Warrnambool City Council will abide by a Supreme Court decision and reinstate sacked chief executive officer Peter Schneider.
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Warrnambool mayor Vicki Jellie said the council respected and would abide by the decision announced by Justice Michael McDonald in the Supreme Court on Friday morning.
"In July last year the previous council made a decision to dismiss the then chief executive officer Peter Schneider," she said.
"This decision was contested in the Supreme Court and the court has found in Mr Schneider's favour.
"Council is now awaiting further instructions from our lawyers regarding the specific directions of the court.
"We will need to understand the costs and will need to make allowance in the annual budget for the 2021-22 year, which we are in the process of finalising.
"At this stage there will be no further comment as both parties are preparing submission in relation to costs."
Mr Schneider has in the past said he wanted to return as CEO of the Warrnambool City Council.
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