Controversial broadcaster Kyle Sandilands has filed a legal challenge to ARNโs decision to terminate the remainder of his 10-year, $100 million contract, claiming the decision to do so was invalid because he had not breached his obligations.
Sandilands lawyers filed the proceedings in the Federal Court against ARN and its subsidiary Commonwealth Broadcasting Corporation, which is the licence holder for KIIS in Sydney, on Friday.
ARN notified the ASX of the development on Monday morning and said that the documents were filed after markets closed last week. Sandilandsโ contract was torn up by ARN last week following an on-air feud between him and his co-star Jackie โOโ Henderson, which the company said amounted to โserious misconductโ by him.
Sandilands claims the termination of his contract is โinvalidโ on the grounds there was no act of serious misconduct or breach of contract, according to the release. โThe termination was unconscionable under the Australian Consumer Law,โ the document also states.
โThe applicants seek an order for specific performance of two contracts, payment of whatever amounts are due and payable under the contracts at the time of judgment, and damages,โ the release said.
ARN disputes these claims and intends to defend its position in court proceedings, it said.
โGiven the early stage of the matter, ARN is unable to reliably estimate the outcome or any potential financial impact.โ
More to come.
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