Next steps: Former Fiat Chrysler Automobiles managing director Clyde Campbell’s assets will not be frozen, but he is required to notify FCA of any dealings.

FIAT Chrysler Automobiles (FCA) Australia’s civil case against former chief executive Clyde Campbell looks set to drag out to mid-2016 as the two parties last week came to an agreement over Mr Campbell’s assets.

As previously reported by GoAuto, an interlocutory hearing was scheduled for last Friday, June 19, in the Federal Court of Melbourne, with FCA Australia seeking to freeze the assets of Mr Campbell, who is alleged to have misused more than $30 million of company funds.

However, an order issued by Justice Beach last Thursday – and obtained by GoAuto – reveals that Mr Campbell’s assets will not be frozen by the court.

Instead, Mr Campbell has undertaken to give FCA Australia 14 days’ notice of removing certain assets from Australia or New Zealand – or disposing of, or dealing in, those assets.

Notification will give FCA Australia the opportunity to stop Mr Campbell from removing, disposing or dealing in the assets.

The assets FCA Australia sought to freeze include properties in the Melbourne suburb of Brighton, as well as further properties in Freeburgh in north-eastern Victoria and Gilston on Queensland’s Gold Coast.

Other assets included those of the business known as C Campbell Holdings, including Mr Campbell’s shareholding in and dividends received from it, Mr Campbell’s shareholding in and dividends received from Ryder Property Investments and a bank account in the name of Mr Campbell and his wife Simone.

The order issued by Justice Beach mentions Simone Campbell as a respondent, as well as Kalamazoo Super, and C Campbell Holdings.

Under the order, Mr Campbell is permitted to transfer the registration of C Campbell Holdings to New Zealand and (with FCA Australia’s consent) invest up to $1.5 million in a retail and distributorship business there.

Clyde and Simone Campbell can also continue to pay “ordinary living expenses”, and legal fees, while they can “deal with or dispose of the assets in the ordinary and proper course of business”, which includes paying business expenses.

Meanwhile, the Federal Court has confirmed a timetable for the next stage of the case, with both parties set to exchange pleadings, or statements about their case.

Mr Campbell must submit his defence statement by July 24, and FCA Australia must serve its reply by July 31, with any amendments made to the original statement of claim to be filed by July 1. In September, both parties will give ‘discovery’, which is when the two parties exchange documents in their possession that are relevant to both sides of the case.

A directions hearing is set for September 18.

Lawyers have told GoAuto that the directions hearing will likely result in a timetable for evidence and, potentially, the setting of a date for the final trial. GoAuto believes that the final trial will not happen this year, and is more likely to be set for mid-2016.

As previously reported, FCA Australia is alleging that Mr Campbell misused more than $30 million of company funds during his tenure as head of the company between October 2010 and May 2013.

The company is seeking compensation, damages and court costs as well as a court declaration stating that Mr Campbell breached his contract of employment. Mr Campbell’s solicitor, Sam Bond, told Fairfax Media last month that the claims against his client are “not only completely denied but considered scandalous”.

Fairfax Media has also subsequently reported that Mr Campbell previously faced criminal charges relating to a car theft racket in Victoria, South Australia and New South Wales in the early 1990s.

By Tim Nicholson