James Packer accused of breaking deal with former Crown security guard over legal fees

The billionaire and his former empire, Crown Resorts, are accused of failing to honour a $260,000 deal made with a former security guard.

09/01/20 Crown resorts owner James Packer in Melbourne. Aaron Francis/The Australian

A former Crown security guard who claimed to have been assaulted by James Packer is suing the billionaire and the gambling empire for $260,000 after accusing them of breaking a deal to pay his legal costs.Iskandar Chaban launched Victorian Supreme Court action in 2020, alleging Mr Packer verbally abused him, pushed him in the chest and threatened to sack him during an altercation at the Melbourne casino on New Year’s Day, 2016.

He said he failed to recognise Mr Packer, who controlled Crown at the time, and thought the billionaire might have been intoxicated.

Mr Chaban settled the case on November 17 last year, the day before it was to go to trial, for $100,000 plus his legal costs in a deal where Mr Packer, Crown and Mr Chaban’s employer, MSS Security, did not admit to doing anything wrong.

Iskandar Chaban is suing James Packer and Crown. Picture: Supplied.

However, Mr Chaban has now returned to the Supreme Court alleging that Mr Packer and Crown, which is now owned by private equity group Blackstone, have failed to pay him more than $185,000 in lawyers’ fees and an additional $77,000 in costs run up during the lawsuit.

He is not pursuing MSS Security for any costs.

The court has ordered the parties to attend mediation on December 20.

Mr Chaban’s lawyer, John Karantzis of Carbone Lawyers, declined to comment.

Mr Packer has been contacted for comment.

Crown Resorts said in a statement: “The matter was settled on a confidential, no admission of liability terms basis, which included a costs component upon which the court will now make a determination.

“There is no breach of the terms outlined within the settlement agreement.”

Mariah Carey and James Packer. Picture: Instagram

Mr Packer is the 26th-richest person in Australia, worth $3.6bn, according to this year’s Richest 250 list published by The Australian.

His assets include $280m luxury superyacht IJE, a polo ranch in Argentina named Ellerstina and a string of investments made through his private company, Consolidated Press Holdings.

He sold his controlling stake in Crown to Blackstone last year, reaping an estimated $3.3bn, after quitting all his executive roles at the company in 2018.

James Packer yacht IJE. Picture: Burgess

During his ownership, Crown was heavily criticised by a series of inquiries over scandals including the involvement of organised crime in groups that arranged visits by high-rolling gamblers, and its failure to stop money laundering taking place on its casino floors.

Mr Packer was executive chairman of Crown until just before Christmas, 2015.

James Packer’s polo property ‘Ellerstina’ in Argentina. Picture: Instagram

In his earlier case, Mr Chaban alleged he did not recognise Mr Packer when the billionaire approached the Melbourne casino’s main gaming floor at around lunchtime on January 1, 2016.

He told the court that Mr Packer was “verbally abusive and threatening”, ran towards him “pushing him in the chest” and threatened to sack him.

After the confrontation he was allegedly escorted to an office where Crown managers “abused, humiliated, intimidated and bullied” him.

The allegations were never tested in court because of the settlement deal.