$500million Supreme Court Battle Between one of Australia’s Oldest and Richest Families Becomes $1billion Dispute

As reported in our first blog about the dispute surrounding the estate of Sir Denzil Mcarthur-Onslow, a battle between siblings and property developers leaves the fate of the balance in dispute. It came to light that Sir Denzil’s children to his second wife, Lady Macarthur-Onslow, were locked in a battle about the future of their late father’s land, and the fortune attached to it. It is now clear that they are not the only ones who want to lay their claim to the estate, as the grandchildren of Sir Denzil, and his first wife Elinor, have entered the discussions, saying they deserve a cut of the money, which they always ‘assumed’ they would receive one day.

For further information on this story, read part one of our blog here.

Grandchildren of Sir Denzil Macarthur-Onslow’s first wife demand payment.

In 2013, aged 90 Lady Macarthur-Onslow passed away. On January 11^th of this year, the dispute over her Estate came to the NSW Supreme Court. The judge, Justice Stephen Robb, decided that although Lady Macarthur-Onslow was capable of constructing her Will in 2004, it did not properly reflect her wishes. He said that it treated her son and daughter differently, ‘with the effect of giving (the son) voting control.’ He added that the ‘high degree of animosity’ between the siblings meant it was ‘irrational’ for Lady Macarthur-Onslow to think that her son would take care of her daughter, and therefore removed the potions of the Will that meant he had greater power.

After the dispute between two of his children came to light, the Estate of Sir Denzil Macarthur-Onslow, is now said to be worth a staggering $1billion. Both his children, and grandchildren, his direct descendants, say that they have received ‘not one red cent’ of this incredible sum.

Having been made aware of the magnitude of the estate, and the way in which it should be divided, they have contacted lawyers, looking to ensure that ‘everyone gets their fair share’.

Airlie Hawley, 46, Sir Denzil’s granddaughter said: ‘It’s difficult for us to come forward … you dread being called a gold-digger. We are not asking for much, but we always expected that our children would one day benefit.’ She added that if this was not to happen, then she would be prepared to take it further.

As discussed in part 1 of this story, as well as the dispute between siblings Lee Macarthur-Onslow, and Lady Katrina Hobhouse, the property, which Sir Denzil acquired in the 1940s, could host up to 4300 houses, and is the last remaining land between Sydney and the Illawarra which remains undeveloped.

At the time of Sir Denzel’s death in 1984, the property was valued at $25million, and is now under keen interest from developers. As a result of the dispute between the siblings, documents from 2004 show that the company Australand offered $175million for the property, plus 7.5% profit after the land had been rezoned and resold for housing. However, in this tie the land prices have at least doubled, meaning that now the property is worth closer to $1billion.

Ms. Hawley says that there is enough to go around, but that money is not the only issue. She is worried that the legacy of her father and her family connections to the Rum Revolutions will be forgotten, stating that ‘we also feel that we’ve been wiped from history.’

Sir Denzil was married twice, something unusual for the time. His first wife was a ‘gentle Scotswoman’ Elinor Caldwell, who came from Lockerbie. The couple had 2 children, Ion and Neil, before moving to Scotland, where they had 2 more children, Diana and Ewan. After serving in the Second World War, Denzel returned to Australia in 1948 to live at Mount Gilead. His sons Ion and Neil joined him, while his wife and two youngest children remained in Scotland, and the couple eventually divorced.

In his second marriage, to Dorothy, he fathered Katrina and Lee, the siblings at the heart of this dispute. He went on to enjoy great business success, as well as maintaining a close relationship with Ion and Neil. 

After his death in 1984, the streets of Sydney were closed for his funeral. A gun carriage led his coffin down George Street, while it was accompanied by 6 army officers. Ms Hawley’s father, Neil, spoke at the funeral. She explained ‘I was 14 when he died, so I certainly remember him’, before adding that she remembers him having dementia. Going on to speak about disputing his estate, she explains her father’s position at the time, explaining he said: ‘we won’t do anything now (when he died) because he had a widow, Lady Dorothy. We were comfortable financially, and my father said it’s not the right thing to do (forcing Lady Dorothy off the estate.)’ They always assumed that when she died, some of the money would flow down to them.

Lady Dorothy went on to live another 30 years, outliving Ion, Neil, and Diana, before her death in 2013. ‘It made perfect sense that Sir Denzel would leave the Mount Gilead property to use for the rest of her life … but that now she has died we see that the estate is only going to her 2 children, and not to all his children and grandchildren’ said Ms. Hawley, who adds that Lady Dorothy’s children have no children themselves, so is speculative as to where it will end up.

Ms. Hawley’s campaign is supported by Ion’s son, and her cousin Rupert Macarthur-Onslow, as well as other members of the family. Sir Denzil’s first four children gave him seven grandchildren, some of whom have gone on to have children of their own, yet not one of them has received anything from the estate, despite being, in her own words, ‘legitimate heirs’.

The case continues to develop.

Contact Szabo & Associates, Solicitors: Contesting a Will Solicitors Sydney & NSW

If you are looking to contest a Will, or for more information, call to book a consultation with George Szabo, our specialist solicitor in New South Wales on 02 9281 5088.