Kyle Sandilands’ statement of claim drops, after ARN ‘disputes’ legal claim over $100 million contract. After Sandilands lodged legal proceedings on Friday, the bombshell statement of claim has emerged.
Kyle Sandilands claims his former employer made it “impossible” for him to fix the problem that led to his multimillion-dollar sacking and is now seeking $85 million.
The radio shock jock has filed an explosive Federal Court action against the Commonwealth Broadcasting Corporation and the Australian Radio Network, claiming his contract termination is “invalid” and seeking damages over the collapse of his $85 million broadcasting deal.
Court documents filed on March 20, but seen by news.com.au today, reveal the dispute stems from on-air comments Sandilands made to co-host Jackie Henderson on February 20 about her phone use and love of star signs and astrology during the The Kyle and Jackie O Show.
CBC issued a breach notice on March 3 alleging “serious misconduct”, claiming Henderson refused to ever work with Sandilands again.
But the shock jock’s court filing argues CBC simultaneously terminated Henderson’s contract on the same day, making it “impossible” for him to remedy the situation within the required 14-day period.
His legal team claims this conduct was “unconscionable” under Australian Consumer Law and that the broadcasting agreement, worth over $7.4 million annually until 2034, explicitly acknowledged Sandilands’ “robust character”.
Which CBC allegedly said it “desired” and Sandilands is seeking declarations that the termination is invalid and compensation for economic and non-economic loss.
ARN Media Limited released an ASX statement to the market this morning.
The bombshell statement acknowledged that proceedings had been filed in the Federal Court against ARN and the Broadcasting Corporation Pty Ltd (CBC), a subsidiary of ARN, which is the licence holder, late Friday.
“The applicants claim the termination of Mr Sandilands’ contract was invalid on the basis they allege that there was no act of serious misconduct or breach of contract, and that the termination was unconscionable under the Australian Consumer Law,” the statement reads.
“The 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.”
The statement also says ARN “disputes” the claims, and it intends to defend the proceedings.
“Given the early stage of the matter, ARN is unable to reliably estimate the outcome or any potential financial impact,” the statement reads.
This comes after Sandilands, 54, released a searing statement last Wednesday, in which he announced that ARN had terminated his contract and slammed the network.
“My lawyers told them last week this would be invalid. And guess what? It is,” the statement reads.
“Let me tell you what actually happened here. Jackie and I had a blue on air. That’s it. The kind of thing we’ve done a hundred times in 25 years. And ARN took the situation and decided to try to burn the place down.
“They sacked Jackie. They suspended me. They wouldn’t even let me pick up the phone to call her or anyone else on the show.
“Then — and this is the bit that gets me — once they’d made it impossible for the show to go on, they turn around and say, ‘You didn’t fix it. You’re fired!”
The radio heavyweight also shared that he’d apologised profusely to Jackie, and when he said he was sorry, he meant it.
“I still mean it. But it doesn’t mean I will stand by while I am separated from the people who’ve listened to me every morning for 25 years,” the statement read.
Sandilands claimed he’d done everything the network had asked since he was suspended after an on-air argument with his co-host, Jackie, on February 20th.
“In the two weeks since, I’ve done everything ARN asked. I said, ‘Put me back on air. I’ll work with Jackie. I’ll work with someone else. Whatever you need.’ Every single time – ‘no.’
“They weren’t interested. They didn’t want to fix this. They thought they saw a chance to get out of the contract they signed with me a year ago, and they ran with it,” he said.
“ARN knew exactly what they were getting when they signed my deal. They’ve worked with me for over a decade.
“They knew how I work, they knew the show, and they were happy to pay for it — because I delivered number one ratings. Year after year. Hundreds of millions of dollars in revenue for their business.
“I held up my end. I always have.
“So, you tell me – why would ARN prefer to breach a contract and pay the legal consequences rather than honour the contract and pay me to do what I do best? That’s the bit that doesn’t make sense,” the shock jock argued.
“I’ve got a contract until 2034. I’ve got rights under that contract. And ARN hasn’t honoured the contract. So, it’s over to my lawyers.
“To the people who tune in every morning — you lot are the reason I’ve done this for 25 years. You didn’t get a say in this. Neither did I. But my lawyers will.
“I’m not done. Not by a long way.”