Lawyer weighs in on Kyle Sandilands' 'new project' amid bitter ARN legal battle

Kyle Sandilands has teased "a new project" amid his legal battle with ARN, with many suspecting a podcast could be in the works.

But with the shock jock battling his former employer in court, suing for $85 million over his $100 million contract, is there a limit to what he can and can't do?

"Kyle's probably free to do work on new unrelated projects while his litigation plays out," lawyer Nick Duggal of Moray & Agnew tells nine.com.au, "but he'd want to be careful publicly badmouthing ARN if he wants his contract reinstated."

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Duggal adds that Sandilands is also a judge on Australian Idol, noting it seems he wasn't strictly tied to KIIS and ARN when his contract was intact.

"While Kyle's contract with ARN doesn't seem to prevent him from performing any other work, his commencing a new commercial project while the litigation is ongoing could well have an impact on the legal battle in a number of ways," he says.

"Kyle is arguing his termination was invalid, and for his contract with ARN to be reinstated.

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"Already, Kyle getting his contract reinstated is a very 'uphill battle'. He therefore wouldn't want to take on a new project in the meantime that is inconsistent with ARN's interests, or incompatible with him returning to ARN.

"ARN's lawyers will no doubt be watching what he says about ARN in any new project. If he want his contract reinstated, he shouldn't say anything that is inconsistent with the continuation of his working relationship and contract with ARN.

"This means not only not saying anything about the court case, but also not saying anything that would make it untenable to go back to work at ARN in a public facing position. That line might have already been crossed."

Duggal said that it would be extremely difficult for him Sandilands get a court order to return to work at ARN, so seeking a new project could be more strategic "for example, to get a fast-tracked hearing". 

He also added: "Kyle has a huge damages claim against ARN, but what if he successfully replaces that income? That could have a bearing on any damages claim."

Speaking to reporters outside court last Friday, Sandilands declared: "Put me back on the radio, and let's get the share price back up."

He has since released a teaser video saying he has "a new project" in the works.

"What a surprise that I've even got fans left," Sandilands joked in a clip shared on a fan page.

"Thank you for your support ... Let me tell you a little secret. Don't tell anyone, but I'm working on a new project and all will be revealed soon.

"Thank you for your prayers. Coming back, guys, bigger than ever hopefully ... actually, not fatter."

Fans have speculated that Sandilands might be working on a new podcast, but he gave no hints as to what the project may be or when we'll know more.

This week, former Bachelor star turned podcaster Abbie Chatfield, 30, has taken over the KIIS FM breakfast slot once occupied by The Kyle and Jackie O Show.

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"I didn't sleep. I was getting up every hour checking my phone thinking I'd miss my alarm," she told listeners as she made her big debut on Monday, co-hosting with Mike E.

Sandilands contract was terminated following a now infamous on-air clash with Jackie 'O' Henderson on February 20.

He has consistently denied breaching the terms of his contract.

Sandilands released a statement announcing his termination from ARN. 

"ARN has just announced that they've terminated my contract. I don't accept it. My lawyers told them last week this would be invalid. And guess what? It is," he claimed.

"Let me tell you what actually happened here. Jackie and I had a blue on air. That's it. The kind of thing we've done a hundred times in 25 years. And ARN took the situation and decided to try and burn the place down.

"They didn't want to fix this. They thought they saw a chance to get out of the contract they signed with me a year ago, and they ran with it."

He added that he was leaving things in the hands of his lawyers.

"I've got a contract until 2034. I've got rights under that contract. And ARN hasn't honoured the contract. So, it's over to my lawyers," he said.

Both Sandilands and Jackie O are suing ARN for termination in two seperate and juggernaut legal claims.

Sandilands will argue former employer ARN was well aware of his personality and made that behaviour a condition of his contract, his lawyer said in court last Friday.

Sandilands' barrister Scott Robertson SC argued in court that the radio host's contract was unfairly terminated because he had a "special immunity" to outrageous conduct.

"Particular kinds of conduct ... might be considered serious misconduct under workplace law but not when you consider the contract," Robertson said.

"If you buy Kyle, you get Kyle."

Sandilands is seeking to have the remainder of his $100 million contract honoured.

Henderson meanwhile filed an $82.25 million suit against ARN, alleging her termination from her KIIS FM radio show with Sandilands was against the Fair Work Act.

Court documents allege "consistent bullying" from Sandilands – which he has denied – made Henderson feel "psychologically unwell, defamed and humiliated".

ARN Media disputes Henderson and Sandilands' claims and will defend against the suit in court.

ARN is also counter-suing the duo, claiming they should both repay lost advertising revenue after the show was pulled off air, and that Sandilands should return 87.9 per cent of his $3 million sign-on bonus.

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