Ken Talbot's widow seeks $45m in damages over will

The widow of former Queensland mining magnate Ken Talbot is seeking at least $45 million in damages from Melbourne law firm Arnold Bloch Leibler for alleged negligence in the execution of her late husband's estate.

Ten years on from his death in a light plane crash in the Congo, Amanda Talbot is claiming the failure to properly administer her husband's estate by both Arnold Bloch Leibler and his long-standing solicitor Bill Boyd had cost her "hundreds of millions of dollars" in potential investment windfalls.

The case will be heard in the Supreme Court in Brisbane next week.

Lawyers for Mrs Talbot will allege Mr Boyd had negligently prepared a will in 2002 which has caused her significant economic loss.

They will also allege Mr Boyd failed to prepare a new will in 2007 and 2008 despite Mr Talbot's requests, which also caused her and Mr Talbot's four children – two of which he had with Mrs Talbot – to suffer financial loss.

Mr Talbot, who was one of Queensland's richest and well-connected businessman of his generation, was valued at about $1 billion at the time of his death.

He made his fortune as founder and chief executive of Macarthur Coal, which was later sold to Peabody for $5.1 billion in 2011. Mr Talbot sold his stake in Macarthur Coal for $860 million in 2008.

Between 2010 and 2012, Mrs Talbot retained Melbourne-based law firm Arnold Bloch Leibler (ABL) to help her look into Mr Talbot's estate.

She had numerous meetings with ABL lawyers including with high-profile dispute and litigation partner Leon Zwier.

Lawyers for Mrs Talbot claimed ABL failed to advise her of possible claims against Mr Boyd over the preparation of the 2002 will and the failure to create a new will in 2007 and 2008.

Mr Boyd was appointed the administrator of Mr Talbot's estate in June 2012 and the late mining magnate's financial matters were still unresolved, according to the latest court documents filed this week.

"Notwithstanding the passage of almost eight years, administration of the estate remains incomplete and there is no definite time frame from within which it is expected that final distributions will be made," Mrs Talbot's lawyer said in their application.

"The losses to the value of the estate under Mr Boyd's stewardship run to hundreds of millions of dollars."

One potential loss cited in court documents was shares in Karoon Gas – which if sold earlier would have been worth about $40 million.

Mrs Talbot's lawyers, including former Northern Territory chief minister Paul Everingham, claim ABL should have known Mr Talbot had engaged Mr Boyd to prepare a new will and should have tried to access that document.

She also alleged that ABL should have advised her to oppose Mr Boyd as administrator and trustee in 2012.

"Mrs Talbot would thereby not have been exposed to the expenses and losses associated with the incompetence of Mr Boyd's administration of the estate," the court document said.

Mr Boyd and ABL have pleaded that the executor of Mr Talbot's will had correctly claimed privilege and confidentiality over Mr Boyd's files.

Although he made his fortune from mining, Mr Talbot was also thrust into the spotlight in 2008 when he became embroiled in the corruption scandal which brought down former Beattie government minister Gordon Nuttall.

The businessman said he was just trying to help Mr Nuttall out when he paid him a total of $300,000 in secret payments between 2002 and 2005.

Mr Nuttall was sentenced to 14 years jail in 2009, but was released after six years.

Mr Talbot was facing 35 charges over the secret payments when he died.