iscover Loss for ex-CA member in ongoing campaign against professional body
BusinessA former CA ANZ member who accused the professional body of paying unauthorised director fees and publishing false financial reports has hit yet another roadblock in a series of unsuccessful proceedings.
Gerald Jaworski, a former member of CA ANZ, was accused of “making vexatious use” of court processes by advancing a raft of claims against the professional body, while he has over $114,000 in unpaid costs orders still hanging over him.
In a decision published earlier this week, Justice Paul Brereton of the NSW Supreme Court said for as long as the costs remain outstanding, Jaworski’s current proceedings “are an abuse of this court’s processes”.
Jaworski has made a number of allegations against CA ANZ’s “controlling officers” – being all current and former directors over the last decade – including the unauthorised payment of director fees between 2015 and 2025, and the publication of financial reports that do not reflect the “true and fair” position and are not compliant with its by-laws.
He also challenged CA ANZ’s decision not to put 38 resolutions to an AGM in 2020, and a 2021 amendment to its by-laws to increase the minimum number of members required for a motion from 1o to 100.
In unsuccessful proceedings commenced in June 2024, Jaworski sought to have the regulator fund the court action. According to Justice Ashley Black’s judgment, Jaworski’s intention was to bring the proceedings on CA ANZ’s behalf against its own controlling officers.
Justice Black concluded Jaworski had either not established a prima facie case or that it was in CA ANZ’s interests to bring the claim.
Orders were made for Jaworski to pay CA ANZ’s costs.
Jaworski’s notice of appeal, heard before Justice Kristina Stern, was dismissed as “incompetent” on the basis that the relevant orders were interlocutory and leave was required. A second cost order was made.
After his failure on a special leave to appeal application before the High Court of Australia, Justice Black and Justice Stern fixed the sum of Jaworski’s costs liability at $101,100 and $13,600, respectively.
In the current proceedings before the NSW Supreme Court, Jaworski sought to make the same allegations against CA ANZ in his own name.
However, Jaworski’s fresh case is different in that the new proceedings have sought relief against CA ANZ, whereas the previous proceedings contemplated relief against its current and former officers by way of a derivative action brought for the benefit of CA ANZ.
CA ANZ sought an order that the proceedings be stayed until Jaworski pays the amount owing in respect of the two costs orders.
Justice Brereton found that as long as Jaworski’s $114,700 costs orders remain outstanding, “it is unreasonable” for him to pursue new action.
“In the circumstances where this court has concluded that the claims that Jaworski wishes to bring have no prima facie evidentiary basis, Jaworski is making vexatious use of the processes of this court in seeking to agitate the same claims when he has failed to meet outstanding costs orders of this court and the Court of Appeal,” Justice Brereton determined.
Justice Brereton also dismissed Jaworski’s claims that CA ANZ’s executives are affected by a conflict that has prevented them from having any involvement in giving instructions to external lawyers.
While the stay will be lifted once the costs are paid, Justice Brereton said CA ANZ has foreshadowed an application that would challenge Jaworski’s standing to bring the new proceedings.
“Jaworski appears to be motivated by a deep sense that the litigation is in the public interest,” Justice Brereton noted.
“But that does not absolve him from his liability to pay costs or justify him continuing to pursue the claim before he has met that obligation.”
