Global Pre Paid Communications Pty Ltd and In-Touch Networks Pty Ltd
ss. 52 and 51AD. Misleading or deceptive conduct, contravention of industry codes
19 March 2003: Proceedings were instituted in the Federal Court, Sydney.
9 April 2003: The first directions hearing was held at which Justice Gyles ordered timelines for requests for further and better particulars and filings of defences.
11 June 2002: The companies were placed under external administration.
17 July 2003: At the second directions hearing Justice Gyles ordered that the applicant file and serve the ACCC’s amended statement of claim by 21 July 2003; that the respondent file and serve their defences by 18 August 2003; and that the respondent could make any notice of motion (in relation to pleadings) by 13 August 2003.
25 July 2003: A notice of motion was made seeking orders for substituted service on two individuals yet to be served. The court agreed with the ACCC’s proposed orders regarding service and all individuals have since been served.
7 August 2003: A notice of motion was filed by third and fourth respondents to strike out the statement of claim and on 13 August 2003 the strike out application was heard. Judgment was reserved.
31 October 2003: The statement of claim was stuck out and the ACCC was given 28 days to file an amended statement of claim. In his judgment Justice Gyles was not critical of the ACCC and was also sympathetic to the difficulty in drafting a statement of claim of this nature.
28 November 2003: Justice Gyles ordered an extension on filing the further amended statement of claim which was then filed on 18 December 2003. A further directions hearing was scheduled for 19 April 2004.
19 April 2004: Justice Gyles ordered that the respondent’s defences be filed by 24 May 2004, the applicant’s evidence be filed by 13 August 2004 and set a next directions hearing for 24 August 2004, with the respondents ordered to file their affidavit evidence by 27 August 2004. Justice Gyles also indicated that a trial date of mid-March 2005 appeared likely.
18 June 2004: A directions hearing was requested by the Commission due to the respondents failure to file their defences by the return date. The Judge ordered that the defences be filed by 2 July 2004 and that the applicant's evidence was still to be filed by 13 August 2004. The Judge ordered that the costs of the days proceedings be the costs of the respondents and re-listed the matter for 24 August, as had previously been set down.
24 August 2004: A directions hearing was held and the Commission requested leave to file the evidence within 28 days due to various problems with finalising the affidavit evidence of the national and international witnesses. The Judge agreed as the respondents did not object to the request. The Judge ordered that the next directions hearing be held on 19 December 2004 with the trial likely to be held in March 2004.
19 December 2004: A directions hearing has been set for 15 February with the trial likely to begin on 21 March 2005.
15 February 2005: Directions hearing. The ACCC was granted leave to proceed against two respondents in liquidation and to file amended pleadings. The court also made orders for the filing, service and answer of interrogatories, the notification of the witnesses required for cross-examination and the service of objections to affidavits. A further directions hearing has been set for 11 March with the trial likely to begin on 21 March 2005.
21 March 2005: Hearing for final oral submissions and any matters arising from written submissions scheduled for 12 May 2005.
24 February: The Federal Court, Sydney, ordered $3 538 243.94 in compensation to be paid to 23 small businesses for misleading or deceptive conduct and breaches of the Franchising Code of Conduct.
The ACCC had instituted proceedings in March 2003 against Global Prepaid Communications Pty Ltd, In-Touch Networks Pty Ltd, Mr Nicholas Yates, Mr Frank Yates, Mr Nicholas Rhodin, Mr Daniel Albert and Mr Russell Fielding.
The court declared that Global Prepaid, In-Touch and the five named people contravened s. 52 of the Trade Practices Act and that Global Pre Paid and In-Touch contravened s. 51AD of the Act.
The court also ordered:
a range of injunctions to prevent the respondents engaging in unlawful conduct in future
$3 538 243.94 in compensation to be paid to 23 small businesses
that the respondents pay the ACCC's costs, including reserved costs except as against Global and In-Touch.
20 March 2006: The Third and Fifth respondents appealed the judgement and orders made by Justice Gyles on 24 February 2006. The appeals have been set down for the August sittings of the Full Federal Court in Sydney.
8 August 2006: Justice Jacobson dismissed the appeal by Nicholas Yates and Nicholas Rhodin with costs.
