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Dentons distances itself from CEO Doug Stipanicev in ‘curious’ legal strategy

The international law firm claims its Australian chair Doug Stipanicev wasn’t acting on behalf of the company when conducting inquiries into the alleged misconduct of a former property partner, the Federal Court has heard.

Former Dentons Australasia chief executive Doug Stipanicev.
Former Dentons Australasia chief executive Doug Stipanicev.

International law firm Dentons claims its Australian chair Doug Stipanicev was not acting on behalf of the company when investigating the alleged misconduct of a partner, the Federal Court has heard, in a “curious” attempt to try distance itself from the firm’s local chief.

The court on Thursday morning held a brief hearing for a bombshell case filed by former property partner Guy Albeck against the firm and its Australasian chief executive and chair Doug Stipanicev, in which he alleges Mr Stipanicev forced his resignation after he made multiple complaints of bullying against another partner.

He also claims Mr Stipanicev emailed him a report written by a US doctor which contained claims that Covid-19 vaccines contain “living organisms with tentacles and self-assembling ­nanobots” and argued a “criminal network of satanists”, including a well-known Jewish banking family, “rule the world”.

Dentons and Mr Stipanicev have filed separate defences against Mr Albeck’s claims.

Mr Albeck’s lawyer on Thursday accused Dentons of attempting to “kick this proceeding down the road” by forcing it into the “never-never” of mediation which would be a “waste of costs for both sides”.

But judge Michael Wheelahan made orders that the parties proceed to mediation prior to Christmas. If mediation is unsuccessful, the matter will be heard at trial in May next year.

In court documents first obtained by The Australian, Mr Albeck claimed he made multiple complaints of bullying against Dentons litigation partner and former board member Kon Tsiakis over a three year period.

Although an HR director found eight of Mr Albeck’s bullying allegations were substantiated, Mr Stipanicev told Mr Albeck he had “engaged in conduct less than what is expected from a partner” and had “damaged the culture of the Melbourne office”.

After conducting inquiries with Dentons employees, Mr Stipanicev wrote to Mr Albeck alleging five instances of serious misconduct. He directed Mr Albeck to resign, saying otherwise the alleged misconduct would be referred to the Dentons board with a recommendation to terminate his employment.

Former Dentons property partner Guy Albeck. Picture: LinkedIn
Former Dentons property partner Guy Albeck. Picture: LinkedIn

Mr Albeck said although the letter was not accompanied by any evidence, he believed if the matter was referred to the board he would likely be dismissed. As such, he resigned on June 9 last year.

But during Thursday’s case management hearing, Justice Wheelahan said it was “curious” that Dentons claimed it did not know about Mr Stipanicev’s decision to conduct inquiries about Mr Albeck with Dentons employees, questioning why the firm was unaware of the actions of its chair.

“That struck me as a very curious pleading,” Justice Wheelahan said.

He continued: “The starting point is that Dentons pleads that he does not know what the chairman of its board did ... you’ll be bound by that pleading at the trial.”

Dentons’ barrister Kunal Sharma defended the firm against that characterisation.

“The fact that he is the chair does not mean that we know what Mr Stipanicev has done in relation to and in circumstances where he’s represented separately and is filing a separate defence,” he said.

Mr Albeck’s barrister Joel Fetter said he was “quite puzzled” by Dentons’ claims that Mr Stipanicev was not acting on behalf of the firm when he made the inquiries about Mr Albeck, despite sending a letter in relation to the inquiries on Dentons letterhead.

“It’s denied that in doing any of those things he’s acting on behalf of Denton’s and we are quite puzzled by that,” he said.

Mr Fetter told the court his client was “unhappy” that Dentons and Mr Stipanicev “are simply playing games” by filing a last minute request for mediation.

“My client ... is taking the proceeding seriously. He wants access to justice. He wants a determination,” Mr Fetter said. “His concern is that the respondents, as I said, are simply playing games and kicking this matter down the road as long as they can.”

However, Justice Wheelahan was adamant “there will be a court mediation before the trial”.

Dentons and Mr Stipanicev have filed separate cross-claims in relation to the matter.

Mr Stipanicev on Wednesday issued a statement rejecting Mr Albeck’s claims and saying he “abhors” comments made by the US doctor in the conspiratorial report.

The case continues.

Ellie Dudley
Ellie DudleyLegal Affairs Correspondent

Ellie Dudley is the legal affairs correspondent at The Australian covering courts, crime, and changes to the legal industry. She was previously a reporter on the NSW desk and, before that, one of the newspaper's cadets.

Original URL: https://www.theaustralian.com.au/business/legal-affairs/dentons-distances-itself-from-ceo-doug-stipanicev-in-curious-legal-strategy/news-story/55cf8f44617b54181a6be9556e3fb4d6