Clive Palmer Ordered to Pay Australia $13.6 Million in Legal Costs
Clive Palmer has been ordered to pay AustraliaS legal costs totaling $13.6 million following a tribunal decision dismissing his claim under a trade agreement. Teh case stemmed from disputes related to a mining project in Western Australia.
Communications Minister Michelle Rowland stated that Mr. Palmer does not qualify as a ”foreign investor” under Australia’s free trade and investment agreements, and thus was not entitled to benefits under those agreements. She welcomed the decision, emphasizing the government had ”vigorously defended this claim from the outset” and expressed hope that Mr. Palmer would withdraw any remaining international claims against Australia, while affirming the government’s continued defense of any such claims.
Ms. Rowland also noted the government should not have been required to spend over $13 million defending the claim. The albanese government is committed to reforming investor-State dispute settlement mechanisms, she added.
The dispute originated from Mr. Palmer’s action against the Western Australian government seeking compensation for the rejection of the Balmoral south mine growth. Initially, the claim reached approximately $30 billion, raising concerns it could financially destabilize the state.
Western Australian Premier Roger Cook stated the triumphant outcome averted a potential bankruptcy of the state, and expressed hope the decision would conclude the long-running legal battle. Senior WA minister Reece Whitby echoed this sentiment, highlighting the tribunal’s rejection of the $300 billion claim and emphasizing the state’s commitment to defending its taxpayers and economy.
mr. Palmer’s office indicated he would review the judgement. He retains the option to challenge the decision through the Federal Supreme Court of Switzerland.
According to University of Western Australia International Law expert Alvin Yap, the outcome was predictable, given the structure of modern treaties designed to prevent investors from exploiting loopholes by establishing shell companies to claim foreign investor status.Newer treaties specifically address this issue, denying protections to companies lacking ample business operations in the relevant jurisdiction.
