Dame Jenny Shipley & Directors Lose $40 Million Mainzeal Appeal

Shipley

Former directors of the collapsed construction company Mainzeal, including former New Zealand Prime Minister Dame Jenny Shipley, have been ruled liable to pay $39.8 million plus interest and costs to creditors and subcontractors who were left $111 million out of pocket when the company collapsed a decade ago.

LawFuel Power Lawyer Jack Hodder KC (right) represented Shipley and fellow directors Clive Tilby and Peter Gomm, arguing that the company, which went into liquidation in 2013, was being assisted by his clients in a strategy designed to save the company and its creditors, doing so out of rational and selflessness.

The Supreme Court’s decision, described as a “landmark” one by the liquidators, comes after a long-running legal battle between the company’s liquidators and the former directors.

The court found that the directors, including Shipley, were aware of Mainzeal’s precarious financial situation and breached their duties under the Companies Act by continuing to trade.

The court ruled that from January 31, 2011, the directors allowed Mainzeal to trade in a manner that posed a significant risk of substantial loss to creditors. The Supreme Court ordered the payment of compensation, along with interest at 5 percent, dating back to the company’s liquidation in February 2013. The former directors have been ordered to pay over $50 million in total.

Jack Hodder and his team expressed deep disappointment with the ruling and highlighted that the court did not question their honesty or good faith. The decision underscores the legal accountability of company directors in cases of financial mismanagement and breach of duties.

The court found the directors allowed the company to trade in a way that created a serious risk of substantial loss to creditors, which would have been apparent to them if they had acted with reasonable skill and diligence.

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Who Is Steven Sadow, Trump’s New Lawyer?

Steven Sadow: A Proficient Legal Mind Entering Trump’s Defense Team

As former President Donald Trump, who was arrested and processed in Atlanta for allegedly attempting to overturn the 2020 election – his mugshot shown – and grapples with a variety of legal challenges, his selection of well-regarded litigator Steven Sadow as part of his defense team has generated attention.

Sadow’s career is marked by a roster of high-profile clients, now headed by Donald Trump, and a steadfast commitment to criminal defense.

Who is Steven Sadow?

The Steven Sadow File

Born and raised in Trotwood, Ohio, Sadow exhibited an early affinity for law. He pursued higher education at Marietta College in Ohio, distinguishing himself as a skilled football player and even a local billiards champion during his time there.

His journey led him to Atlanta, where he attended Emory Law School. Following graduation, Sadow chose to remain in the city and embark on a career dedicated to criminal defense.

A Lifetime in Defense

Unlike many legal professionals who diversify their careers through prosecutorial roles, Sadow’s entire career has been dedicated to criminal defense work.

His passion for this field ignited at the young age of 11, when he was inspired by “The Defenders,” a black-and-white television series, which drove him to become a criminal defense lawyer, a path he has ardently followed throughout his professional life.

Sadow’s connection to the legal world doesn’t end with his professional pursuits.

His wife, Susan Sadow, is a well-respected workers’ compensation attorney in Atlanta. Sharing an alma mater with her husband, Emory Law School, Susan has a successful track record of settling numerous workers’ compensation cases, including notable ones exceeding $1 million.

Representing the Elite

Sadow’s legal journey has been punctuated by his representation of prominent figures, particularly in the music industry.

His list of clientele includes musicians such as Usher, Rick Ross, and T.I. Beyond the entertainment realm, he has also played pivotal roles in some of Atlanta’s most high-profile cases.

Notably, during the 2000 murder trial of NFL linebacker Ray Lewis, Sadow represented co-defendant Jeffrey Sweeting, who was acquitted in the case. Furthermore, Sadow was at the forefront of the federal racketeering case concerning the Gold Club, a renowned strip club.

This case saw his client, club owner Steve Kaplan, plead guilty and receive a prison sentence.

Mastery of RICO Law

Sadow’s familiarity with Georgia’s Racketeer Influenced and Corrupt Organizations (RICO) law has been particularly notable. In a recent case, he represented rapper Gunna (Sergio Kitchens), skillfully negotiating a plea deal that allowed Gunna to maintain his innocence while pleading guilty to one RICO-related count.

Sadow’s insights into RICO law have been informed by his perspective that the statute has at times been “overused” by Georgia prosecutors.

A Fresh Challenge

As Steven Sadow joins former President Donald Trump’s legal team, his extensive background in criminal defense, his experience with high-profile cases, and his knowledge of intricate legal statutes like RICO bring a wealth of expertise to the table. In the midst of significant legal proceedings, Sadow’s presence underscores Trump’s commitment to a strong legal defense.

As the former president navigates the complexities of his case, Sadow’s reputation as a seasoned and skilled attorney may prove to be a strategic asset in the courtroom.

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