IOOFhas been denounced in a recent Supreme Court ruling after the presiding Judge considered its case plagued with “inconsistencies” and that “virtually every witness was open to criticism”.
The ruling, which IOOF is appealing in a hearing on Friday, found in favour of two advisers who alleged the Melbourne-based firm sold to Bendigo Bank in 1999, building society offices the pair had separately agreed to franchise (MM October 2, 2003).
Judge Habersberger was critical of IOOF with claims that many key documents were disclosed “belatedly” and “eventually”, leading to contradictions in some witness statements.
“I generally found all of the witnesses called on behalf of the plaintiff(s) to be honestly trying to recall past events… I cannot say the same about all of the witnesses called on behalf of the defendants,” the judge said in handing down his ruling.
“Ms Pearce [a former IOOF employee and now Bendigo Bank chief manager operations, retail] and Mr Mollison [IOOF chief financial officer], in particular were unsatisfactory witnesses. They were not forthcoming about past events, often resorting to evasive or non-responsive answers,” the Judge said.
Habersberger also commented on the evidence of chairman Raymond Shoer, who retired as a director in January 1998, but was recently re-appointed group chairman following the resignation of Charles Macek.
“I am not prepared to accept Mr Shoer’s evidence of what was and was not discussed at board meetings because his recollection was shown to be faulty.”
However, the judge did not accuse Schoer, who is the former Australian Stock Exchange national director operations, of willingly misleading the court.
“Whilst I accept that Schoer was honestly trying to give his evidence, his recollection was shown to be quite faulty when the belatedly discovered documents were examined and his evidence is therefore not reliable.”
IOOF legal counsel,Phillips Foxpartner Brad Ross, says IOOF cannot comment on the case while it is still appealing the overall ruling on liability.
