Has Clive Palmer lost his proud record of never losing a legal case? Just weeks after launching legal action against hotel operator Hyatt, the mining billionaire has agreed to pay the group an undisclosed amount of money for the company to resign its management of his Sunshine Coast resort.
The move comes after weeks of legal tussling between the two entities, after Palmer accused the hotel of mismanagement and allegedly siphoning $60 million, and ensures the safety of 650 jobs at the local tourism attraction.
The settlement comes amid Palmer’s claims he has never lost a court case.
“Both Hyatt and (Mr) Palmer agreed that the important role the resort plays in Queensland tourism was more important than their differences,” both Palmer’s Coeur de Lion Investments and Hyatt said in a joint statement, according to Fairfax.
“I wish to thank Hyatt for all they have done for the resort and the community and wish them well in the future,” Palmer said.
The company has said employees and guests will be provided with more support during the management transition. The resort will now be called the Coolum Golf Resort, and the agreement now reportedly removes the company from administration as of a creditors’ meeting to be held today.
Hyatt was contacted this morning, but a reply was not available prior to publication.
Palmer originally moved to stop Hyatt from managing the resort in February, after accusing the company of poor management. He then announced he had sacked the resort’s general manager, and that the resort itself had been placed in administration with KordaMentha appointed.
But Hyatt then took Palmer to the Supreme Court, seeking an injunction to stop Palmer from removing the company as the manager.
The new joint statement resolves all these disputes, with Palmer now taking complete control of the resort. A notice on the resort’s website indicates that Hyatt will no longer be managing the property as of March 29.
The companies’ joint statement also reportedly says Palmer’s negative allegations of the company have been withdrawn.
Administrator Ginette Muller was contacted this morning, but a reply was not available prior to publication. However, she has told the ABC that Hyatt will continue to be a part of the transitional arrangements “for the next couple of months”.
Palmer has recently been keen to pursue court action, announcing plans last month to sue QR National for $8 billion in damages, floating the idea of suing the Federal Government over the carbon tax legislation, all while waging a war against Football Federation Australia.