Former Magna International Inc. Chief Executive Officer Belinda Stronach is rejecting claims of mismanagement made by her father Frank, saying she was instead trying to prevent him from pursuing “idiosyncratic and often unprofitable projects” that threatened the family fortune.

Belinda Stronach, a former Canadian lawmaker, is seeking about $33 million from her father, according to a statement of defense filed Monday in Ontario Superior Court of Justice. The amount includes funds “gifted” to Frank Stronach for his 2013 Austrian political campaign, and for a subsequent tax settlement with Austrian authorities.

The statement of defense and counter suit intensifies a feud that has torn apart one of Canada’s richest families. In October, Frank Stronach sued Belinda and individuals including Stronach Group CEO Alon Ossip for C$520 million, claiming mismanagement of the family fortune. None of the allegations have been proven in court.

Belinda Stronach “has engaged in no unlawful conduct. To the contrary she has taken steps to rectify the irregular affairs of (the group) she inherited from Frank,” according to her 78-page statement of defense, obtained by Bloomberg News. “She has paid particular attention to ensuring that TSG is operated in a manner that is to the benefit, rather than the detriment, of future generations.”

Passion Project

Frank Stronach’s failed “passion projects” amounted to about $850 million in investments over the years, according to a separate statement of defense filed Monday by Stronach Consulting Group. This includes $324 million on agriculture and $157 million on thoroughbred operations, according to the filing.

At the heart of the dispute “is a fundamental disagreement over the proper test to be applied to managing the business and affairs” of The Stronach Group, Belinda Stronach said in her statement of defense.

A separate statement of defense from Alon Ossip, an executive and trustee of the Stronach Group, paints a similar picture of a successful businessman who has lost his way.

“Today, at 86 years of age, Frank’s business judgement is not at all what it once was,” according to the claim. “His refusal to let go of his failing business ventures has become financially disastrous. These ventures, combined with his excess spending, have eroded the net worth of both his family and Alon.”

Bronze Statues

Among Frank’s “passion projects” were two bronze statues of a 12-story high Pegasus horse defeating a dragon that wound up costing $55 million, according to the statement. In all, these investments in golf courses, restaurants and farming have resulted in a net loss of $380 million for the group, according to the claim.

Frank’s October lawsuit represents “an attempt to force Stronach Group’s to fund Frank’s imprudent and, in some cases, fanciful schemes to the detriment of TSG and its stakeholders,” Belinda said in her filing. While successful in building up Magna, the elder Stronach “has also experienced significant failures in nearly all of his other non-auto parts business ventures and his political affairs.”

After a few years of working as a machinist in his native Austria, Frank Stronach arrived in Canada in the early 1950s with a few hundred dollars in his pocket and built Aurora, Ontario-based Magna into a company with revenue of $28.7 billion and net income of $1.1 billion by 2011 -- the year he stepped down as chairman. Magna, Canada’s biggest car-parts maker, had sales of about $40 billion in 2017.

Auto Ventures

Frank Stronach’s non-automotive businesses and investments included magazines and multimedia operations; a restaurant; a residential development at a ski resort; a tennis equipment company; thoroughbred racetracks; an energy drink company; as well as Austrian soccer league television and marketing rights.

Over time, Frank “began to engage in activities, many unauthorized, which placed the business and assets of TSG at considerable risk. These activities escalated to a point where they became a significant distraction for the management” of The Stronach Group, Belinda’s suit said.

In the original suit, Frank Stronach claims Belinda is starving his grass-fed cattle farm of financing, selling off assets over his objections while using company funds to bankroll an extravagant lifestyle of parties, vacations and limousine rides.

Frank Stronach and his wife Elfriede say their relationship with their daughter has suffered a “complete breakdown.” The lawsuit against her is a “last resort” after trying for 20 months to find a settlement, according to a 73-page statement of claim filed in a Toronto court on Oct. 1.

Stronach Group holds racetrack assets such as Santa Anita Park and Golden Gate Fields in California; Florida’s Gulfstream Park; and the Pimlico Race Course in Maryland. Under Belinda Stronach and Ossip, TSG is generating “significant positive cash flow,” Belinda Stronach said.

Stronach Group also has an agriculture unit, which includes Adena Farms, a grass-fed cattle ranch located in Florida. The unit was unprofitable under Frank’s direction, according to Belinda’s lawsuit.

The billionaire family feud is good for business at Toronto’s biggest law firms. Blake, Cassels and Graydon are working for Belinda. Davies, Ward, Phillips and Vineberg are on for Frank; Ossip is represented by Osler, Hoskin and Harcourt; Goodmans is working for Belinda’s children and Torys is with Stronach Consulting.