Gloucester Park land sale in legal row

The Supreme Court has struck down a move for parties to produce and inspect the ballot papers relating to the Western Australian Trotting Association’s multi-million-dollar Gloucester Park land sale to Hesperia.

Members of the WA Trotting Association, trading as Gloucester Park Harness Racing, voted in favour of selling parts of Gloucester Park land to make way for Hesperia’s proposal to develop it into a new town square, hospitality, and entertainment district at a referendum in October.

Former association member Duro Margaretic is suing the WA Trotting Association in the Supreme Court of Western Australia, alleging that the referendum process was in breach of its own rules and gave rise to members possibly voting twice.

Appearing at a Supreme Court directions hearing today, counsel for both parties have discussed the related documents Mr Margaretic proposed to be produced and inspected from filed affidavits.

Among the documents Supreme Court Justice Kenneth Martin decided to be inspected include an agreement with Hesperia, a letter about a $24.7 million principal funding arrangement, and a heads of agreement.

However, Justice Martin ruled that a valuation by JLL and an independent review by KPMG, both reportedly commissioned by the WA Trotting Association, and ballot papers from the referendum, should not be produced and inspected.

Justice Martin said these items did not meet the legal threshold to enable inspection because they were only inferred and not directly referenced as documents in the related affidavits.

The proposed Gloucester Park redevelopment comprises a 4,000-person theatre space, racetrack renovation, hospitality precinct and high-rise apartment buildings.

In October, the WA Trotting Association announced 84 per cent of the members who voted supported the land sale to Hesperia to make way for the redevelopment.

The sale was for a 5.9-hectare lot of land out of the 14.7ha Gloucester Park site in East Perth.

It was also previously reported Racing and Wagering WA would contribute $24.7 million in funding towards the upgrade.

Mr Margaretic had been described by his lawyer Brian Lauri in court today as a passionate former WA Trotting Association member concerned about the circumstances behind the land sale voting.

“The plaintiff is aggrieved that the by-laws have not been complied with, this is very important for the Trotting Association,” Mr Lauri said.

“The plaintiff has no financial interest in this, he is pursuing at his own expense and is concerned about the outcome of the referendum.”

According to Justice Martin, Mr Margaretic alleged there was a potential double counting of votes through an abuse of process.

Other allegations include ommitted information in the materials sent for postal voting compared to the online process, and an inadequate address of the arguments to vote in favour or against.

Mr Lauri told the court that Mr Margaretic also claimed there had also been a lack of identification process for online voters, with members not properly identifying themselves.

Lawyer for the WA Trotting Association Alan Hershowitz said the cause of action about the alleged irregularity of double voting was weak.

“The plaintiff is seeking or fishing for cause of action … there’s good cause (for) an inspection order not to be made,” he said.

The matter has been set for mediation in mid-March and a hearing in April.