The trusted voice of the industry
for more than 30 years

Campbell trial likely in 2016

Posted on 04 July, 2015

Fiat Chrysler Automobiles (FCA) Australia’s civil case against former chief executive Clyde Campbell may drag out to mid-2016 after the two parties reached an agreement over his assets. An interlocutory hearing was scheduled for June 19 in the federal court of Melbourne with the company seeking to freeze Campbell’s assets, He is alleged to have misused more than AU$30 million of company funds. However, an order issued by Justice Beach – and obtained by www.goauto.com.au – reveals his assets will not be frozen. Campbell has instead undertaken to give FCA Australia 14 days’ notice of removing certain assets from Australia or New Zealand – or disposing of, or dealing in, them. Notification will give the company the chance to prevent him from doing so. The assets it sought to freeze included properties in Melbourne, ohers in Freeburgh in north-eastern Victoria and Gilston on Queensland’s Gold Coast. Other assets included those of a business known as C Campbell Holdings, including Campbell’s shareholding in and dividends received from it, his shareholding in and dividends received from Ryder Property Investments, and a bank account in his name and that of his wife Simone. The order mentions Simone Campbell as a respondent, as well as Kalamazoo Super and C Campbell Holdings. Under the order, he is allowed to transfer the registration of C Campbell Holdings to New Zealand and – with FCA Australia’s consent – invest up to AU$1.5m in a retail and distributorship business there. The Campbells can also continue to pay “ordinary living expenses” and legal fees, and “deal with or dispose of the assets in the ordinary and proper course of business”. The federal court has confirmed a timetable for the next stage of the case with both parties set to exchange pleadings. Campbell must submit his defence statement by July 24 and FCA Australia needs to serve its reply by July 31. In September, both parties will exchange documents relevant to both sides of the case. A directions hearing is set for September 18. Lawyers have told GoAuto the directions hearing would likely result in a timetable for evidence and, potentially, the setting of a date for the final trial – to be in mid-2016. FCA Australia claims Campbell misused more than AU$30m of its funds when he was head of the company between October 2010 and May 2013. It is seeking compensation, damages and costs as well as a declaration stating Campbell breached his contract of employment. Campbell’s solicitor, Sam Bond, has said the claims are “not only completely denied, but considered scandalous”.