The lawyer who sued former chief financial officer Sidney Powell for breach a duty of care has lost a $6.6 million case.
Key points:The lawyer, Paul O’Connor, has filed for bankruptcy and sought $6 million in damages in a $10 million judgement against Mr Powell and his partner”Mr Powell is the sole remaining shareholder in the company” Mr Powll’s partner and two other directors have also lost their jobs and are also being sued by the firmMr O’Connell has sought $10,000 in damages for breach and wrongful terminationMr Powll is currently being investigated by the Australian Securities and Investments Commission for a range of allegations of fraud and misconduct in relation to the sale of the company, including allegations of bribery, embezzlement and money laundering.
“Paul O’ Connor has lost this case due to a fundamental breach of fiduciary duty by the defendant, Mr Powells partners and the other directors,” Mr O’Connors lawyer Michael D’Amico said in a statement.
“This was a case where the firm should have had the benefit of the law.”
The case, which is before the Federal Court, was the first time Mr O’tonnell had lost a case in court, and the second against a law firm, following the US case involving former US Secretary of State Hillary Clinton.
“Mr O’tons actions are not only reprehensible, they are wholly inconsistent with the law,” Mr D’ Amico said.
“He has also breached the law by taking on the position of principal of a corporation that has a legal obligation to its shareholders to pay the highest possible dividend.”
The actions of the firm in this case are wholly illegal and, as a result, Mr O’sons actions constitute breach of the Corporations Act.
“The firm, which has a long history in the financial services industry, is also being investigated for alleged breaches of Australia’s corporate governance laws.”
We are currently conducting a full and thorough investigation of this matter and we will vigorously defend our position,” Mr Wolles’ lawyer, John Brown, said.