Galilee Solicitors Pty Ltd v Ethan Group Pty Ltd [2021] NSWSC 1067

Galilee Solicitors Pty Ltd v Ethan Group Pty Ltd [2021] NSWSC 1067

The order restrained Ethan only from deliberately taking steps, or deliberately omitting to take steps, meaning to and for the purpose of ceasing to provide the contracted managed services. It did not require Ethan to take steps to ensure that it did not unknowingly and unintentionally cease to provide those services. Because Galilee's charge alleged only a failure to take adequate and continuing steps to ensure licensor notifications came to senior officers or employees, and did not allege actual knowledge of the impending SEP end of life, the alleged conduct, even if proved beyond reasonable doubt, would not constitute a breach of the order. The contempt motion was therefore dismissed.

Jurisdiction
Australia
Judgment Date
25 August 2021
Procedural Posture
Equity Commercial List Contempt Motion in Commercial Proceedings Concerning Fees for Information Technology Services / Amended Notice of Motion for Contempt Arising From Alleged Breach of Interim Consent Order
Outcome
Contempt motion dismissed with costs.
Legal Topics
['civil Contempt' 'construction of Court Orders' 'interim Injunctions' 'consent Orders' 'managed Information Technology Services' 'costs Payable Forthwith']
['contempt of Court' 'civil Procedure' 'equity' 'contract Law' 'australian Consumer Law'] ['civil Contempt' 'construction of Court Orders' 'interim Injunctions' 'consent Orders' 'managed Information Technology Services' 'costs Payable Forthwith']

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Procedural Posture

Equity Commercial List Contempt Motion in Commercial Proceedings Concerning Fees for Information Technology Services / Amended Notice of Motion for Contempt Arising From Alleged Breach of Interim Consent Order

Legal Issues

  1. 1 ['Whether Ethan breached the interim order restraining it from suspending, terminating or otherwise intentionally ceasing to provide managed services it was contractually obliged to provide to Galilee.' 'Whether the word "intentionally" in the order meant deliberately acting or omitting to act with the purpose of ceasing to provide the services, or merely conduct that was not unintentional.' "Whether Ethan's alleged failure to take adequate and continuing steps to ensure software licensor notifications came to senior officers or employees could constitute a breach of the order." "Whether Galilee should pay Ethan's costs of the contempt motion forthwith."]

Ratio Decidendi

The order restrained Ethan only from deliberately taking steps, or deliberately omitting to take steps, meaning to and for the purpose of ceasing to provide the contracted managed services. It did not require Ethan to take steps to ensure that it did not unknowingly and unintentionally cease to provide those services. Because Galilee's charge alleged only a failure to take adequate and continuing steps to ensure licensor notifications came to senior officers or employees, and did not allege actual knowledge of the impending SEP end of life, the alleged conduct, even if proved beyond reasonable doubt, would not constitute a breach of the order. The contempt motion was therefore dismissed.

Court Disposition

Contempt motion dismissed with costs.

Orders

  • ['Dismiss the amended notice of motion filed by the plaintiff on 3 March 2021, including the Amended Statement of Charge.' "Order the plaintiff to pay the defendant's costs of the amended notice of motion referred to in order 1 above, as agreed or assessed." 'Order that the costs payable by the plaintiff pursuant to...