Ex-Logan CEO Sharon Kelsey loses appeal in long-running legal battle over dismissal

A Queensland court has dismissed an appeal by a former Logan City Council chief executive, paving the way for seven former councillors to seek millions in compensation.

Former Logan City Council CEO Sharon Kelsey, top right, and clockwise ex councillors Laurie Smith; Russell Lutton; Steve Swensen; Steve Swensen; Cherie Dalley; Jennie Breene, Trevina Schwarz and Phil Pidgeon.

A former Logan City Council chief executive has lost an application for leave to appeal in her long-running case against her dismissal in the Industrial Court of Queensland this week.

Logan City Council’s former CEO Sharon Kelsey was terminated by the council in 2018, after seven councillors ruled against extending her probation, a decision she disputed in court.

The ruling, handed down by Deputy President John Merrell on Monday, brings to a close a protracted legal battle that has spanned seven years and numerous court proceedings.

In his order this week, Justice Merrell denied Ms Kelsey’s dismissal appeal in its entirety and refused her application to amend her appeal.

Former Logan City Council CEO Sharon Kelsey has lost an appeal in the Industrial Court. Picture: Courier-Mail

The court ordered further submissions on the costs of the proceedings, setting an initial deadline for submissions from the councillors at August 26.

Ms Kelsey has until September 16 to lodge her response to the cost claims but also has the right to seek to appeal this week’s decision in the Queensland Court of Appeal.

The case was brought after Ms Kelsey claimed her dismissal was unjust and alleged violations of the Public Interest Disclosure Act and the Industrial Relations Act.

She claimed her termination was retaliation for her public interest disclosure and for exercising her workplace rights.

After her dismissal, Ms Kelsey appealed to the Queensland Industrial Relations Commission to be reinstated.

Former Logan City Councillors Laurie Smith, Trevina Schwarz and Phil Pidgeon address a parliamentary committee about the CCC. Picture: Parliamentary TV

But she lost that appeal in April 2021, before taking her case to the Industrial Court, where Justice Peter Davis dismissed her application in May 2022.

That paved the way for Logan City Council, seven councillors and the former mayor to lodge submissions seeking costs, expected to be millions of dollars.

Ms Kelsey was then granted the right to challenge in the Supreme Court of Queensland and in November 2022, the court ruled she had the right to apply to Industrial Court Deputy president Merrell to review cost payments of her appeal.

Phil Pidgeon.

Former councillor Phil Pidgeon said this week’s decision was a major win for the seven councillors who were also subjected to fraud charges, which were all later dismissed, after being brought by the Crime and Corruption Commission.

“It’s a relief for me and my family but it’s a further nail in the coffin for the accountability of the Queensland CCC,” he said.

“We are yet to see an apology even though all the fraud charges were dismissed and we have been forced to lodge a Supreme Court action.”

Originally published as Ex-Logan CEO Sharon Kelsey loses appeal in long-running legal battle over dismissal