WA Premier Mark McGowan tried to put an end to defamation proceedings with Queensland businessman Clive Palmer in December last year, but Mr Palmer rejected his offer, the Federal Court has heard.
Key points:
- Mark McGowan had urged Clive Palmer to settle and avoid further costs
- The daily cost of the Premier’s lawyer exceeds his payout, it has emerged
- Justice Michael Lee will deliver his costs decision in court later today
Shortly before Christmas, Mr McGowan made an offer for both sides to drop their proceedings and walk away, with each to bear their own costs, thereby avoiding further expense.
But the offer was rejected by Mr Palmer and the case proceeded, with the court finding both sides defamed each other in a scathing judgment handed down last week.
Lawyers for both sides appeared in the Federal Court this morning to argue over costs, with Justice Michael Lee due to deliver his decision later today.
Mr McGowan was last week ordered to pay damages of $5,000 to Mr Palmer, while Mr Palmer was instructed to pay Mr McGowan $20,000.
Daily lawyer costs highlighted
During this morning’s arguments, Justice Lee remarked that even the daily cost of Mr McGowan’s barrister, Bret Walker SC, was higher than the damages awarded.
“It’s an interesting state of your career you reach when your daily fee exceeds the award of damages,” he said.
Mr Walker’s response was met with laughter in the courtroom.
“I’d hate for your honor to think this is the first time that’s happened,” he said.
Mr McGowan’s case has been funded by WA taxpayers, but the Premier has been at pains to point out that Mr Palmer initiated the defamation action.
Justice Lee said the rejected offer for both sides to walk away would be important in his decision.
Waste of court resources
The defamation action was centered on their war of words over WA’s closed border and a mining project of Mr Palmer’s.
Justice Lee was damning in his criticism of both men for wasting the court’s limited resources, telling the men: “The game has not been worth the candle.”
Both chose to be part of the “hurly burly” of political life and should have expected the barbs that came along with it, he said.
The mining magnate was unhappy with the Premier’s decision to close WA’s border in April 2020, which he felt was disruptive to his business interests, and sought to have the closure overturned in court.
Over the course of a series of press conferences in 2020, during the early days of the pandemic, Mr McGowan called Mr Palmer an “enemy of the state” for his actions.
The mining magnate told the court this caused him to be brought into “hatred, ridiculous and contempt”, but Justice Lee found the damage to his reputation to be non-existent.
A serial litigant, Mr Palmer was observed in the witness box by the judge to have “carried himself with the unmistakable aura of a man assured as to the correctness of his own opinions”.
‘Outlaw swinging his gun’
The other part of the defamation claim related to a state agreement held by Mr Palmer’s company Mineralogy for the Balmoral South iron ore project.
The development of the project was rejected by the then-Liberal government in 2012 under Colin Barnett, and Mr Palmer had sought $30 million in damages for what he maintained was a breach of contract.
However, under Mr McGowan extraordinary legislation was passed preventing him from seeking compensation, prompting Mr Palmer to call the Premier “an outlaw swinging his gun around to protect him and his Attorney General from the criminal law”.
Mr McGowan said these and other comments suggested he had behaved corruptly, and prompted him to counter-sue Mr Palmer.
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