Australian Competition and Consumer Commission v Link Solutions Pty Ltd (No 2) [2010] FCA 919

Australian Competition and Consumer Commission v Link Solutions Pty Ltd (No 2) [2010] FCA 919

The case against Enterprise Finance Solutions and CIT Group (Australia) for accessorial liability under s 75B fails because there was no evidence they knew Axis Telecoms required customers to acquire equipment from a specified finance company or panel as a condition of call credits, as required under the proper construction of 'another person' in s 47(6) Trade Practices Act. Summary judgment is granted in their favour. Leave is granted to the applicant to replead regarding other respondents and aspects of the case.

Parties
Applicant: Australian Competition and Consumer Commission; Applicant: Mark Pearson; Respondent: Link Solutions Pty Ltd ACN 126 049 214; Respondent: Service LS Pty Ltd ACN 103 836 326; Respondent: Axis Telecoms Pty Ltd ACN 126 049 205; Respondent: Service AT Pty Ltd ACN 076 804 718; Respondent: Sonofon Pty Ltd ACN 126 249 625; Respondent: Service SO Pty Ltd ACN 103 970 627; Respondent: Telecom One Pty Ltd ACN 126 049 394; Respondent: Service TO Pty Ltd ACN 116 646 916; Respondent: George Tawaf; Respondent: Mark Nesbitt; Respondent: John Masia; Respondent: Barry Kennedy; Respondent: WorldTel (Aust) Pty Ltd ACN 105 597 091; Respondent: WorldTel Corporation (Victoria) Pty Ltd ACN 109 699 425; Respondent: Skylink Communications Pty Ltd ACN 112 018 809; Respondent: Romeo Wehbe; Respondent: Manoel Wehbe; Respondent: Fakhr Fakhr; Respondent: Joseph Ayoub; Respondent: Australian Integrated Finance Pty Ltd ACN 078 700 044; Respondent: Enterprise Finance Solutions Pty Ltd ACN 101 737 204; Respondent: CIT Group (Australia) Limited ACN 065 745 735; Respondent: Queensland Communication Company Pty Ltd ACN 126 049 385; Respondent: Service QCC Pty Ltd ACN 113 079 600; Respondent: Clear Communications (Euraust) AB; Respondent: Clear Telecoms (Aust) Pty Ltd ACN 129 296 573; Respondent: Anthony Hakim; Respondent: National Telecoms Group Pty Ltd ACN 094 312 704
Jurisdiction
Australia
Judgment Date
25 August 2010
Procedural Posture
Civil / Interlocutory (summary Judgment and Strike Out Applications, Leave to Replead Granted)
Outcome
Partial summary judgment granted (EFS and CIT). Leave to replead granted. Other summary judgment applications dismissed.
Legal Topics
Exclusive Dealing, Third Line Forcing, Summary Judgment, Pleadings, Accessorial Liability
Competition Law Consumer Law Exclusive Dealing Third Line Forcing Summary Judgment Pleadings Accessorial Liability

Case Brief

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Parties

Australian Competition and Consumer Commission

Applicant

Mark Pearson

Applicant

Link Solutions Pty Ltd ACN 126 049 214

Respondent

Service LS Pty Ltd ACN 103 836 326

Respondent

Axis Telecoms Pty Ltd ACN 126 049 205

Respondent

Service AT Pty Ltd ACN 076 804 718

Respondent

Sonofon Pty Ltd ACN 126 249 625

Respondent

Service SO Pty Ltd ACN 103 970 627

Respondent

Telecom One Pty Ltd ACN 126 049 394

Respondent

Service TO Pty Ltd ACN 116 646 916

Respondent

George Tawaf

Respondent

Mark Nesbitt

Respondent

John Masia

Respondent

Barry Kennedy

Respondent

WorldTel (Aust) Pty Ltd ACN 105 597 091

Respondent

WorldTel Corporation (Victoria) Pty Ltd ACN 109 699 425

Respondent

Skylink Communications Pty Ltd ACN 112 018 809

Respondent

Romeo Wehbe

Respondent

Manoel Wehbe

Respondent

Fakhr Fakhr

Respondent

Joseph Ayoub

Respondent

Australian Integrated Finance Pty Ltd ACN 078 700 044

Respondent

Enterprise Finance Solutions Pty Ltd ACN 101 737 204

Respondent

CIT Group (Australia) Limited ACN 065 745 735

Respondent

Queensland Communication Company Pty Ltd ACN 126 049 385

Respondent

Service QCC Pty Ltd ACN 113 079 600

Respondent

Clear Communications (Euraust) AB

Respondent

Clear Telecoms (Aust) Pty Ltd ACN 129 296 573

Respondent

Anthony Hakim

Respondent

National Telecoms Group Pty Ltd ACN 094 312 704

Respondent

Procedural Posture

Civil / Interlocutory (summary Judgment and Strike Out Applications, Leave to Replead Granted)

Legal Issues

  1. 1 Construction of 'another person' in s 47(6) Trade Practices Act
  2. 2 Attributes of compulsion and futurity in s 47(6)
  3. 3 Knowledge requirements for accessorial liability under s 75B

Ratio Decidendi

The case against Enterprise Finance Solutions and CIT Group (Australia) for accessorial liability under s 75B fails because there was no evidence they knew Axis Telecoms required customers to acquire equipment from a specified finance company or panel as a condition of call credits, as required under the proper construction of 'another person' in s 47(6) Trade Practices Act. Summary judgment is granted in their favour. Leave is granted to the applicant to replead regarding other respondents and aspects of the case.

Court Disposition

Partial summary judgment granted (EFS and CIT). Leave to replead granted. Other summary judgment applications dismissed.

Orders

  • The matter be stood over to 30 August 2010 at 9:30 am for consideration of proposed orders.
  • Applicant's amended statement of claim struck out as against EFS and CIT; leave granted to file second amended statement of claim.