A Far North Queensland council has been ordered to pay more than $2.3 million in damages to a former staff member, Ellana Habermann, after a fabricated email falsely depicting her as racist was tabled in state parliament. The Supreme Court ruling marks a significant legal and ethical precedent in the region.
Ellana Habermann, who dedicated over a decade of service to the Cook Shire Council, suffered a career-ending psychiatric injury following the incident. The email, which was presented by then-Cairns MP Rob Pyne in 2017, falsely attributed derogatory remarks about Indigenous people to Habermann, suggesting she opposed the Gungarde Community Centre Aboriginal Corporation’s acquisition of a waterfront lease.
The Court’s Findings
The council argued that its duty of care did not extend to protecting staff from third-party actions, as these were beyond its control. However, Justice James Henry ruled against this defense, stating that the council failed to adequately demonstrate the email’s fabrication. This oversight resulted in a severe impact on Habermann’s mental health and professional life.
“The result of that public demolition of Mrs Habermann’s character was a lasting psychiatric injury and consequent inability to continue working,” Justice Henry concluded.
The court’s decision includes compensation for special damages, loss of income, and future earnings, underscoring the severe consequences of the council’s inaction.
Background and Context
The fabricated email was part of a dossier alleging maladministration within the council, sent to Rob Pyne, who was an independent MP at the time. While there is no suggestion that Pyne knew the email was fake, the incident has raised questions about the responsibilities of public officials when handling sensitive information.
Rob Pyne, who transitioned from a Labor MP to an independent, had previously tabled numerous unsubstantiated documents in parliament, advocating for stronger anti-corruption measures. Former Queensland parliamentary speaker John Mickel has called for Pyne to apologize to Habermann, emphasizing the importance of verifying grievances before public disclosure.
“He is still a public official and he should apologize to the woman concerned and ensure that what he tabled in parliament is now corrected,” Dr. Mickel stated.
Implications and Reactions
The ruling not only highlights the potential ramifications for individuals wrongfully implicated in public scandals but also serves as a cautionary tale for public officials. Pyne, who declined an interview, expressed concerns about the impact of legal actions on free speech and democratic processes.
“There is a separation between the courts and the legislature, but I see a future where elected officials and candidates will be so cautious about what they say to avoid exposure to significant damages and settlements that it will undermine democracy,” Pyne commented in an email.
In response to the court’s decision, Cook Shire Council’s chief executive, Brian Joiner, acknowledged the impact on Habermann and affirmed the council’s commitment to reviewing the findings. He assured that the financial implications would be covered by the council’s insurers, with no effect on the council’s budget or services.
Looking Forward
The case underscores the critical need for organizations to establish robust mechanisms for verifying information and protecting employees from defamatory actions. As the council reviews its policies and procedures, the broader implications for governance and public accountability remain a focal point for discussion.
Any decision to appeal the judgment will rest with the insurers, as the council continues to navigate the aftermath of this significant legal ruling.
