Multimillion-dollar Supreme Court claim lodged after Logan council debacle

Seven former Logan City councillors have filed a multimillion-dollar Supreme Court claim for damages against the state government, three years after they were exonerated of fraud charges.

Seven former Logan City councillors have filed a multimillion-dollar Supreme Court claim for damages against the state government, three years after they were exonerated of fraud charges. Picture: AAP/Darren England

Seven former Logan City councillors have filed a multimillion-dollar Supreme Court claim for damages against the state government, three years after they were exonerated of fraud charges.

Known as The Fab 7, former councillors Jennie Breene, Cherie Dalley, Russell Lutton, Phil Pidgeon, Trevina Schwarz, Laurie Smith and Steve Swenson, lodged their damages claim last week with an amended statement of claim heard before the Supreme Court on Friday. (April 19)

There was a three-year statute of limitations for compensation which expired on April 14.

It is believed the updated claim was lodged a week ago after the Crime and Corruption Commission refused to acknowledge aspects of an original claim.

The Logan 7’s Supreme Court application calls for compensation for reputational damage and also for malicious prosecution among other claims.

It also calls for acknowledgment that the CCC breached its duty to remain independent and impartial during its “bungled” 2019 probe into the Logan council.

Today’s court application follows a bitter five-year legal wrangle after the seven, plus the former mayor Luke Smith, were charged by the Crime and Corruption Commission with fraud in April 2019.

After the seven councillors and former Mayor Luke Smith were charged by the CCC, the council was unable to form a quorum forcing the then Local Government Minister Stirling Hinchliffe to dismiss all 13 councillors.

The fraud charges against the eight were withdrawn in April 2021 after prosecutors told the Brisbane Magistrates Court there was “no evidence” to continue with the case.

The fraud charges were related to the then council’s decision to terminate the employment of the then council chief executive Sharon Kelsey, who was on probation.

Former Logan council CEO Sharon Kelsey. Picture: NCA NewsWire / Dan Peled

The seven councillors had three years to make the claim from the day the Director of Public Prosecutions withdrew the fraud charges against them.

Former Logan councillor Phil Pidgeon said today’s Supreme Court claim followed findings from an independent Parliamentary Inquiry and from the Fitzgerald 2.0 Inquiry, which both found the crime watchdog had acted improperly, failed to act impartially and acted outside the CC Act when charging the seven with fraud.

“Despite two independent inquiries, we have still not been compensated and there has been no apology even though we lost our jobs and our lives have been destroyed,” Mr Pidgeon said.

“Both inquiries found we had been treated badly but five years on, this still has not been resolved.

“This is not only about the compensation for us as former councillors it’s also about an apology after the lives of our families have also been shattered.

“My wife and I moved out of Logan because of the trauma and so have some of the others who have suffered because their reputations have been ruined.

“As a group, the councillors have been acting in good faith with the CCC to progress our case and get an outcome.

“The CCC has led us along like a horse on a lead to a dam with no water.

“Even though we did nothing wrong and the charges were dropped, we have suffered immeasurably and we and our families still are.”

The CCC was contacted for comment and asked why the case was continuing after three years despite a Commission of inquiry and a damning parliamentary inquiry.

Originally published as Multimillion-dollar Supreme Court claim lodged after Logan council debacle