Salim Mehajer: Former deputy mayor’s $52m lawsuit results in massive legal blow

Disgraced former politician Salim Mehajer has suffered a massive blow after a lawsuit backfired in the NSW Supreme Court.

Disgraced former politician Salim Mehajer has been blocked from launching legal action in NSW after his attempt to sue former business partners for $52m backfired.

The controversial former developer was on Thursday declared a “vexatious litigant” by the NSW Supreme Court.

Under the orders, the former Auburn deputy mayor is prohibited from bringing any new proceedings in NSW unless granted leave by the court.

Supreme Court Justice Geoff Lindsay granted the following orders an application by SC Lowy Primary Investments and 16 other parties.

It came after Mehajer launched a lawsuit related to a proposed development at Lidcombe to be known as SkyPoint Tower, for which SC Lowy provided a loan for its construction.

In December 2017, two of Mehajer’s companies, SET Services Pty Limited and Sydney Project Group Pty Limited, were placed into liquidation by creditors.

Mehajer was declared bankrupt in March 2018 owing $24m to creditors.

He attempted to sue SC Lowy, saying their actions caused him to be unable to pay the petitioning creditors.

According to Justice Lindsay, Mehajer made a series of “serious allegations”, claiming that the defendants had caused him to suffer “nervous shock”.

According to a statement of claim filed by Mehajer in 2020, he sought damages of $52m from the 17 parties.

However, he later accepted that the statement of claim could not be maintained and should be struck out.

Justice Lindsay said in many proceedings, Mr Mehajer had advanced “serious allegations” about the defendants only for the allegations to later be either abandoned or struck out.

The defendants identified 10 lawsuits, including a failed defamation claim against Seven West Media, as examples of vexatious proceedings brought by Mehajer.

Justice Lindsay found that all 10 proceedings were either “foredoomed to fail”, “vexatious”, “initiated without reasonable grounds” or meant to “harass” or “annoy” the defendants.

Mehajer represented himself during a Supreme Court hearing on Thursday morning and dialed into the court from Cooma Correctional Center after he was last year jailed for at least two years and three months for lying under oath to further his business interests.

He will not be eligible for parole until January next year.

Mehajer asked Justice Lindsay to include a “carve out” in his orders that would allow him to bring proceedings SC Lowy and the 17 orders placed against other defendants, arguing the orders placed a “great burden” on him.

“I’ve decided there should not be a carve out, so why would I at this stage department from that?” Justice Lindsay said.

He made six orders, including placing a stay on Mehajer’s proceedings against SC Lowy and prohibiting him from instituting any proceedings in any NSW court or tribunal without leave from the court.

He was also ordered to pay the defendants’ costs.

Originally published as Salim Mehajer suffers massive legal blow after $52m lawsuit backfires

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