Dotcom et al get three-month reprieve on extradition hearing

Dotcom et al get three-month reprieve on extradition hearing

By Paul McBeth

May 1 (BusinessDesk) - Internet entrepreneur Kim Dotcom and his fellow Megaupload co-accused have won a three-month reprieve on their extradition hearing by a reluctant High Court judge.

Justice Sarah Katz today granted in part an application by Dotcom, Mathias Ortmann, Bram van der Kolk and Finn Batato for a judicial review of a North Shore District Court decision in March that would have seen the four face extradition on June 2. The judge sent the matter back to the district court to set a new hearing data no earlier than Sept. 1, according to a judgment in the High Court in Auckland.

Justice Katz said the decision was finely balanced, but in the interests of natural justice, she wasn't satisfied they would have a reasonable opportunity to prepare and present their cases if the hearing proceeded next month.

"I have therefore concluded, with some reluctance (given the time that has elapsed since the plaintiffs were first brought before the courts) that the interests of natural justice require an adjournment of the 2 June 2015 extradition hearing date," Justice Katz said. "This should not be taken by the plaintiffs, however, as a signal that any ongoing funding or representation difficulties (if they arise) would be likely to justify further adjournments."

The decision is the latest in a long-running court battle between Dotcom and his co-accused with the Crown and US Federal government, which has been seeking to extradite them where they face charges of conspiracy to operate websites used to illegally distribute copyrighted material via Megaupload.

The judge said the plaintiffs have to take full responsibility to prepare for their hearing, including Batato who will likely have to represent himself after being turned down for legal aid.

One of the difficulties the judge faced when making her decision was an allegation by the US that Dotcom's funding difficulties were self-inflicted because he "improperly divested himself of assets" that would have been available to fund his case, being shares in Mega that were held in the Trust Me Trust.

"The Trust Me Trust is said to be a sham and Mr Dotcom's conduct in relation to it is said to amount to equitable fraud," the judgment said.

Justice Katz said she couldn't determine the truth of those allegations, which were argued on untested affidavit evidence, and would be determined in separate civil proceedings brought against Dotcom by the Motion Pictures Association of America.

Because of that, the judge gave Dotcom the benefit of the doubt on the issue.

Dotcom and his co-accused didn't succeed in establishing that the district court judge erred in law, nor that the US failed to give them reasonable notice of the case against them.

The judge said it might be appropriate for costs to lie where they fall, but reserved her decision on the matter.

(BusinessDesk)

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