Mineral Resources chief’s lawsuit halted as ex-contracts boss mounts appeal
Mining billionaire Chris Ellison’s lawsuit against his sacked contracts boss has been put on ice as an appeal against a decision to scrap parts of the explosive counterclaim gets under way.
The mining magnate, his company Mineral Resources, city law firm Bennett and former procurement manager Steven Pigozzo have been fighting three battle fronts in the Federal Court since May.
The spat began after Mineral Resources accused Pigozzo of insider trading, stashing secret commissions and misusing company secrets before he was sacked in January.
Pigozzo has vehemently denied the allegations and vowed to defend them.
Within 48 hours, Pigozzo returned fire with a 155-paragraph countersuit against the miner, Ellison and his high-profile law firm Bennett so explosive it has remained shielded from public view.
A recent judgment indicated the self-proclaimed whistleblower had accused Ellison of directing him to omit damaging emails from a $6 million company lawsuit, and instructing him to illegally import COVID testing equipment.
But many of the conversations recounted were scrubbed from the claim after being deemed “evasive and ambiguous” and subject to legal privilege.
Pigozzo filed a second action before mounting a third seeking leave to appeal Justice Michael Feutrill’s decision to scrap one-third of his allegations at Mineral Resources’ request.
The parties had been due to front court for a hearing Wednesday morning.
But that was vacated after Feutrill issued orders overnight consolidating the three actions and putting them on ice to allow Pigozzo and his Sydney-based lawyers at Harmers to pursue the appeal bid.
Pigozzo has also been granted more time to file an amended statement of claim.
The latest twist in the ongoing saga is another blow for the Ellison camp, which had been fighting tooth and nail to progress its claim against Pigozzo.
Earlier this month, Mineral Resources’ barrister Steve Penglis told the court the lawsuit should not be impeded by Pigozzo’s appeal move and urged it to allow the matter to proceed.
According to Federal Court documents, Ellison and Mineral Resources are demanding damages, compensation, an account of Pigozzo’s alleged secret profits and a declaration its decision to sack him was above board.
Mineral Resources has accused Pigozzo of establishing four companies which went on to secure $8 million in work with the miner during his stint as the company’s group sourcing manager.
According to the miner, the alleged conduct came to light last October after a probe into cost blow-outs on its flashy new $130 million headquarters in Osborne Park.
Mineral Resources has also hit Pigozzo’s alleged sidekick in the secret profits scheme with a separate lawsuit in the Supreme Court.
Ellison’s mining services company is the 25th most valuable company on the ASX, with the diversified iron ore and lithium player valued at $15 billion.
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