Huge toll as South Australian Jockey Club court action against high-profile members ends in stalemate
Court action by the SAJC taken against several high-profile members has ended in stalemate and huge financial costs. The news comes as one of the defendants died this week from an illness that friends say was hastened by stress over the case.
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Court action by the South Australian Jockey Club taken against several high-profile members has ended in stalemate and hefty legal bills for both sides.
The news comes as one of the four defendants sued – for allegedly revealing details of the SAJC’s controversial proposal for a $400m housing development at Morphettville racecourse – died this week from a cancer-related illness.
Friends of Anne Harrison, the wife of former SAJC board member Kevin Harrison, but not a club member herself, say her death was hastened by stress caused by the year-long court case.
The SAJC began legal action last September against the Harrisons and club life members Joe Cannizzaro and Bill Spear, alleging the “unauthorised misuse and disclosure of confidential board information.”
The SAJC claimed Mr Harrison passed on confidential information to Mr Spear and Mr Cannizzaro despite explicit board instructions not to do so.
Mr Harrison argued he looked to the two highly experienced former racing administrators for advice as was his right and duty as a director.
In court documents, Mr Harrison said he was concerned about the club’s expenditure on proposals to build 1000 houses at Morphettville and the subsequent reduction in the SAJC Investment Fund set up from the $85m sale of Cheltenham racecourse in 2009.
Most of the legal deliberations in the District Court were held behind closed doors and away from public scrutiny.
An affidavit signed by SAJC CEO Grant Mayer, detailing the SAJC’s claims and described as being “more than a foot high” was sealed by the court.
The Harrisons, Spear and Cannizzaro filed defences denying any breaches of confidentiality.
The secrecy surrounding the court case will continue under a confidentially clause signed to settle the legal action but The Advertiser is aware that both sides will pay their own costs.
Total legal costs are estimated at more than $700,000.
The SAJC’s statement of claim revealed that the club was not seeking any damages from the defendants.
It sought “remedies” including that Mr Harrison should concede he breached the Associations Incorporations Act as well as the club’s Code of Conduct and that the other three defendants should concede they received confidential board information.
A prominent SAJC club member, who asked not to be identified, said the “episode” needed to be better explained to the membership.
“SAJC members should be asking the board: ‘What has this all been about and has it been worth the cost’?” they said.
“In fact, what are the costs? Members need complete openness to make our own assessment on the board’s actions.”
Mr Spear, widely regarded as the ‘saviour’ of the SAJC for exposing a scandal around a rigged board election more than a decade ago, remains in extremely poor health following cancer removal surgery earlier this year.
In May, the State Government approved the rezoning of land between the racecourse entrance and Anzac Highway, including the site of The Junction Hotel, paving the way for an extensive redevelopment of accommodation and businesses up to 12 storeys.
