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Former LNP president David Hutchinson ordered to pay costs after
misusing Morrison government grant
(HTM) Source
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* **In short:** Green Day Energy received $5.5 million in federal fu
* In 2023 Bradley Carswell raised concerns over the way Mr Hutchinso
* **What's next?** Justice Derrington ordered Mr Hutchinson to pay
A former LNP president who misused $500,000 in Morrison government
grant money has been ordered to pay costs after ousting a business
partner who had expressed concerns, federal judge rules.
David Hutchinson had launched a "hopeless defence which had no chance
of success" when he was accused of removing Bradley Carswell from the
board of Green Day Energy and appointing administrators without the
power to do so, Justice Robert Derrington found.
"Mr Hutchinson's defence of the matter was hopeless and, effectively,
an abuse of process," he said.
In the dying days of the Morrison Liberal government, Green Day Energy
received a $5.5 million grant to create a low-emission energy from the
prickly acacia weed, commonly found throughout north-east Australia.
In May 2023, Mr Carswell, who owns 55 per cent of the company,
expressed concerns over purchases it made.
A federal court judge ruled David Hutchinson engaged in an abuse of
process.(ABC News: Rachel Riga)
The first was a half-a-million-dollar payment into a bank account
controlled by Stephen Hutchinson, David's brother.
It was flagged as payment to the companies third partner, John Winter,
for "plant equipment".
Justice Derrington ruled that was a false payment and the money was
never spent in that manner.
Mr Hutchinson claimed this was done to accrue interest for the
company, but the judge said the main effect was to reduce the amount
of interest paid by Stephen Hutchinson and his wife.
The company intended to create biofuel from prickly acacia.(Supplied:
Colin G. Wilson NSW DPI)
Justice Derrington said there was "no valid reason for Green Day
Energy funds to be used in this matter" and that the funds in the
account did not earn interest.
Mr Carswell was also concerned about the acquisition of two vehicles.
The first was a $36,000 Nissan Navara that Mr Hutchinson bought for
Green Day Energy but was registered in Mr Hutchinson's name.
A $67,000 Ford Ranger was also bought by Mr Hutchinson without Mr
Carswell's knowledge.
That car was parked at Stephen Hutchinson's house.
## Cars and money
According to the ruling, Mr Carswell and John Winter had been
"investigating the use of biomass from Prickly Acacia for many years
prior to 2021 — long before the involvement of Mr Hutchinson or Green
Day Energy.
However, in a June 14 meeting last year, where Mr Hutchinson was the
only member in attendance, he moved that "Mr Carswell be removed as a
Director of the Company effective immediately".
Mr Hutchinson told the court he did not think a meeting was required.
He filed paperwork to ASIC that day to remove Mr Carswell, but waited
12 days to tell Mr Carswell of his decision.
In August last year Mr Hutchinson began discussions with
administrators, again without the knowledge of Mr Carswell and
appointed them to take control of the company in September.
He did this on the ground that he was the only one of the three
shareholders who had actually paid for his shares, despite paperwork
showing all shares as "fully paid".
The agreed upon amount for shares was $1 each for the 100 shares.
Mr Hutchinson said he had stapled $35 in cash to his share application
and claimed he still had the document at home.
He later attached a photo time stamped in May 2023 to his affidavit in
November.
Justice Derrington ruled that this was not a valid line of thinking
and that Mr Hutchinson had engaged the administrators "to undermine
[Mr Carswell's company's] shareholding, and therefore, Mr Carswell's
influence".
Justice Derrington ruled that Mr Hutchinson's decision in June 2023 to
remove Mr Carswell as a director was "invalid and had no effect".
"The purported appointment of the second defendants as the joint and
several administrators of the first defendant was and is invalid, void
and of no effect," he said.
Where defendants are usually ordered pay some of the successful
party's cost, in this case Justice Derrington ruled Mr Hutchinson pay
indemnity costs.
That means he will pay all of Mr Carswell's costs where "reasonable
and properly incurred".
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