Pacific Dairies director Paul Duckett in defamation win in County Court over fraud allegations

The battle over Pacific Dairies continues in the courts over a fraud allegation. See the latest developments.

The chairman of wannabe dairy processor Pacific Dairies considered the stress from fraud accusations would go away “if I just kept swimming” while out in the ocean.

Paul Duckett told a defamation hearing in the Victorian County Court claims by Pacific Dairies shareholder Alan Mitchell that he was involved in criminal fraud and he was acting contrary to his director obligations had caused him “great stress”.

Mr Mitchell, who was one of a group of Pacific Dairies shareholders trying to turf the directors off the board in early 2019, made the fraud and other allegations against the directors in an email to about 35 shareholders on January 9 that year.

Mr Duckett and another director, Ray Taylor, lodged defamation proceedings in the County Court in January, 2019, against Mr Mitchell.

Mr Taylor is believed to have withdrawn from the case after being diagnosed with dementia.

He remains a director of Pacific Dairies.

Mr Mitchell withdrew from the court process in July this year for financial and mental health reasons.

In her judgment handed down last week, Judge Julie Clayton said Mr Duckett told the court he had many nights of interrupted sleep as a result of Mr Mitchell’s 2019 email.

Mr Duckett, a keen swimmer, said friends of his swim club made joking but hurtful remarks, resulting in him joining another club.

Judge Clayton said it was not clear whether the remarks emanated from the email or posts on the Hot Copper investor website or reports in The Herald & Weekly Times, publisher of The Weekly Times.

Posts from Hot Copper or The Weekly Times articles were not submitted as evidence in the court.

Judge Clayton said the Mitchell email caused Mr Duckett “great stress”.

“He said there were moments when, whilst in the ocean it went through his head that ‘all of this would go away if I just kept swimming’.

“However, he said he would never do that to his family.”

Mr Duckett claimed there were “campaigns” against Pacific Dairies being waged on social media and in The Herald & Weekly Times which had prevented the company from being able to raise funds to build a new dairying operation.

He said he was asked to resign from another board after negative articles in The Weekly Times and Hot Copper, which he attributed to Mr Mitchell.

Food importer Nick Mitropoulos, Costa Group human resources general manager Carl Phillips and Woolworths industrial relations staffer Renato Marasco gave character evidence on behalf of Mr Duckett about the impact of the fraud allegations.

But Judge Clayton said there was no evidence the Mr Mitchell’s email was published on any website or “otherwise available on accessible forum”.

“There is evidence of a limited grapevine effect, which does not, I have found, extend to Mr Duckett’s professional circles,” she said.

Mr Duckett sought damages of about $150,000 but was awarded $45,000 by the court.

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