Looming bankruptcy threat leaves Cairns city councillor in limbo
A dark cloud hangs over the future of a Cairns city councillor unable to pay a six figure defamation bill, as council grapples with how to fill a potential vacancy and whether a by-election will be triggered.
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A dark cloud hangs over the future of a Cairns city councillor unable to pay a six figure defamation bill if he is called to pay damages awarded by the court last year.
Rob Pyne was at the centre of a marathon defamation battle which finished in October 2024, with District Court Judge Dean Morzone KC awarding damages to former Local Government Association of Queensland boss Greg Hallam in the order of $157,261.41.
The court found Mr Pyne defamed Mr Hallam by sharing a cartoon depicting the former LGAQ chief executive as Jabba the Hutt.
Mr Pyne said he does not have the means to pay the sum.
If lawyers for Mr Hallam sent a letter of demand and the court ordered the sum be paid, he would be forced into bankruptcy.
“The way I understand, they could issue a letter of demand and make me go bankrupt,” he said.
In November last year an application to appoint a cost assessor was filed in the Cairns District Court on behalf of Mr Pyne.
In accordance with the Local Government Act, Mr Pyne would be disqualified from holding office if made bankrupt.
Mr Pyne said he was of the understanding that Mr Hallam could either elect to chase defamation costs or let the matter go.
“(LGAQ and Mr Hallam) could have decided among themselves and said let’s not (enforce payment,)” he said.
“Greg Hallam can hold that bit of paper in the air and elect not to enforce it, it’s his call.”
According to the act, if a vacancy occurs within 12 months of the March 2024 election the Electoral Commission Queensland can approach the Division 5 runner-up and Team Eden candidate Emma Gelling to ask if she wishes to take up the role.
In the event of the Division 5 councillor declaring bankruptcy Cairns Regional Council chief executive Ken Gouldthorp has considered a succession plan to fill the vacant position.
Relaying the outcome of a meeting with Mr Gouldthorp, the CBD councillor said it was the chief executive’s view the transition could be “handled in-house.”
In a follow up email Mr Gouldthorp sent relevant excerpts of the Local Government Act for Mr Pyne’s consideration.
“As someone who believes in democracy the logical decision the mayor should make would be to seriously look at the candidate who polled second,” he said.
“If the mayor is not having a democratic rationale by looking at that person who came second then I think there should be a by-election.”
Despite Mr Pyne’s meeting with the chief executive Mayor Amy Eden said “no preparatory measures” about a potential Division 5 vacancy had been taken.
“It’s going through a process, LGAQ haven’t even met yet to discuss it, they’re the next steps,” she said.
“So they’ve got to decide what they’re going to do, and if they lodge to do that, then we can start having those conversations, but they haven’t happened yet.”
The LGAQ has been contacted for comment.
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Originally published as Looming bankruptcy threat leaves Cairns city councillor in limbo
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