Mal Hemmerling dispute contributes to extra $400,000 legal costs for Playford Council
Playford Council ratepayers are facing unexpected legal costs of $400,000, most of which involve the controversial sacking of former chief executive Mal Hemmerling.
North & North East
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Playford Council ratepayers are facing unexpected legal costs of $400,000, most of which involve the controversial sacking of former chief executive Mal Hemmerling.
Mr Hemmerling is seeking damages of $348,995 over the termination of his $372,978-a-year contract by elected members last December.
Councillors voted unanimously to dismiss Mr Hemmerling after receiving reports which detailed allegations of sexual harassment and workplace bullying.
The reports were compiled by lawyers from two Adelaide legal firms and a Melbourne-based human resources consultancy, Peacemaker.
Financial updates provided to elected members show the council — which has debts of $138 million — is expecting to pay $400,000 in unexpected legal costs this financial year.
Most of this is likely to involve legal advice provided to elected members in written reports and verbal briefings presented to confidential meetings which discussed Mr Hemmerling.
Various consultants have been used by council over the past 12 months, including two firms engaged by Mr Hemmerling to conduct reviews of its senior management.
The Independent Commission against Corruption (ICAC) this week announced it would conduct an evaluation of the council’s policies and procedures, which will likely create extra legal bills.
Playford already is spending a substantial amount of money defending itself in the Supreme Court against legal action taken by Mr Hemmerling.
The case returned to court on Friday, where Justice Martin Hinton was told Mr Hemmerling had dropped an initial bid for a judicial review over his suspension by councillors 12 days before last November’s council elections.
His lawyers have argued the suspension was illegal because decisions about the employment of council chief executives could not be made during caretaker mode for local government elections.
The litigation had since been changed to a common law claim for damages, which requires compulsory mediation before trial.
Lawyers for Mr Hemmerling and Playford Council told Justice Hinton they were attempting to find a mediator before the beginning of next month.
Sam Abbott, QC, for Playford, said their attempts so far had been unsuccessful.
“We are running out of options,” he said.
“A significant number of mediators have been proposed and they are either unavailable or not agreeable to one or other of the parties.”
Justice Hinton said he would attempt to organise a court-appointed mediator if the situation could not resolved.
The matter was adjourned until a date to be fixed.
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