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Rinehart family feud over Hope Downs turns to WA court

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Tim ClarkeThe West Australian
VideoFinance News Presenter Meilin Chew looks at The Hancock Heirs, who came in at No.4 in this year's Rich List.

The seemingly endless war between Australia’s richest woman Gina Rinehart and her children Bianca and John resumed before a WA judge yesterday, as the legal battle over who owns how much of the multibillion-dollar Hope Downs iron ore operation returned to court.

Having already been fought before the NSW and Federal courts, this week it is the turn of Supreme Court Justice Rene Le Miere to try to unpick 40 years of argument over the massive mining legacy left by Mrs Rinehart’s father Lang Hancock.

Central to the hearing are the allegations of Mrs Rinehart’s son, John Hancock, and daughter, Bianca Rinehart, that their mother engaged in a “fraudulent and dishonest design” to deprive them of what they say was their rightful share of the family fortune.

Also embedded is Wright Prospecting, controlled by descendants of Lang Hancock’s late business partner Peter Wright, which is suing Hancock Prospecting over the ownership of iron ore rich land known as Hope Downs 4, 5 and 6.

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They want to take their claim to a trial — but Mrs Rinehart, as she has done at so many legal hearings, wants to go to private arbitration to thrash out the issues away from the public gaze.

That was what the Full Federal Court ruled should happen late last year.

Lawyer and former Federal MP Sophie Mirabella was present at the start of the two day hearing.
Camera IconLawyer and former Federal MP Sophie Mirabella was present at the start of the two day hearing. Credit: Megan Powell
Gina Rinehart’s lead lawyer Noel Hutley leaves the Supreme Court yesterday.
Camera IconGina Rinehart’s lead lawyer Noel Hutley leaves the Supreme Court yesterday. Credit: Megan Powell

And yesterday, Hancock Prospecting’s Sydney silk Noel Hutley SC, and Mrs Rinehart’s own lawyer Steven Finch said that decision should be followed by the WA court.

But barrister Christopher Withers, representing Mrs Rinehart’s children, said Mrs Rinehart’s argument was based around a clause in the “unconscionable” Hope Downs deed which he claimed Bianca was “bullied” into signing.

Mr Withers said that deed was only drawn up after Mrs Rinehart had expressed a desire to cut her son John out of the family trust altogether, but was told by her lawyers that she could not.

He said to place the WA case in arbitration would delay the action for years, which he said would be unfair on Wright Prospecting. He revealed the Federal Court battle between Mrs Rinehart and her children was now on its way to the High Court.

“The parties cannot agree about much ... 31/2 years in we are still having the debate about where to have the debate,” Mr Withers said.

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