A Tropical Delight For Sol's Team

Sydney Morning Herald

Friday October 17, 2008

Michael Evans

Michael Evans finds room in the Trujillo passport for a stamp.

AND to think some in the community are concerned about corporate excess.

It's all about rewarding effort. Ask Sol Trujillo.

His five-year plan to turn Telstra around is going swimmingly, enhanced by the latest move to sack another 800 underlings.

So we were pleased to hear he's packing off a few - about 30 - of his highest achievers tomorrow on a sojourn to Hawaii.

Something about a conference, we hear. All work, no play, no doubt. Plenty of Telstra assets in Hawaii to inspect, too.

But it's good to hear Sol's sharing around the foreign escapades at Telstra.

Not that he's into denying himself a dance in a hula skirt. We hear Sol perhaps doesn't plan to deny himself and may be accompanying the troops.

Refreshing, too, that Sol, who earned about $13 million last year, isn't put out by the recent moves in the Australian dollar. Aloha.

Difficult divorce

Breaking up is hard to do. Two years after Mark Pistilli, Danny Simmons and Diana Chang split from law firm Atanaskovic Hartnell, the pains of separation are still being felt in the courts.

And after a few early rounds in the Supreme Court, they've taken their stoush to the local court where the magistrate is peeved over the $60,000 in fees Chang, Pistilli and Simmons claim they're owed by John Atanaskovic, Danny Farrugia and Tony Hartnell.

In a breezy decision in the Downing Centre on whether to allow changes to their claim, magistrate David Heilpern offered his thoughts on: the parties blowing more than $100,000 in preliminary skirmishes for just six minutes of court time; attacking the Lear Jet-set for supping on Moet when Virgin Blue and VB would do; the size of Antagonistic's ego; and whether Atanaskovic speaks Yiddish and reads comic books.

From the bench

We'll let magistrate David Heilpern speak for himself:

"I note that the solicitor for the defendant, a partner in the firm of Atanaskovic Hartnell, has expended $22,695 on the Supreme Court phase of these proceedings and $86,000 (largely at $600 an hour) in the local court phase thus far."

He thought these amounts "despairingly disproportionate" given they cover preliminary skirmishes.

"If they [the parties] choose to spend 143 hours at $600 per hour on a local court matter before it is even set down for hearing, there is little that the court can do. Actual time in court prior to the motion appears to be approximately six minutes."

He worried over the efficiency of the lawyers working on the case. "I am not sure what was done in all of the 142 hours and 54 minutes, given that it equates to three or four weeks full-time work for a partner of a major commercial firm.

"Proportionality is not determined solely by how much a party has spent or will spend on the matter; otherwise those who choose to travel by Lear Jet and sup Moet would have cause to complain when Virgin Blue and VB would suffice."

We wonder to whom he could have possibly been referring.

Reading of the letters

The magistrate pointed out that Antagonistic excelled as a man of letters.

"I have been struggling to find an accurate, but still judicial, phrase to describe the defendant's contentions. In the end I have settled on 'embarrassing'.

"A reading of the correspondence in this case, particularly in the letters penned by Mr Atanaskovic, could lead to the conclusion that the issue is not costs or delay but ego and entrenched position.

"Further, the threatening and prolix letters of Mr Atanaskovic (including to the plaintiffs themselves) could be seen as designed to inflame rather than resolve.

"Of particular concern is a letter by Mr Atanaskovic to his existing partners regarding the litigation," he said, noting Antagonistic sent it to the partners of Clayton Utz, the solicitors acting for the other side.

The magistrate, perhaps more accustomed to lesser spats in the Downing Centre, appeared unfamiliar with accepted shorthand for Clayton Utz at the pointy end of town.

"I note he refers to them as 'Clutz', perhaps seeking to demean with reference to the Yiddish for 'thick head' or to Captain Klutz the comic book anti-hero.

"In that letter he threatens Clayton Utz, and the plaintiffs, with referring the matter to the Legal Services Commissioner 'and perhaps elsewhere as well'."

Mr Heilpern got down to business.

"This threat is repeated. Mr Atanaskovic is treading on very thin ice. It is a serious criminal offence to threaten a potential witness with a detriment ... If this matter were to have any hope of being settled I would urge the parties (and Mr Atanaskovic in particular) to take a step back and allow the lawyers with the carriage of the matter to manage it on a sensible basis."

Still, every cloud has a silver something or other. Heilpern disqualified himself from hearing any more of the stoush following his comments. He allowed the amendments to the claim.

Spare the boat

Markets may be sinking but it's important to enjoy the remaining perks. Among those splashing around the harbour today for the ASX-Reuters Charity Regatta will be a crew on the UBS dinghy. The Swiss Government yesterday bailed out the bank to the tune of EUR60 billion. No word as yet on non-core asset sales, like boats.

An idle million

Heartfelt apology. Yesterday's item stating that Chris Cuffe's philanthropic fund, Third Link, had failed to point out in an ad that it had delivered returns of minus 4.5 per cent while spruiking an 13.8 per cent outperformance of the All Ords contained an error. Mr Cuffe did not receive a $32 million payout from Colonial First State as reported. He received a $33 million payout. We apologise to Mr Cuffe for any hurt and embarrassment.

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© 2008 Sydney Morning Herald

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