Legal Dispute Over a Luxurious Mansion
A high-profile legal dispute has emerged over a $26 million luxury mansion located on Tivoli Avenue in Rose Bay, Sydney. Known as Villa Biscaya, this Spanish-style home has gained attention not only for its opulence but also for its appearances on popular television shows such as Married At First Sight, The Bachelor, and The Voice. However, the property is now at the center of multiple legal battles involving its former owner, David Waterhouse.
Waterhouse, an estranged member of the prominent Waterhouse bookmaker family, sold the property to Michael Rothner, an investment banker associated with private equity firm Ashe Morgan, in 2023 for $26 million. The sale was a significant profit for Waterhouse, who had originally purchased the home for $10.5 million in 2020. Despite the transaction, the settlement process has not yet been finalized.
The ongoing legal issues began when Waterhouse sought to convert the street-level garage of the mansion into a self-contained dwelling. He attempted to use a development approval obtained by a previous owner in 2007, which had not been fully implemented. Woollahra Council initially approved the application, but the plans faced opposition from Mincong Huang, the owner of a neighboring property.
Huang’s lawyer, Graham McKee, argued that the proposed changes were significantly different from the original approval. He claimed that the new works would increase the visual bulk of the development and encroach further onto his property. This led to a lengthy legal battle that concluded recently when Justice Sarah Pritchard of the Land and Environment Court ruled that the 2007 development approval could not be used, as it had lapsed in June 2012.
Despite this ruling, the legal challenges surrounding the property continue. In 2023, Waterhouse initiated legal proceedings against Rothner’s ex-wife, accusing her of cutting down trees on a neighboring property. Both Rothner and his ex-wife have denied these claims. Rothner is currently countersuing, alleging that Waterhouse’s refusal to sign off on development applications has delayed renovations. The case is scheduled for a directions hearing before Justice Pike of the Supreme Court on July 18.
This is not the first time Waterhouse has been involved in legal disputes over properties. In 2019, he had a conflict with neighbors at a $3.5 million apartment in Darling Point, where he alleged that their dog, Fifi, was defecating on the harborfront lawn. His neighbor, Fay Cohen, wife of magician Black Jack Garry Cohen, applied for an apprehended violence order against him, which was later dismissed by a magistrate in September 2019.
Two years prior, Waterhouse lost a court battle over the height of trees at a colonial-era manor in Elizabeth Bay that he shared with his then-wife, Janette. After his neighbor claimed that the trees obstructed her view of the harbor, Waterhouse agreed to trim the cypress trees to within 40 cm of the garage roof’s height. Acting Commissioner of the Land and Environment Court David Galwey ruled that the tree needed to be pruned at least once a year.
These legal battles highlight the complex and often contentious nature of property ownership in high-value real estate areas. While the recent decision regarding the garage modification may provide some closure, it appears that Waterhouse will continue to face legal challenges related to his properties for the foreseeable future.
