Block landscaper David Franklin’s legal fight with Smorgon dynasty
A prominent Melbourne landscape architect is being pursued in court for allegedly failing to repay $2.6 million to members of the ultra-rich Smorgon dynasty.
Smorgon heiress Bindy Koadlow and her husband David filed a High Court lawsuit against Dave and Jane Franklin earlier this month, seeking to recover a multimillion-dollar loan made to the award-winning landscape and pool designer. Block.
The Koadlows claim their family investment company, Binvid, lent the Franklins $2.5 million for 12 months in March last year, but the monthly interest payment was not properly honored.
They want the return of the money and interest payments they claim they lent to the family.
The loan was made just weeks after Franklin Landscape & Design, a Franklin “boutique” landscaping and pool construction company, went into voluntary liquidation.
The Koadlows’ loan is listed as the sole mortgage on Franklin’s 1913 Federation home in Black Rock, just a few hundred yards from Half Moon Bay and in the suburb’s exclusive “Golden Triangle.”
The house was purchased in Jane’s name for $3.3 million in March last year, three weeks after David Franklin liquidated an arm of his landscaping business.
The home is a significant upgrade from the couple’s previous $2.7 million home in Beaumaris.
case Coming after a difficult period for high-profile green thumbs.
Last year, the Tax Office successfully enforced an executive penalty notice against Franklin in the District Court, making him personally liable for $2.4 million in unpaid tax debts at four of his companies.
In addition to the taxman’s and the Koadlows’ claims, two of Franklin’s businesses have gone into liquidation over the past 14 months, while a third company involved in the pool design is also working with a restructuring practitioner.
While Franklin struggles with a tough financial period for some parts of her business, she puts on a brave face and proudly promotes her new TV show on the NineNow Network. Australia’s Best Pools, After 12 seasons as a star trader Block. (This imprint and Nine Network are both owned by Nine Entertainment.)
The highly sought-after landscape architect also struggles with health problems. He revealed in June that he had been diagnosed with prostate cancer but hoped doctors had caught it at an early stage.
At the same time, the parent operating company of Franklin’s business – Franklin Group Australia – continues to create desirable outdoor living designs.
The Franklin family did not respond to a series of detailed questions about their financial affairs.
Dave Franklin’s lawyer says claims that he is unable to repay a significant loan are unfounded.
The lawyer also criticized claims that the popular TV figure is facing financial problems with his business and may not expect his business to continue.
The Koadlows’ claim was not made against the Franklin Group Australia business or any company in Franklin’s landscaping, design and pool business.
Instead, the family, which includes the daughter of businessman and philanthropist Victor Smorgon, is suing the Franklins themselves and a company that manages the family foundation.
The liquidators’ report for April last year shows that Franklin Landscape & Design, David Franklin’s business, is suspected of owing $6.5 million to creditors in bankruptcy.
This included a $2.3 million bill from the Internal Revenue Service and another $3.2 million the company allegedly owed the Koadlows.
However, the report stated that the Koadlows paid off their guarantee on the loan and refinanced the loan. A later report into the group’s creditors’ meeting in May did not include the $3.2 million debt owed to the Koadlows, suggesting the couple had not sought to enforce the loan.
According to the report, the employment and benefits of all staff were transferred to Franklin Group Australia during the voluntary liquidation.
The liquidators also said that from their preliminary examination of Franklin Landscape and Design’s books and records, the company may have been insolvent since September 2024 due to the group’s long-running problems with the Tax Office.
The Franklin couple’s lawyer said allegations that the company was trading while in bankruptcy were false.
A separate company, Franklin Design Studio, was ordered wound up by the Federal Court last year over unpaid tax debts. This company owes its creditors just over $250,000. The report stated that the business was transferred to a different organization before being liquidated.
Another part of the group, Franklin’s pool business, continues to operate after appointing a restructuring practitioner to negotiate a deal with its creditors in February last year.
Documents filed with the Australian Securities and Investments Commission show the restructuring plan ended late last year due to failure to deliver.
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Sarah Danckert is a senior reporter specializing in investigations and corporate misconduct. He is a two-time Walkley Award winner and has won six Quill Awards and two Kennedy Awards.Connect with: X or email.
