Billionaire Clive Palmer’s legal shots at ex-ASIC chair thrown out

The Federal Court has thrown out billionaire Clive Palmer’s legal fights against James Shipton, ex-chair of Australia’s corporate cop.

Two cases against Mr Shipton, one brought by Mr Palmer and the other by his company Palmer Leisure Coolum, have now been dismissed. Picture: AAP Image/Lukas Coch

The Federal Court has thrown out billionaire Clive Palmer’s legal fights against James Shipton, ex-chair of Australia’s corporate cop.

Mr Palmer has been targeting Mr Shipton and the regulator for years, alleging the former Australian Securities & Investments Commission boss engaged in “public misfeasance” amid major criminal cases ASIC has pursued against him.

But on Friday, Federal Court judge Stewart Anderson said Mr Palmer failed to “substantiate the serious allegations brought against (Mr Shipton)”.

“I am satisfied that the (updated court filings) do not plead any specific conduct … capable of constituting the tort of misfeasance in public office,” he said.

Mr Shipton welcomed the news and said he was “pleased, but not surprised, by the court’s ­emphatic rejection of Mr Palmer’s assertions”.

“Mr Shipton’s position throughout – that these proceedings had no tenable basis in fact or in law – has been vindicated by this judgment,” Mr Shipton said via a statement from his lawyers.

Two cases against Mr Shipton, one brought by Mr Palmer and the other by his company Palmer Leisure Coolum, have now been dismissed, and Mr Palmer has been ordered to pay the former regulator’s costs.

Former ASIC chairman James Shipton. Picture: Aaron Francis

Mr Palmer had been chasing Mr Shipton for damages worth $3.5m, despite his rank at No.6 on The Australian’s Richest 250 list and valuation of $22bn.

Before a federal election was called for May 3 on Friday, the former politician launched a new political party in February called Trumpet of Patriots party, inspired by Donald Trump.

He said he sent a letter to Mr Shipton in 2019 complaining of “improper influence over ASIC officers” and the conflicts of interests allegedly held by ASIC officers. One matter Mr Palmer had concerns about was the Coolum Resort prosecution, which kicked off in April 2018 and led to the billionaire being charged with breaching the law during a proposed takeover of The President’s Club.

Justice Anderson said Mr Palmer’s arguments in his court documents are “difficult to follow”, despite having three attempts to put his case forward.

“The applicants seek to impugn the respondent’s (Mr Shipton’s) ‘conduct’, largely by reference to his role as chairman of ASIC,” he said.

“To the extent the respondent’s conduct is specifically identified by the applicants, the applicants’ claim still seeks to attribute acts and knowledge of various ASIC officers in order to impugn the respondent’s conduct.

“Without being in a position to plead what particular role the respondent actually played in the underlying conduct, the applicants appear to have little other basis on which to substantiate the serious allegations brought against the respondent.”

Clive Palmer addresses the National Press Club in Canberra. Picture: Martin Ollman/NewsWire

Mr Palmer had complained in his letter, addressed to Mr Shipton, that ASIC did not investigate correspondence between The President’s Club and with ASIC in 2015-16, in which “TPC sought for ASIC to take enforcement action against the applicants in relation to the applicants’ failure to make an offer to purchase shares in TPC”.

As well, Mr Palmer complained a “representative of (The President’s Club) said that they ‘had a mate in ASIC’.”

But Justice Anderson said it was not clear in court documents what Mr Palmer was claiming Mr Shipton had done wrong.

“(The documents) do not identify with any precision, or at all, what it is that the respondent has done personally either by an act or omission that was invalid, unauthorised, or beyond power,” he said.

“The applicants’ underlying grievance is that ASIC’s complaints against the applicants are unmeritorious, and that ASIC was unduly influenced by TPC.

“Again, the key basis for the claim brought against the respondent is the letter written by Mr Palmer on 30 September 2019, which was addressed to the respondent.

“It is important to note that Mr Palmer addressing the letter to the respondent is, in truth, the only substantive hook by which the applicants seek to implicate the respondent in ASIC’s handling of Mr Palmer’s letter.”

Mr Palmer was contacted for comment.

Originally published as Billionaire Clive Palmer’s legal shots at ex-ASIC chair thrown out