key witness has decided not to give evidence

Witness pulls out of trial: Greg Barnes


Susannah Moran | October 16, 2009

Article from: The Australian

A KEY witness and a defendant in the court case brought by Chameleon Mining has decided not to give evidence in a dramatic turn of events in the case, the Federal Court was told yesterday.

Chameleon Mining is suing Murchison Metals and businessmen Greg Barnes and Philip Grimaldi, alleging Mr Barnes and Mr Grimaldi, former directors of Chameleon and Murchison respectively, breached their directors' duties in relation to the purchase of an iron ore tenement in Western Australia.

Chameleon says its money was used to help fund the purchase but its shareholders got nothing in return. It now wants a slice of Murchison's share in the venture, estimated to be about $750 million. The case is being defended by lawyers for each of Murchison, Mr Grimaldi and Mr Barnes.

Mr Barnes was set to begin a two-day stint of cross-examination in the witness box yesterday.

But when the hearing began, Chameleon's barrister, Noel Hutley SC, told judge Peter Jacobson he had been informed the previous night Mr Barnes would no longer be called.

"The case has taken such, as it were, a dramatic turn," Mr Hutley later said.

"Yes, it has," replied Justice Jacobson.

The court was also told that Nick Dondas, Chameleon's former chairman, was no longer being called. Mr Dondas, being called as a defence witness for Murchison and Mr Barnes, was set to give evidence this week.

Mr Barnes and Mr Dondas had prepared affidavits giving their version of various events.

The court was not told why the two men were no longer being called to give evidence but Mr Barnes later issued a statement. "After consultation with my lawyers, I have decided that it is not necessary for me to give evidence," Mr Barnes said.

"I will continue to vigorously defend myself through my legal team on the claims made by Chameleon."

The hearing continues next week.


http://www.theaustralian.news.com.au/business/story/0,28124,26215438-5005200,00.html