Victorian taxpayers to be slugged millions of dollars for ‘Slug Gate’ trial

Victorian taxpayers will be slugged millions of dollars in legal costs after I Cook Foods claimed victory over the Department of Health in the ‘Slug Gate’ trial.

I Cook Foods won its Supreme Court battle to have the closure of the business by then-acting chief health officer Brett Sutton declared invalid.

Victorian taxpayers are set to fork out millions of dollars in legal costs after I Cook Foods claimed victory over the Department of Health in the ‘Slug Gate’ trial.

Ian Cook’s catering company last month won its Supreme Court battle to have the closure of the business by then-acting chief health officer Brett Sutton declared invalid.

But in a “bittersweet victory”, the company’s claim for $50m in damages was dismissed.

However, the Supreme Court on Thursday ordered the state government to pay the majority of I Cook Food’s costs following the 10-day civil trial.

And in a blow to the state government, the court did not order I Cook Foods to pay any of the costs racked up by the Department of Health.

Ian Cook says the money spent on the trial has enriched the government lawyers who lost the court case. Picture: Jake Nowakowski

Mr Cook told the Herald Sun the state government “burnt through millions of taxpayer dollars on a losing case”.

“Everything I did, the government did twice over,” he said.

“Their total costs would have to be north of $2m.

“That’s money that could have compensated my former workers and my family.

“Instead, it’s money that has enriched the government lawyers who lost the court case.”

I Cook Foods was shut down by Professor Sutton on February 21, 2019, after it allegedly supplied a contaminated sandwich to an elderly hospital patient who later died with a Listeria infection.

Justice Michael McDonald found the Department of Health “failed to observe the requirements of procedural fairness” when it made the shutdown order, which forced the Dandenong South business to immediately cease production and destroy stock.

A variation order two days later, on February 23, was also declared invalid.

Justice McDonald said prior to making the February 21 order, Professor Sutton “sought advice from a senior departmental lawyer” but “did not receive advice that he was subject to any obligation to observe the requirements of procedural fairness”.

This made the orders “invalid and of no legal effect”.

But I Cook Food’s claim for damages was dismissed because Justice McDonald deemed there was “no misfeasance in public office”.

I Cook Foods was shut down by Professor Brett Sutton in 2019 over an allegedly contaminated sandwich. Picture: Google

The Department of Health argued I Cook Foods should pay its costs on an “indemnity basis” from September 18, 2020, which was the date it offered to settle the proceeding with the catering company “on the basis the proceeding be dismissed and each party bear their own costs”.

“I Cook Foods failed to obtain a result in the proceeding more favourable than that contained in the … offer,” it said, referring to the dismissal of its damages claim.

But Justice McDonald rejected this argument, arguing the company “succeeded” in its case by having the orders declared invalid.

“This is a more favourable outcome than that contained in the … offer,” he said.

“The declaration as to the invalidity of the order provided I Cook Foods with vindication that it had been subject to a wrong done to it by a public office holder.”

I Cook Foods has accused one of its health officers of planting a slug at its factory.

It comes as I Cook Foods launches fresh legal action against Greater Dandenong City Council and its staff, personally accusing one of its health officers of “planting” a slug at its factory.

It alleges a council worker “brought the slug on to the I Cook Foods premises and placed it on the floor of the main food preparation area” days before it was forced to shut.

The writ – obtained by the Herald Sun – accuses the council of “malicious prosecution” and claims the slug was a “key criterion” it relied upon in May 2019 when it slapped Mr Cook and his business with nearly 100 criminal charges.

“When will governments just do the right thing, admit when they are wrong and compensate the people they have injured?” Mr Cook said.

He last month ran as an independent in the Mulgrave by-election, but lost to Labor who will retain the seat held by former premier Daniel Andrews.

The Department of Health has been contacted for comment.