In a big legal victory for the New South Wales (NSW) government, the full bench of the Supreme Court ruled that Melco must provide documentation related to the company’s acquisition of the Crown Resorts. This decision came March 12 after the court ruled in favor of the appeal by the NSW government.
The Supreme Court overruled a prior verdict finding the regulatory agency had the legal power to demand these documents related to Melco’s acquisition of Crown Resorts from James Packer:
“The court held that the primary judge erred in concluding that… the Royal Commission Act did not confer a ‘power or authority’ on a commissioner [the judge heading the inquiry], with that section extending the general power to compel the production of documents to include the power to compel the production of legally privileged documents,” it was explained in the court’s decision.”
In February, a Supreme Court judge had ruled in favor of Melco Resorts, barring the government from being able to acquire certain documents that the New South Wales’ Independent Liquor and Gaming Authority (ILGA) had ordered produced. Included were the demand for nine documents which the company declared as legally privileged.
The ILGA has been seeking these documents after Melco Resorts & Entertainment head Lawrence Ho had made a deal with Packer to buy 20% of the Australian casino operator. The ILGA balked at the deal, primarily because Ho’s father Stanley Ho had been linked to criminal activity and Packer was barred from making any deals with the elder Ho.
As part of their review of the deal, the ILGA began a public inquiry to examine the acquisition. Documents were subpoenaed as part of that hearing, but Melco balked at providing them. The hearing was in a state of limbo as the appeal worked its way through the courts, but the appellate court’s decision will now likely mean that the hearings will resume sometime in mid-March.
This battle isn’t quite over, however, as Melco has the legal right to appeal the decision to the High Court if they choose to do so. At this moment, Melco executives have not provided any comment as to what their next move may be. The ILGA has also not provided comment on the decision or when the hearing will proceed.
