CPI Graphics] may be unable to refund proceeds of sale with interest if so required by judgement".
The reasons identified for this "significant risk" include CPI Graphics' soft financial results following "net losses for every month from July 2010 to February 2011", as well as the possibility of changes to its ability to access the CPI Group finance facility after the impending BJ Ball acquisition.
CPI Graphics held mortgages over Sydney properties in Watsons Bay and Lindfield owned by Mrs Francis and her husband, Robert, the former managing director of Beaver Press, which went into liquidation at the end of April last year.
Beaver's plant list included a Komori long perfector, which had been supplied by CPI Graphics before the agency for the Japanese press maker was taken over by Ferrostaal.
Following the sale of the two properties, CPI Graphics received a total of $1.99m with $55,000 of interest accrued.
Mr and Mrs Francis are seeking to reclaim this sum "on the grounds that the mortgages were unconscionable, or unjust in the circumstances in which they were made within (NSW) Contracts Review Act 1980", according to court documents.
CPI managing director Bernard Cassell told ProPrint: "We are incredibly disappointed in this decision. We believe it is wrong and we are investigating the possibilities for appeal. We are confident we are going to win."
Robert Francis declined to comment when contacted by ProPrint.
The next court date will be a directions hearing, scheduled for early June.
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