Oakton subsidiary, Oakton Services, has gone on the offensive, issuing proceedings in the Commercial Court of the Supreme Court of Victoria against Tenix Solutions IMES.
The move follows the February announcement that the Oakton Services had been hit by Tenix for close to $20 million in damages following the break-down of arbitration between the two companies.
Tenix had served Oakton’s contracting subsidiary with a notice “purporting to terminate the relevant contract” and a claim for damages estimated $19,364,900. According to Oakton, the action followed a series of issues with a project involving the company and Tenix,
Oakton said Tenix’s notice was preceded by the referral to arbitration by Oakton of several disputes arising from the contract and it had referred the notice to its lawyers.
Oakton told the ASX last week that it was alleging in its writ and statement of claim that Tenix had wrongfully repudiated a subcontract for the provision of services by Oakton relating to the design, building and testing of software to be used by Tenix as part of an Infringement Management and Enforcement System which Tenix is required to build and operate under contract between Tenix and the State of Victoria.
As a result of the proceedings Oakton is claiming damages exceeding $12 million.
The company said this figure included the $8.5 million receivable disclosed in Oakton’s 31 December 2009 financial results. The balance of $3.5 million is being claimed for delay and increased cost of working claims, legal costs and interest.
“Oakton has rejected Tenix’s claims of Oakton’s alleged breaches and Tenix’s purported termination of the subcontract….,” the ASX statement reads. “Oakton intends to press the processing and will vigorously defend any counterclaim Tenix might make.”