‘Hopeless’: Judge slams ex-LNP president’s over $5.5m government grant
David Hutchinson’s legal defence against allegations he misused $500,000 in energy research money was so bad, it amounted to an abuse of process, a judge has ruled.
The former president of the Queensland Liberal National Party launched such a “hopeless” legal defence to allegations he had misused $500,000 in Morrison government grant money that it was an “abuse of process”, a judge has ruled.
David Hutchinson has been ordered to pay legal costs – on an indemnity basis – to former business partner and political ally Brad Carswell after a months-long dispute over their renewable energy company Green Day Energy.
In the final weeks of the Morrison government, the company received a taxpayer-funded grant worth $5.5m to conduct research into the production of low-emissions energy from the combustion of a weed called prickly acacia.
But Federal Court judge Roger Derrington, in a scathing judgment in December and an equally damning ruling in recent weeks, has slammed former director Mr Hutchinson for “misusing the company’s funds” for his own benefit and that of his relatives.
In the most recent judgment, Justice Derrington said Mr Hutchinson’s attempts to defend his actions were so legally hopeless that they could “legitimately be described as an abuse”.
“In the present circumstances, Mr Hutchinson’s defence of the claims against him, despite it being obvious from the evidence that it was hopeless, constituted sufficient misconduct to warrant the ordering of costs on an indemnity basis,” the judge said.
Generally, the winner of a Federal Court case is awarded standard legal costs, meaning the loser will reimburse only part of the successful party’s legal costs. Less frequently, the court can order that indemnity costs be paid, meaning the loser pays for all of the winner’s costs “reasonably and properly incurred” if the loser’s conduct warrants it.
In his December judgment, Justice Derrington found Mr Carswell, a former LNP candidate for the Senate and the federal seat of Lilley, became concerned in May last year about “certain large transactions” from GDE’s accounts, including a $500,000 withdrawal.
It later emerged that Mr Hutchinson transferred the $500,000 – from the Morrison government’s $5m grant – to his brother Stephen’s mortgage offset account but told the Department of Industry in official accounts that the money was paid to an engineering firm for “plant and equipment”.
“That entry was false,” Justice Derrington said. The judge also found company money was spent on buying a $36,000 Nissan Navara registered in Mr Hutchinson’s name and a Ford Ranger that cost nearly $70,000 and was used exclusively by Stephen Hutchinson.
“These dealings by Mr Hutchinson reinforce the view that he has been prepared to misapply the company’s funds rather audaciously for his own benefit and for the benefit of his relatives,” Justice Derrington said.
Mr Hutchinson then forced the company into administration despite it having more than $1m in the bank, and sacked Mr Carswell as a director.
Mr Hutchinson was party president ahead of the 2020 Queensland election when it was revealed he was attempting to lead a backroom plot against then LNP leader Deb Frecklington.
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