The NSW Supreme Court has today dismissed claims that lobbyist firm Hawker Britton had breached its fiduciary duty to ERG Group subsidiary ITSL by not correctly relaying government communications about the failed Tcard contract.
A Tcard reader (Credit: Tcard)
The case started when the NSW Government decided to take legal action against ITSL for failing to produce a working electronic ticketing system for Sydney after years of work and around $100 million in spent funds. The government hoped to get its costs back.
ERG Group answered with a counter-claim for $200 million.
Hawker Britton was first dragged into the case by ITSL on 9 December. ITSL had an agreement with the lobbyist whereby it would use the company's services to assist in its dealings with the NSW Government. ITSL barrister Wayne Muddle had said ITSL wanted to discover whether representations made by Hawker Britton on government matters had been factually correct.
Justice McDougall today ordered that the additional cross-claim be dismissed.
"Application for leave to file a third cross-claim summons and list statement should be dismissed with costs," Justice McDougall told the court this afternoon.
The judge who heard the cross-claim on 9 December, Justice Hammerschlag, had not at the time been impressed with the way the cross-claim was presented, saying it lacked the necessary legal backing. "I think it's a recipe for a forensic disaster," he said. "I think the case which you wish to file can be pleaded, but this document does not achieve that."
Direction hearings continue next week.