Globex Systems in contempt of Federal Court orders
The Federal Court has fined a supplier of industrial cleaning products and ink cartridges $4,900 for contempt of orders made by the court in early 2005.
Globex Systems Pty Ltd was also ordered to pay indemnity costs to the ACCC.
The contempt proceedings arose out of legal proceedings by the ACCC against Globex, its directors and two of its employees, for alleged false representations and misleading and deceptive conduct by representing that particular people agreed to buy cleaning products or ink cartridges from the company and by representing that the ink cartridges were new. The legal proceedings also allege that Globex asserted a right to payment for unsolicited goods.
The ACCC sought interim injunctions and on 10 January 2005 the court made orders by consent which included orders restraining Globex from:
making representations to the effect that a person:
has ordered goods or a certain quantity of goods
has entered into an agreement to purchase goods
is required to take delivery of goods, or
must take further delivery of goods to complete an agreement with Globex,
where any of those representations is not true;
asserting or representing a right to payment where Globex does not have reasonable cause to believe that there is a right to payment.
On 18 February 2005, the ACCC filed a notice of motion against Globex alleging it had breached the court's orders by making representations to an association in early February 2005 that the association had ordered ink cartridges, had entered into an agreement to purchase ink cartridges from Globex and was required to take delivery of ink cartridges from Globex, when the representations were not correct.
Globex admitted that it had breached the court's orders as alleged by the ACCC. A hearing in relation to the penalty to be ordered against Globex was held before Justice Bruce Lander. Today Justice Lander ordered Globex to pay a fine of $4,900 for its contempt of the court's orders.
The matter is continuing and has been listed for directions on 8 August 2005.
