Billionaire Clive Palmer claims ‘public misfeasance’ against ASIC and its ex-boss in court filings

The businessman is continuing to wage war against the corporate regulator’s former chair James Shipton, amid multiple ongoing court fights.

Billionaire businessman Clive Palmer is suing the former chair of Australia’s corporate regulator James Shipton amid claims of public misfeasance, and wants $3.5m in damages.

Mr Palmer, who last financial year reaped almost $447m — about $1.2m per day — in mining royalties, launched legal action against Mr Shipton personally in the Federal Court on Tuesday.

While the damages he is seeking from Mr Shipton, the ex-chairman of the Australian Securities and Investments, are relatively paltry for Mr Palmer, the ebullient Queensland billionaire used emotive language to describe the toll the decade-long matter has taken on him.

Former ASIC chair James Shipton is being sued by Clive Palmer. Picture: Tracey Nearmy/Getty Images

Mr Palmer, worth an estimated $21.92bn in the latest edition of The List – Australia’s Richest 250, said he “has suffered loss and damage, namely economic loss … calculated to exceed $3.5m” due to Mr Shipton’s failure to “discharge the office of the Chair of ASIC”.

The sum is justified, Mr Palmer claimed, as the conduct of Mr Shipton has caused loss and damage which is “very serious and grave”.

The latest legal move by Mr Palmer, who has previously boasted litigation as one of his hobbies, is one of several matters he has, or is planning to have, before the courts.

Financial accounts for Mr Palmer’s private company Mineralogy show a contingent asset on its balance sheet related to court action it is taking against Chinese conglomerate CITIC, which pays him royalties relating to the Sino Iron operations in the Pilbara in Western Australia.

Mineralogy has estimated the claim related to the case could be worth more than $2.67bn to Mr Palmer.

Mineralogy’s accounts did not mention an estimated $US200bn damages claim against Australia over a case about stalled iron ore projects, and previous emergency legislation passed by the WA state government.

While Mr Palmer’s claim against Mr Shipton pales in comparison financially, the billionaire former politician claimed he was seeking damages from Mr Shipton “for failing to perform the functions of public office”.

“James Shipton, while serving as ASIC chairman, clearly acted beyond his authority, and acted untruthfully,” Mr Palmer tweeted.

An ASIC spokesman said the regulator was made aware of the proceedings but had not seen the details of Mr Palmer’s claim.

“In circumstances where it appears that the allegations relate to Mr Shipton as a former ASIC official, ASIC stands with Mr Shipton. ASIC will look to provide appropriate support to Mr Shipton,” he said.

“We note the proceedings commenced by Mr Palmer yesterday are separate from the ongoing criminal proceedings in the Magistrates Court of Queensland against Mr Palmer and Palmer Leisure Coolum Pty Ltd, prosecuted by the CDPP.

“These proceedings were filed in February 2018 and February 2020. ASIC’s investigation into Mr Palmer and Palmer related parties was underway prior to Mr Shipton joining ASIC in February 2018.”

Mr Palmer has been targeting Mr Shipton and the Australian Securities & Investments Commission for years, amid two major criminal cases ASIC has pursued against him.

One relating to the Coolum Resort prosecution, which kicked off in April 2018, saw Mr Palmer charged with breaching the law during a proposed takeover of The President’s Club.

Mr Palmer’s company Palmer Leisure Coolum was also charged over a proposed takeover which ultimately did not go ahead.

ASIC claimed Palmer Leisure Coolum publicly proposed to make a takeover bid for securities in The President’s Club but did not make good on the promise within two months as required.

The other matter Mr Palmer has been fighting is the ‘Cosmo prosecution’ relating to charges made by ASIC against Mr Palmer’s political party, the Palmer United Party.

Mr Palmer was charged in 2020 after ASIC alleged between August 5 and September 5, 2013, Mr Palmer dishonestly obtained a benefit for Cosmo Developments Pty Ltd and/or the Palmer United Party by authorising the transfer of $10m contrary to the purpose for which the funds were being held.

ASIC also alleged between August 31 and September 3, 2013 Mr Palmer dishonestly obtained a benefit for Media Circus Network Pty Ltd and/or the Palmer United Party by authorising the transfer of $2.1m contrary to the purpose for which the funds were being held.

It’s understood Mr Palmer’s latest legal claim relates to these two cases, which are both still before the court.

Mr Palmer has tried multiple times to have the criminal charges thrown out against him, ultimately failing at every step.

In February this year, three Queensland Supreme Court judges ruled his complaints stating the cases were an “abuse of process” were “factually undeveloped and factually contentious”.