The trustee, executor and sole beneficiary of Mr Bachop's estate was named as the defendant in the council's statement of claim.
A copy of the claim, released to the Otago Daily Times yesterday, showed the council wanted $1,250,780 in damages, plus interest and other costs, from Mr Bachop's estate.
The statement was filed with the High Court at Dunedin in December last year, but remained before the courts, it was confirmed yesterday.
The action, while in the name of the Dunedin City Council, is understood to have been taken over by its insurer QBE. The Otago Daily Times understands the insurer, having paid out a claim by the council for its loss, is entitled to take over the recovery proceeding in the council's name.
Dunedin Mayor Dave Cull and council chief executive Dr Sue Bidrose would not comment about the claim yesterday.
Council group chief financial officer Grant McKenzie would only say the council was ‘‘working with its insurers'' and, because the matter remained before the courts, ‘‘we will be making no further comment at this stage''.
The claim followed the discovery of the $1.5 million Citifleet fraud in May last year, followed days later by the sudden death of Mr Bachop on May 21.
He was later found by Deloitte and police to be at the centre of a fraud involving the sale of 152 council vehicles, and the pocketing of proceeds, over more than a decade.
Despite the $1 million insurance payout, the council was left $912,000 out of pocket, including legal and investigation costs.
The statement of claim said Mr Bachop was authorised to buy and sell council vehicles while accounting for all proceeds to the council.
He is alleged to have breached his obligations by selling vehicles to friends, family, other council employees, motor vehicle dealers and other third parties, for ‘‘significantly less'' than wholesale values.
The purchase of a Suzuki trail bike, for $7333, using council funds, and using council fuel cards to accrue more than $102,000 in personal petrol purchases, added to the bill.
Mr Bachop is said to have ‘‘breached his fiduciary duty'' to the council by acting ‘‘dishonestly, fraudulently and with the intention of obtaining a financial advantage''.
As a result, the council sought damages, interest and other costs, as well as the sale of all property acquired ‘‘by virtue of Mr Bachop's unlawful actions''.
The action has been adjourned to be called in the High Court at Dunedin in February.
