A judge has said he intends to declare Salim Mehajer a “vexatious litigant” after former Auburn deputy mayor tried to sue former business partners for up to $ 52 million.
Key points:
- Salim Mehajer had sued in business over a Lidcombe development project
- The court was shown 10 previous lawsuits that failed or were dropped
- Judge Geoff Lindsay says current case was “trial abuse”
If ratified at a hearing on Thursday, this would prohibit Mehajer from taking civil action in any NSW court, after the judge agreed that he had initiated a series of cases without reasonable grounds.
Judge Geoff Lindsay proposed last week to issue orders banning Mr. Mehajer “initiate any proceedings, other than procedural requests in criminal proceedings … either in his own name or on behalf of any other person or company.”
Mehajer filed a lawsuit in the Supreme Court against SC Lowy Primary Investments and 16 other defendants in connection with a residential project in Lidcombe that left him bankrupt.
The promoter blamed the defendants for conduct alleging that it rendered him unable to pay the creditors, who then requested that he file for bankruptcy.
He made several claims for damages, including that the defendants’ actions caused him a “nervous shock.”
The original application sought compensation of up to $ 52 million, but Mehajer later agreed that his claim statement could not be upheld and was canceled.
The case comes from the Skypoint Towers development on John Street, Lidcombe.
Mehajer, 35, was previously the sole shareholder in the former parent companies of the project.
It is no longer associated with Skypoint.
Salim Mehajer was a local developer and politician in West Sydney. (Facebook)
Judge Lindsay wrote in a published sentence that he would make vexatious litigation orders against Mr. Mehajer, under the Vexatious Procedures Act, at the request of the defendants.
His lawyers pointed to 10 other failed civil cases filed by Mr. Mehajer in various courts, some of them related to Skypoint, in support of his motion.
SC Lowry was the lender through which the construction of Skypoint was financed, while other defendants also lent or advanced funds for the project.
“In the present proceedings, as in previous proceedings, Mr. Mehajer has advanced serious allegations as to the conduct of the defendants in the commercial dealings described here,” Judge Lindsay wrote in his judgment.
“These allegations have long been aired in previous proceedings and have been abandoned by Mr Mehajer or have been the subject of adverse conclusions for him.”
Judge Lindsay also wrote that he found that Mr. Mehajer ignored or “tried to evade” a previous Federal Court ruling in relation to his bankruptcy.
“The current proceedings constitute an effort to re-litigate the value of any claim Mr Mehajer has against the defendants in a manner equivalent to an abuse of process,” he wrote.
Skypoint Towers in Lidcome, formerly owned by Salim Mehajer. (Supplied)
The judge found that Mr Mehajer had “harassed” and “harassed” opponents in other legal battles, including during a failed defamation suit against Seven Network in 2020.
Judge Lindsay has also proposed suspending the current case and ordering Mr Mehajer to pay the defendants’ legal costs.
It could only start new civil cases if a Supreme Court judge clarified the proceedings before they were filed.
A hearing is set for Thursday so that the parties can file allegations about the final form of the orders.
Mehajer, who had consulted high-ranking lawyers in the past, represented himself in the case.
It is rare for vexatious litigation orders to be issued, with data obtained by the CBA in 2019 showing only 173 such cases in the country.
The High Court has only issued such orders four times in its history.
Posted 8 hours 8 hours agoWednesday 1 June 2022 at 07:15, updated 7 hours ago 7 hours agoWednesday 1 June 2022 at 08:47