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Hardie lawyers under fire
October 07, 2004
NEW South Wales Attorney-General Bob Debus expects legal advice tomorrow on whether his office can start contempt of court proceedings against James Hardie Industries and their legal advisers.
The Government is seeking advice following the six-month Jackson inquiry into an underfunding of James Hardie's asbestos liabilities.
Commissioner David Jackson found that lawyers from Allens Arthur Robinson, acting for James Hardie, had failed to disclose important information to the NSW Supreme Court in 2001, when the company applied to move its headquarters to the Netherlands.
The lawyers also promised the court that James Hardie would leave $1.9 billion in partly-paid shares to be drawn on as a possible life-line for asbestos compensation in Australia, but those shares were later cancelled without the court being informed.
Mr Jackson found the lawyers were in breach of their duty of disclosure but that it was not deliberate.
However, Mr Debus said the Government was not bound by the commission's findings that there was no deliberate failure to disclose the information.
"In order to establish whether a contempt or any other illegal action had taken place, the Government has instructed senior counsel to consider all the evidence provided to the commission," Mr Debus said in a statement.
The Government was also seeking advice on whether James Hardie's legal advisers could be investigated by the Legal Services Commissioner for professional misconduct, he said.
"Our advice tomorrow will only be the first stage and we will have to examine all the evidence before we can ensure that proceedings can be pursued on sound grounds," Mr Debus said.
"The Government wants to assure all those who have suffered asbestosis or related lung diseases, and their family and friends, that we are exploring every avenue to justice."
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NEW South Wales Attorney-General Bob Debus expects legal advice tomorrow on whether his office can start contempt of court proceedings against James Hardie Industries and their legal advisers.
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