McGrath brothers Holden grudges

The brothers who made their fortune on the string of McGrath car dealerships are fighting over how to split their empire. The tussle between Robert 63, and John, 57, has become so bitter that a judge described their relationship as "poisonous and suspicion-laden'' after he intervened.

The McGrath brothers began working in their father Bert's business in the early 1980s when it was one of western Sydney's largest Holden dealerships. Bert McGrath spent 50 years building the business from when he qualified as a mechanic in the 1930s and leased a garage at Liverpool in 1938.

At its peak it had 15 dealerships, including showrooms in Liverpool, Sutherland and Blacktown. A large slice was sold in 2006 when the sharemarket-listed Automotive Holdings Group paid $67 million in cash and shares.

In November, 2010, Robert, who lives in a waterfront mansion in Hunters Hill with his wife Lucille, agreed to buy John's share of the property portfolio. The pair are splitting 20 commercial properties, including former car yards and service stations, worth up to $50 million.

But the sale has been riddled with problems, exacerbated by mistrust and acrimony. Robert has conceded he acted unreasonably in not allowing John access to the books and records of the McGrath Group before Christmas. Meanwhile, John, who lives in Canberra where he runs several dealerships, has refused to agree to appoint a valuer to the group.

Supreme Court Judge Michael Pembroke ruled on June 1 that John McGrath should allow an expert valuer to assess the value of the property portfolio and ruled that Robert should give John copies of the financial accounts of several companies.

The properties are in Strathfield, Burwood, Blacktown, Campbelltown, Kirrawee and Moorebank. The sale comes when the car industry is in the doldrums, with the collapse of the Rick Damelian empire last year and the wafer-thin profit margins for many of those remaining.