Class action on cards after NSW Liberal Party council poll catastrophe

A prominent Sydney lawyer is investigating a class action against the NSW Liberal Party on behalf of its 140 candidates for 16 councils who will not be able to contest next month’s local government elections after a spectacular administrative bungle.

Lawyer George Newhouse, a former mayor of Waverley, is seeking advice from barristers after receiving inquiries from furious, thwarted candidates, unable to contest the September 14 elections after their nomination forms missed Wednesday’s midday deadline.

Richard Shields has been sacked as NSW Liberal Party state director.Credit: Dion Georgopoulos

The NSW Liberal Party confirmed late on Friday it would refund the nomination fees for all 140 candidates. However, Newhouse said there could still be a claim on the grounds of lost earnings of councillor fees.

“This is at a very early stage, we are assessing our prospect of success with barristers,” he said.

The debacle has thrown the party into disarray, and prompted its state executive to sack Richard Shields as state director without compensation following a “tense” meeting that stretched late into Thursday night.

In an unprecedented bungle, the party failed to submit nomination forms for seven local government areas, including Northern Beaches, Lane Cove and Shoalhaven. In another eight LGAs, it only partially provided the necessary documentation.

In a statement on Friday, the Liberal Party said: “What occurred this week is simply not good enough. We recognise the frustration and disappointment this has caused our candidates, members and the broader community and we are moving forward with a comprehensive plan to make sure this never happens again.”

The Liberals have appointed party affairs manager Wilson Chessell as interim acting state director, a move that was critical to provide a returning officer for Saturday’s Epping preselection, to choose a candidate to replace former premier Dominic Perrottet.

Monica Tudehope, a former staffer to Perrottet and daughter of Liberal elder and upper house MP Damien Tudehope, is favoured to win.

In a statement after Thursday night’s meeting, released at 11.39pm, Liberal Party president Don Harwin said Shields had declined an opportunity to explain the disaster to state executive. The failure to “meet such a fundamental responsibility has rendered his position untenable”, Harwin said.

“As a result, the state executive has unanimously resolved to terminate the state director’s employment with immediate effect,” the statement said.

Multiple state executive sources who attended the meeting but were barred from speaking publicly about party matters described the meeting as “tense” after Shields arrived with HWL Ebsworth lawyer Kathryn Dent.

According to sources present, Shields walked out almost immediately after being told the meeting was being recorded. He was cajoled into coming back when the party conceded that minutes of the proceedings would be taken instead.

Reiterating his statement blaming Harwin for the fiasco, Shields said he deserved due process. However, party members believed his decision not to answer questions during the meeting demonstrated that answers would not be forthcoming even if an investigation were established.

The Liberal Party’s legal advice conceded that Shields might sue the party for unfair dismissal, but he would in effect be suing the holding group that sits above the party, Bunori Pty Ltd, and the party believed it would be very hard for him to prove he did not bring the party into disrepute given his responsibilities.

When asked what the worst-case scenario was for the party, Liberals’ lawyer Persephone Stuckey-Clarke argued that the monumental blunder was grounds for immediate termination, according to those privy to the advice.

Under those terms, the party believed it was not contractually obliged to provide Shields a payout.

The motion to sack Shields was passed unanimously.

Lane Cove Mayor Scott Bennison, who escaped the drama after losing preselection and nominating as an independent, said he felt vindicated and as though he had “dodged the bullet”.

“It was a bit like Bradbury, they just fell over,” Bennison said.

“[Liberal] head office are pretty useless at this sort of stuff. I’m surprised that they stuffed it up so badly, but I’m not surprised because they are so useless.”

Bennison was unsure whether he would contest the mayoralty if re-elected. He said he was concerned stability would be lost by a council that could have an increased representation of left-leaning independents and Greens.

“When I was Liberal mayor, we worked together to create stability in council, because there is a lot of instability and dysfunction. We need stability in Lane Cove Council because if not there’s a real possibility we will have an administrator in place.”

With Nick Newling

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