Lawsuit over accommodation agreement fails
Prominent Darwin construction and hospitality company Halikos Group’s massive lawsuit against international gas giant Inpex, in which it sought more than $100 million in damages over a disputed accommodation agreement, has fallen through.
Halikos Group sued Inpex in the NT Supreme.
The lawsuit alleged Inpex walked away from an agreement reached in 2014 to supply hundreds of Inpex workers with accommodation.
As a result, it left Halikos out-of-pocket to construct a new hotel that it could not fill.
Justice Judith Kelly ruled in favour of Inpex on Friday morning.
However, she said she was still finalising the reasons for her decision and did not expect to until December.
"I thought in fairness to the parties, the most appropriate course of action was to pronounce the judgment today," she said.
"I am not likely to [finalise the reasons for the decision] until December."
This means Halikos will not be awarded the more than $100 million in damages the company had sought from Inpex.
The trial lasted four week. Closing submissions were heard more than a year ago.
It was a bitter trial that pitted two local economic heavyweights against one another and saw testimony from some of the Territory's most powerful people.
Witnesses included former NT chief minister Adam Giles. Halikos had called him as a witness.
Justice Kelly's ruling is expected to put considerable financial strain on Halikos Group. That includes the awarding of costs which is expected to be in the millions of dollars. It will most likely be awarded against Halikos at a later date.
Halikos had borrowed tens of millions of dollars to demolish a hotel in the Darwin CBD. It had done so under the impression had the accommodation agreement in place, and ultimately constructed the H 105 hotel.
But the company has reassured its employees.
In a statement on Friday, it said the decision would "not affect our day-to-day" operations.
Leon Gettler, 5th September 2018
