Fab 7, ex-mayor lose Supreme Court appeal paving way for Kelsey case to proceed

Logan City Council’s sacked mayor and seven ex-councillors will have to pay court costs to a former council CEO after they lost an appeal to stop her industrial relations case proceeding.

Former CEO of Logan City Council Sharon Kelsey who was sacked from Logan City Council in February 2018. AAP Image/Josh Woning

LOGAN City Council’s sacked mayor and seven ex-councillors have lost an appeal to stop an industrial relations case involving a former council CEO from proceeding.

Supreme Court Judges Philip Morrison, Anthe Philippides and Susan Brown dismissed the group’s appeal to stop a court hearing brought by former Logan Council CEO Sharon Kelsey.

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The judges ordered the eight former councillors to pay Ms Kelsey’s costs.

The group, known as the Fab 7 along with the ex-mayor Luke Smith, wanted Ms Kelsey’s case to be halted for fear of prejudice while they faced separate fraud charges.

Ms Kelsey was contacted for comment and the total costs were unknown.

The decision, handed down the day before Logan City Council elections, paves the way for the continuation of the Kelsey case which is before the Queensland Industrial Relations Court.

Ms Kelsey brought her industrial relations case after her tenure as CEO at the council was terminated by a council vote in February 2018.

The former seven councillors and mayor were arrested by Crime and Corruption Commission officers and charged, under s 408C of the Criminal Code 1899, with fraud on Friday, April 26 last year.

The seven councillors who launched the appeal are Laurie Smith, Trevina Schwarz, Phil Pidgeon, Steve Swenson, deputy mayor Cherie Dalley, Russell Lutton, and Jennie Breene.

The former mayor Luke Smith was also part of the unsuccessful appeal.

The charges against the eight were that between October 9, 2017 and February 8, 2018 they dishonestly caused a detriment namely the dismissal from employment to Sharon Rae Marie Kelsey and the detriment was of a value of at least $100,000.

The Supreme Court: Court of Appeal has dismissed an appeal by seven former Logan City Councillors and ex mayor.

In their findings, the Supreme Court Appeal Court judges referred to previous decisions in the Industrial Relations Commission and later in the Industrial Court which both refused the group’s appeal to stop the Kelsey case.

QIRC Deputy Commissioner Daniel O’Connor dismissed the Fab 7’s first attempt to delay the case on June 4.

In his decision, Justice O’Connor said he could not grant a stay in proceedings as it “would be probable that Ms Kelsey’s contract of employment, which expires on 25 June 2021, would expire before these proceedings are determined”.

He said if proceedings were delayed, Ms Kelsey would lose the chance to demonstrate to a new council, once elected, that she ought to be awarded a second contract.

A further appeal to the Industrial Court in July resulted in Justice Glenn Martin dismissing the group’s second attempt before the Supreme Court Court of Appeal attempt was lodged.