Join our daily newsletter At The Bell to receive exclusive market insights
- The High Court of Australia shoots down an attempt by mining magnate Clive Palmer to reverse a law that stops him from suing Western Australia for $28 billion
- Mr Palmer sought compensation after the WA Government refused to allow him to develop a proposed Pilbara mine to sell to a Chinese business almost 10 years ago
- In 2020 the McGowan Government rushed a law through Parliament that blocked the billionaire from suing the state
- Mr Palmer claims this is unconstitutional and that the law discrimnates against him unfairly as a Queenslander
- The High Court bench has unanimously rejected Mr Palmer’s arguments
The High Court of Australia has shot down an attempt by mining magnate Clive Palmer to reverse a law that stops him from suing Western Australia for $28 billion.
The High Court full bench on Wednesday unanimously rejected Mr Palmer’s case against the state, which claimed the “anti-Palmer” legislation was unconstitutional.
Mr Palmer, who represented himself, argued that the law discriminated against him unfairly as a Queenslander and interfered with the independence of the courts.
Nevertheless, the High Court ruled this week the law that stopped Mr Palmer from suing the state of WA was valid.
What was the court case about?
The legal scuffle stems from financial losses faced by Mr Palmer from his Balmoral South iron ore project in the Pilbara region of WA — losses the Mineralogy boss blamed on the WA State Government.
Back in 2012, former WA State Premier Colin Barnett refused to formally assess the proposed Mineralogy Balmoral South mine, meaning the project never gained the regulatory approvals necessary for development.
Mr Palmer said this breached an agreement he signed with the state back in 2002.
As a result, Mr Palmer could never follow through with plans to develop the mine and sell it to a Chinese company, resulting in a major financial loss for him.
The billionaire subsequently planned to launch legal action against the WA State Government for just shy of $28 billion — a figure which would bankrupt the state if the Government was made to pay up.
In 2020, however, a bill was through Parliament by the McGowan Labor government to block the billionaire from suing the government and claiming the compensation he sought.
It was this law that Mr Palmer brought before the High Court. He said the government’s decision to pass the law infringed on his right to compensation and would dissuade companies from investing in WA in the future.
The High Court rejected those arguments.
Though Mr Palmer represented himself in the High Court case, his companies were represented by senior barristers.
