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Robyn Edie
Sir Tim Shadbolt at his last full Invercargill City Council meeting as mayor last year. [File photo]
The legal battle between former Invercargill mayor Tim Shadbolt and his former council appears to have been resolved.
Shadbolt has settled his claims against the Invercargill City Council and its insurer Riskpool in relation to costs he incurred successfully defending a defamation suit by a former councillor.
A statement released by the council on Tuesday says “Sir Tim was seeking to recover his legal expenses related to a 2015 defamation claim brought by councillor Karen Arnold”.
“Sir Tim Shadbolt has settled his claims against the Invercargill City Council and Riskpool.”
Shadbolt was sued for defamation by Arnold but after a lengthy trial he was cleared of the charge.
The costs were awarded in favour of Shadbolt, but they were unrecoverable as Arnold was subsequently adjudicated bankrupt.
READ MORE:
* Mayor Sir Tim Shadbolt to apply for legal aid as battle against his Invercargill council continues
* Independent review: Shadbolt ‘unavoidable and inconvenient’ distraction
* Sir Tim Shadbolt’s legal action has cost Invercargill City Council $165k to date
He asked the city council in 2018 to cover his costs under an indemnity clause in The Local Government Act, but the council refused to do so, while its insurer, Riskpool, also declined cover.
Shadbolt subsequently filed court proceedings against the council in 2020 in a bid to recover the costs, before later including Riskpool in the proceedings.
The statement released by the council says “the ICC and Riskpool have not accepted liability for these expenses, but have agreed to a resolution.
“Sir Tim is satisfied with this resolution and has agreed to discontinue his proceedings.”
Invercargill City Council mayor Nobby Clark said “throughout this process, council has been measured in its consideration of options and councillors have worked to balance lawful obligations and the interests of the community.
“To date, Council has incurred costs of $285,000 in these proceedings. It is likely council would have faced further costs had this settlement not occurred. It was important for council to draw a line under these proceedings and move forward.
“Council is not able to comment further on this matter.”
More to come . . .
John Hawkins/Stuff
Sir Tim Shadbolt and his partner Asha Dutt [left] after Shadbolt found out his 24-year stretch as Invercargill mayor was over last year.
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