Clive Palmer's lawyers lodge last-minute "clean hands" defence in court battle with Sino Iron over disputed $12m Clive Palmer is involved in a legal dispute with Sino Iron Source: News Corp Australia MINING magnate and politician Clive Palmer has lodged a last-minute "clean hands" legal defence which could delay the outcome of a trial which alleges his involvement in "fraudulent and dishonest payments." A three-day civil action launched by Mr Palmer's estranged Chinese business partner Sino Iron is set to go to trial next week in the Supreme Court of Queensland. The case relates to the alleged misuse of $12.167 million taken from a bank account intended for the management of a port. Court documents have shown much of the disputed $12.167 million withdrawn shortly before the September 7, 2013 election ended up going towards political advertising and into the Palmer United Party's coffers. But lawyers for the Federal MP have started a "clean hands" defence, discussed in a case review this morning, arguing that his company Mineralogy had been wronged by Sino Iron referring to matters being heard in the Western Australian Federal and Supreme Courts. If the argument succeeds it would effectively mean Sino Iron could not sue Mr Palmer because its hands were "not clean" in the dispute. Sino Iron has applied to have this section of Mr Palmer's defence struck out, claiming it was an abuse of process and raised late. The WA court matters are not expected to be resolved until at least next year. Justice David Jackson said the civil trial would proceed next Wednesday as planned and reserved his decision on the "clean hands" argument until then. Mr Palmer's barrister Simon Couper said resolving the "clean hands" defence would be a long and complex matter unable to be resolved in the three days set aside for the trial. The WA court cases Mineralogy claims that Sino Iron had breached Facilities Deeds in relation to an iron ore joint venture in WA. Mr Palmer has repeatedly denied any wrongdoing, arguing the account was not a trust.