Hepburn Shire Council Paralysed as Legal Actions Force Five Councillors to Step Down

“Justice takes as long as justice takes. The better question is how long the community has already suffered under the decisions of this council.” — David Penman

The Crisis

A Hepburn Shire businessman has launched private legal actions against five of the seven Hepburn Shire councillors, alleging they contravened the Local Government Act by failing to follow proper process when adopting the budget.

The councillors are required to step down until the matters are resolved, leaving the council without a quorum to hold meetings. The next scheduled council meeting is July 28, and it remains unclear whether it can proceed.

The Businessman Behind the Actions

David Penman operates Clifftop at Hepburn, a luxury accommodation venue in the region. He has a history of legal actions against elected representatives and individuals who left negative reviews of his business. Penman was previously charged with harassment over such reviews.

His legal challenges against the council extend beyond this recent action. Penman has pursued civil lawsuits over a rejected application for a glamping venue and sought a $450,000 settlement from the council to end ongoing civil disputes.

The Councillors' Response

Cr Don Henderson, one of the affected councillors, said he would defend the charges vigorously.

“I’ll be defending this vigorously [in court].”

He noted that he cannot currently act as a councillor or advise ratepayers, leaving the community without representation on key issues.

Local Government in Limbo

Hepburn Shire Mayor, Cr Hood, expressed grave concern about the council's ability to function.

“The council can’t survive for very long in this mode where we can’t make decisions. So something needs to give to resolve this stalemate.”

The Mayor has urged the state government to amend legislation to prevent private litigation from halting local councils in this manner.

Penman's Justification

When asked about the impact of his actions, Penman defended his position.

“Enough was enough. I did not break the system. In my view, the system has been broken for years.”

Penman emphasized that the civil proceedings are unrelated to the criminal prosecutions and stated that he has not made a public settlement offer. He now wants the state government to place the council into administration.

Background: A Pattern of Legal Action

Penman first gained public attention for sending abusive messages to guests who left negative reviews of Clifftop at Hepburn on Airbnb and TripAdvisor. He was charged with using a carriage device to harass in 2021 and 2022.

In 2019, he escalated his tactics, emailing senior figures at a major bank after an employee left a two-star review, claiming the review would generate publicity for the bank.

The Stalemate

With five councillors sidelined and no quorum available, the Hepburn Shire Council faces an unprecedented operational crisis. The community now waits to see whether the state government will intervene, or whether the legal process will determine the council's future.