By NOEL MURPHY
NEW allegations of Geelong Advertiser kickbacks for real estate agency Hayeswinckle have been made in the County Court.
The Weekly Review’s publisher, MMP Greater Geelong, has lodged an updated claim in the County Court accusing Hayeswinckle of striking a $200,000-plus deal with the Advertiser via News Ltd national director of real estate Tom Panos.
The claim is the latest in a bitter legal battle and advertising war between the publications after 25 agents left the Advertiser last year to become shareholders and advertisers in the Review.
The updated claim alleged that Mr Hayes pursued Mr Panos for a special “sponsorship agreement”.
The agreement was allegedly predicated on Hayeswinkle advertising nowhere in competition with the Advertiser.
But Mr Hayes had already signed an agreement with MMP to spend $480,000 a year on advertising in the Review, the claim said.
Under the Advertiser deal, Hayeswinckle would receive “financial benefits including cash payments and rebates in the form of credit adjustments totalling in excess of $200,000, plus free promotional pages and extensive editorial coverage, valued at in excess of $15,000”, the claim alleged.
It asserted that Mr Hayes failed to disclose the deal to MMP and then stopped advertising in the Review.
The claim said the Review initially made profits of about $20,000 a week but had “suffered a monthly loss” of around $30,000 since Hayeswinckle’s defection.
The claim sought damages for breach of contract and negligent misstatement.
It omitted MMP’s initial February writ damages claim of $1.39 million and allegations the Advertiser supplied Mr Hayes with yearly payments of $50,000 and a diamond ring.
In February a News Ltd spokesperson said any suggestion the Advertiser had behaved improperly was “ridiculous’’.
Mr Hayes said this week he was confident the allegations could be “easily defended”.
Neither the Advertiser nor News Ltd’s corporate affairs office returned the Independent’s calls for comment on the updated writ.
The Estate Agents Act prohibits agents from retaining rebates or discounts on advertising. Rebates or the value of any gifts must be returned to vendors.
The Review agreement gives its Geelong real estate agent shareholders fixed dividends for set amounts of advertising spend.
