ARN Media says radio host Jackie “O” Henderson abused “a workplace right” after her top-rating KIIS FM show with Kyle Sandilands imploded, a court has heard.
Henderson is suing her former employers for wrongful termination after ARN Media tore up her and Sandilands’s $100 million, 10-year deals earlier this year.
Commonwealth Broadcasting Corporation, a subsidiary of ARN Media, launched a counter claim in April, seeking damages for breach of contract, losses in profit and advertising revenue, and legal costs.

Henderson denies quitting the show. (AAP: Bianca de Marchi)
Their sackings followed an on-air argument between the pair on February 20, which saw Henderson almost reduced to tears.
Henderson then told ARN Media she could no longer work with Sandilands and in March she and Sandilands were sacked.
She is seeking $82 million from the media giant, claiming she was fired for exercising a workplace right.

Henderson’s lawyers previously said the radio presenter faced “ongoing bullying” while working on the show. (AAP: Tracey Nearmy)
In a letter to ARN Media bosses days after the on-air blow up, Henderson’s lawyers claimed she had been left “psychologically unwell” as a result of Sandilands’s “repeated bullying”.
On Friday, in the Federal Court, ARN Media’s barrister Tom Blackburn argued Henderson’s complaint to the company “was not made in good faith”.
“That’s an allegation of misconduct and bad faith and abuse of a workplace right,” he said.
“It’s misconduct … but on the scale of misconduct it’s not fraud.”
During the hearing, the court heard various internal messages between ARN Media executives in the aftermath of the February 20 blow-up.
One described the incident as “dynamite”, the court heard, because “[Sandilands] was blowing up the show”.

Sandilands settled with ARN Media in June. (ABC News: Abubakr Sajid)
The court heard another discussing the unfolding drama said: “Given she said she wouldn’t work with Kyle anymore this was the most leverage we could get.”
“Guys what happened on air 15 minutes ago is not OK,” another internal ARN Media message read to the court said.
“It is concerning no one stepped in and stopped it sooner.
“There was serious bullying in the workplace.”
Sandilands settled his wrongful termination case with ARN Media in June for $12 million and has since launched a new subscription-based show online.
Henderson’s case is expected to go to trial in October.