Note Printing Australia to pay legal bills for former boss

The Court of Appeal of the Supreme Court of Victoria has dismissed an appeal by Note Printing Australia against a decision last year that its former chief executive officer, John Leckenby, be indemnified by NPA for legal costs and expenses he has incurred and will continue to incur in defending criminal proceedings.   

Leckenby was the CEO of NPA from September 1998 to June 2004.  Along with several former senior officers of NPA, he has been charged with conspiring to bribe foreign officials to secure bank note printing contracts for the benefit of NPA.

These charges, dating back to 2011, represent the starting point of Australia's first prosecution under foreign bribery legislation.

The proceedings are continuing, and the court was advised that the next round of Supreme Court hearings related to these charges are expected to start later this year.

The central question raised in this appeal - a forerunner to the main series of trials - stems from NPA's resistance to a demand from Leckenby to honour a deed of indemnity, signed in 2001, covering him for any legal costs that might arise in the course of carrying out his duties on behalf of NPA.

NPA had argued that, under the wording used in the deed, Leckenby was not entitled to receive payment unless, and until, the court proceedings (including any appeals) came to an end and he was found 'not guilty'.

The court, consisting of three senior judges, dismissed NPA's appeal. The judges all agreed that Leckenby had a "present entitlement to be indemnified" prior to any verdict.

Further, he should not be required to provide security against the possibility he would have to refund any legal expenses advanced to him should a guilty verdict be reached (in which case he will be under an obligation to refund NPA for funds advanced).