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By Ainslie Drewitt-Smith

Archibald winner claims stepdaughter influenced 'vulnerable' wife to withdraw $2m from account

Australian artist John Olsen has been described as an Australian living treasure.

Australian artist John Olsen has launched legal action against his stepdaughter, saying she influenced her dying mother to misappropriate more than $2 million of their money.

The 91-year-old argues Karen Howard Mentink obtained the money by reason of undue influence over her late mother, Katherine Howard Olsen, and is liable to pay the funds.

Mrs Olsen died from cancer in December 2016 after 27 years of marriage to the renowned painter.

Mr Olsen's Supreme Court hearing started on Monday at Moss Vale in the New South Wales Southern Highlands region, south of Sydney, before Justice John Sackar.

In documents tendered to the court, Mr Olsen stated his late wife had "suffered from cognitive impairment".

He said his wife was vulnerable at the time her daughter requested she withdraw more than $2.2 million from a bank account in October 2016.

Documents show the account was one of four linked to a business operated by both Mr Olsen and Ms Mentink.

During cross-examination of the 2005 Archibald Prize winner, Ms Mentink's lawyer Raoul Wilson SC asked if "despite failing health, [Katherine] had a sound mind" in deciding to sign off on her daughter's withdrawal request.

Mr Olsen replied "in hindsight, no".

When asked if he "no longer regarded Karen as part of the family" he told the court that statement was "correct".

When he was questioned about his son Tim and daughter Louise, he said they were not involved in the decision to launch legal action against their stepsister.

Mr Olsen said he never discussed the matter with them.

When questioned, his daughter Louise confirmed she had a fractured relationship with her late stepmother.

She admitted to removing photographs of Ms Olsen from the living room and other spaces in her father's Glenquarry home following her stepmother's death.

"I believe my father and I did so together," she said.

Ms Mentink, who denies the allegations of undue influence, will take the stand today.

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