‘Retirement not an option’
Sir Tim Shadbolt bows out of local body politics ‘‘virtually penniless’’ due to a longrunning court case hanging over him.
Invercargill’s former mayor of 26 years said the case against his own council, which had put him in debt beyond half a million dollars, was the worst thing that had happened to him and had robbed him of a retirement.
‘‘Retirement isn’t an option, I have to work until I drop,’’ the 75-year-old said.
Shadbolt was sued for defamation by city councillor Karen Arnold in 2018. After a lengthy trial he was cleared of the charge.
The costs were awarded in favour of Shadbolt but they were unrecoverable as Arnold was subsequently adjudicated bankrupt. He asked the city council in 2018 to cover his costs under an indemnity clause in The Local Government Act but council refused to do so, while its insurer, Riskpool, also declined cover.
He filed court proceedings against the council in 2020 in a bid to recover the costs, before later including Riskpool in the proceedings. In addition to seeking the order that he was entitled to be indemnified, Shadbolt alleges the council was negligent in failing to arrange insurance cover that would have indemnified him, or negligent in failing to challenge Riskpool’s initial rejection of the insurance claim made by the council.
This week, Shadbolt’s partner, Asha Dutt, said his legal costs had risen beyond half a million dollars and it might still be two years away from going to court.
Shadbolt was recently granted legal aid to continue the case up to $20,000, Dutt said.
Dutt estimated the council had spent at least $200,000 to avoid paying Shadbolt’s legal costs. She hoped the public would ‘‘ask for justice for Tim’’, and encouraged the new Invercargill council to reconsider the issue of paying his costs. ‘‘If you look at Facebook there are hundreds of comments saying go for a holiday, go fishing, but what they don’t realise is he has been left virtually penniless.’’ Shadbolt, ousted from the city’s mayoralty by Nobby Clark in the local body elections, gave his mayoral car back this week and on Tuesday he and Dutt went to Queenstown to borrow a 1994 model car, she said.
‘‘People say he got 130 grand [a year] as mayor and where has it gone but a significant portion of Tim’s income has gone on fighting this court case. He should be entitled to get those costs back.’’
The new council had an opportunity ‘‘to do the right thing’’, Dutt said.
‘‘We shouldn’t be talking statues or parades or nice afternoon teas until it is dealt with. There is no honour or respect in leaving a mayor who has served the city for 26 years virtually destitute, through no fault of his own’’.
Clark declined to comment. Invercargill City Council chief executive Clare Hadley said that through each step of this case, the council had always sought specialist advice on the most appropriate action. This included exploring settlement with Sir Tim Shadbolt and other measures to minimise costs.
Councillors had been very mindful of the need to balance their lawful obligations with keeping the interests of the community front of mind, Hadley said.
Hadley pointed out that Riskpool was approached for cover in April 2015, when Shadbolt was served with the defamation proceedings and before it went to court.
‘‘Sir Tim requested that both council and Riskpool cover the cost of defence but this was ultimately declined and he was advised of this before incurring his costs.’’
Shadbolt had commenced separate proceedings against Riskpool, Hadley said.