LAWSUIT: Lisa Desmond is suing Fraser Coast Regional Council, Mayor Christopher Loft and the 10 councillors for $3.9m over claims they defamed her.
LAWSUIT: Lisa Desmond is suing Fraser Coast Regional Council, Mayor Christopher Loft and the 10 councillors for $3.9m over claims they defamed her. Alistair Brightman

Fraser Coast Council faces $3.9m defamation fight

FRASER Coast Council is facing a $3.9 million lawsuit from its former CEO who claims beleaguered Mayor Christopher Loft and the region's councillors ruined her reputation.

Launching legal action in Brisbane Supreme Court, Lisa Desmond says councillors falsely painted her as a "bully" who lodged "baseless complaints" against those who opposed her; that she misled councillors; and that she built a "culture of favouritism" in a toxic work environment rife in "fear of reprisal and low morale".

She believes her "good character and reputation" were damaged because the councillors opened her to "ridicule and contempt".

Ms Desmond alleges the council, the mayor - who faces suspension over another matter - and a number of councillors published 21 defamatory allegations about her professionalism between November 30, 2016 and January 30, 2017.

The claims relate to comments published in the Fraser Coast Chronicle, across multiple television networks, the ABC and in council documents.

Seven of the Fraser Coast's 11 councillors voted to sack Ms Desmond earlier this year.

Documents lodged in the supreme court reveal she is suing the council itself, Councillors Loft, Rolf Light, Darren Everard, Denis Chapman, James Hansen, Anne Maddern, George Seymour, Stuart Taylor, David Lewis, Paul Truscott and Daniel Sanderson.

Fraser Coast Council said it would not make any comment while the matter was before the courts.

Ms Desmond said the councillors falsely suggested she engaged in misconduct as a CEO; she failed to perform her responsibilities and functions and had a poor working relationship with staff, councillors and council management.

She argued suggestions she was dishonest, misleading, lacked credibility, was untrustworthy and "without reputation" were without merit.

In her affidavit, she said there also were incorrect allegations the State Government and the Crime and Corruption Commission were investigating her.

She is seeking $2,737,841 that she says represent the loss of earnings had her contract been renewed for a further four years followed by a further three-year renewal "in accordance with the terms of the contract."

Ms Desmond is also seeking $204,000 in lost pay, $500,000 in future earnings because she says she will struggle to find a similar job and $389,500 for "hurt and embarrassment".

She also wants the council to reimburse the $30,000 in tax she paid on her termination payout that remains secret.

The councillors also falsely said Ms Desmond was biased, showed a conflict of interest when producing council reports and manipulated information in those reports, she said in her affidavit.

Ms Desmond said her professional standing was "damaged" in the eyes of prospective employers.

The Crime and Corruption Commission has charged Cr Loft with misconduct and Local Government Minister Mark Furner will remove him from the council unless he can prove there are "reasonable grounds" for him to stay in the job. - NewsRegional

Correction: An error had been made in the naming of all councillors involved in the lawsuit. The lawsuit includes all 11 of the Fraser Coast Regional Council's councillors. The original  article also miscalculated the amount of damages Ms Desmond is seeking.