The real, much wittier, star of the Aston defamation trial: Justice Michael Lee
Keen watchers of the Elaine Stead versus Fairfax Media trial will no doubt have pulled the popcorn out over the past week as Federal Court judge Michael Lee presided over evidence regarding selfies, financial reports and more feet than we would like to mention.
But while barristers Sue Chrysanthou and Sandy Dawson have largely held the floor, it is Lee himself who has taken a starring role in proceedings.
With references to films such as Anchorman II or the 1984 mockumentary This is Spinal Tap, he hasn’t shied away from adding a few theatrics to the Sydney courtroom or in demonstrating a grip on the English language no doubt Aston would seek to emulate.
If only Lee had continued with his foray into journalism after being a copy boy at Fairfax, perhaps Aston may have had the chance.
Such is Lee’s style though, well known in the legal sphere, but for the first time beamed to viewers outside of the courtroom due to COVID-19.
In fact, Lee’s inclination towards language and the stage saw him serve two years on the board of John Bell’s Belle Shakespeare theatre company in the early 2000s, well before he was selected as a Federal Court judge.
That promotion was more recent, in April of 2017, and presided over by peers such as former senator George Brandis SC, now the High Commissioner to the UK, and then NSW Bar president Noel Hutley QC — who Margin Call notes has been called in to defend James Packer’s Crown Resorts.
In a speech marking the occasion, Lee noted that he had worked in a monastery as his first job, followed by a role as copy boy at Fairfax — an experience he said “made me somewhat wary of journalists”.
Little did he know.
Brandis was glowing of his peer, noting Lee “eloquently demonstrates that the legal tradition in Australia still retains a degree of thespian flair”.
He added that he wouldn’t be surprised if Lee’s judgments developed “something of a cult following, at least among aficionados of the idiosyncratically erudite; not a small constituency in the legal profession”.
With the plethora of Microsoft Teams participants already tuning in, we would hazard a guess he’s well on his way to cult status.
Just Google it
In an embarrassing mix-up, AFR journalist Joe Aston took the day off from judge Michael Lee’s Federal Court on Wednesday, but venture capitalist Elaine Stead’s defamation case against the reporter and his employer Nine rolled on regardless as proceedings entered their final days.
Lawyers for Stead attempted to have an article admitted from Aston’s long-time Australian Financial Review colleague Carrie LaFrenz that highlighted the success of one of Blue Sky’s more successful investments, Hatchtech — a biotech that started by researching ways to disrupt the life-cycle of blowflies.
LaFrenz had written an exclusive article earlier this year saying that Hatchtech had got the nod from the US Food and Drug Administration for its one-off head lice treatment product.
But Lee believed there was an easier way than tendering LaFrenz’s scoop as official evidence.
“I wouldn’t know Carrie LaFrenz if she popped up in my porridge,” he told the court.
For the record, LaFrenz is a longstanding AFR reporter on the diversified industrials beat with a depth of experience covering the healthcare sector.
“In my view there is a simple way of proving that if you want it,” Lee went on.
“I’ve wasted now 15 minutes of court time with something that I could imagine would be solved by someone doing a website search on the US Food and Drug Administration.”
We tried that and Lee was right.
Grollo still living the level-80 high life
Daniel Grollo might owe creditors of his in-administration Grocon group of companies something like $60m, but that hasn’t stopped the construction scion from sinking a bomb into the recent development of his apartment in Melbourne’s Eureka Tower skyscraper.
As creditors to the collapsed clutch of 39 Grocon entities, now in the hands of the corporate undertakers from Korda Mentha, met on Wednesday for the first time, Margin Call was absorbing the fine detail of a valuation report on 50-year-old Grollo’s level-80 sub-penthouse in the sky.
The confidential report by an industry expert prepared for “internal accounting purposes” reveals that Grollo has sunk no less than $15m into the fit-out of the irregularly shaped luxury apartment — more technically, two apartments joined together but still on separate titles.
And that’s without even taking into account the acquisition of the sky home’s shell.
His family’s Grocon-built Eureka Tower on Riverside Quay Southbank until this year was Melbourne’s tallest building.
Creditors will be pleased to know that we can see exactly where the money’s been spent.
“The sub-penthouse is currently in the final stages of a very bespoke, highly detailed and luxurious internal fit-out, undertaken at a substantial cost, estimated to be in the vicinity of $15,000,000,” the 2019 report reads.
The home, which offers expansive 360-degree views of Melbourne, has a central core lift that opens to a private lobby and hallway, has several open-plan living zones, four bedrooms each with an ensuite, a fitness room and two offices.
Perfect for the millionaire property developer (in administration) about town.
The apartment is held via Grollo’s Grocon ET80 Pty Ltd, of which he is sole director. Grocon ET80 is not one of the companies that Grollo has placed into voluntary liquidation, although it is owned by the 33-year-old entity Grocon Pty Ltd, which is now in the hands of Mark Korda, Craig Shepard and their team.
Grocon Pty Ltd is owned by Grocon Group Holdings Pty Ltd, which is owned by Grocon Investments Pty Ltd. Grollo is the sole director and shareholder of that company, which has not gone under.
But let’s get back to the fun part.
“The apartment is to be fitted to a luxurious standard,” the report, which relied on schedules supplied by the owner, goes on.
There’s black granite, marble, lacquer finishes, metallic wallpaper, plus Wolf and Sub Zero appliances.
“The extensive joinery is provided by French-based consultants Hermes; with millwork, joinery, glazing, doors, tiling and appliances by other international specialists,” the report reveals.
There’s a total of eight car spaces, plus access to the building’s wider luxury amenities.
All up, the valuation of Grollo’s slice of heaven, when complete, was estimated by the expert to have a market value of $16.45m.
Secured creditors of the failed corporate group include the George Frazis-led Bank of Queensland, Shayne Elliott’s ANZ, Ross McEwan’s NAB, the Industrial and Commercial Bank of China and LaSalle Investment Management Australia.
Perhaps the bankers might like a grand tour.
Twist in move to trademark the ‘river’
It was only a matter of time before someone tried putting a trademark on the pro-Palestine rallying cry, but the obvious candidates have been beaten to the punch.
Game, set and much posturing at opening salvo
Let’s call it the first — and ultimate — status update of the corporate season. School assembly for the CEOs. The gathering of big-shots and silverbacks. The Australian Open tennis finals.