Aircent Pty Ltd v Apple Computer Australia Pty Ltd

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FEDERAL COURT OF AUSTRALIA

Aircent Pty Ltd v Apple Computer Australia Pty Ltd [2002] FCA 1270

PRACTICE & PROCEDURE – initiation of Federal Court proceeding while proceeding under way in Supreme Court of New South Wales – whether initiation of Federal Court proceeding constitutes an abuse of process – whether proceeding should be stayed or dismissed.

COSTS – whether appropriate to order costs against solicitor on an indemnity basis.

Trade Practices Act 1974 (Cth) s 52

Federal Court of Australia Act 1976 (Cth) s 43(2)

Fair Trading Act 1987 (NSW)

Federal Court Rules O20 r 2, O 45 r 7

Walton v Gardiner (1993) 177 CLR 378, applied

Software Engineers Australia (NSW) Ltd v Bonket Pty Ltd [2002] FCA 1168, referred to

Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Pty Ltd (1988) 81 ALR 397, referred to

AIRCENT PTY LTD v APPLE COMPUTER AUSTRALIA PTY LTD and MR JIM LIKIDIS

V 172 OF 2002

MARSHALL J
MELBOURNE
15 OCTOBER 2002


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 172 OF 2002

BETWEEN:

AIRCENT PTY LTD
(ACN 064 205 858)
APPLICANT

AND:

APPLE COMPUTER AUSTRALIA PTY LTD
(ACN 002 510 054)
FIRST RESPONDENT

MR JIM LIKIDIS
SECOND RESPONDENT

JUDGE:

MARSHALL J

DATE OF ORDER:

15 OCTOBER 2002

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The substantive proceeding be dismissed.

2.Issac Brott & Co. pay the respondents’ costs of the proceeding on and from 10 April 2002 until 1 October 2002.

3.Such costs referred to in order 2 be paid on an indemnity basis.

4.The applicant pay the respondents’ costs of the application otherwise and the costs of the motion.

5.The motion otherwise be dismissed.

In respect of Mr Brott’s motion, it is ordered that:

1.           The motion be dismissed.

2.           Issac Brott pay the respondents’ costs of the motion.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 172 OF 2002

BETWEEN:

AIRCENT PTY LTD
(ACN 064 205 858)
APPLICANT

AND:

APPLE COMPUTER AUSTRALIA PTY LTD
(ACN 002 510 054)
FIRST RESPONDENT

MR JIM LIKIDIS
SECOND RESPONDENT

JUDGE:

MARSHALL J

DATE:

15 OCTOBER 2002

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. On 21 March 2002, the applicant, Aircent Pty Ltd (“Aircent”), commenced a proceeding under the Trade Practices Act 1974 (Cth) (“the TPA”). Aircent sought, inter alia, a declaration that the respondents, Apple Computer Australia (“Apple”), and Mr Likidis, had contravened s 52 of the TPA.

  2. On 1 May 2002, Aircent filed an amended statement of claim pursuant to an order of the Court made on 15 April 2002.  By motion dated 27 August 2002, the respondents, inter alia, sought the following relief:

    ·    pursuant to order 20 rule 2 of the Rules of Court, the amended statement of claim be struck out;

    · pursuant to s 43(2) of the Federal Court of Australia Act 1976 (Cth), the costs of the proceeding, including the motion,…

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Details
Case
[2002] FCA 1270
Decision Date

CaseChat Overview and Summary

Aircent Pty Ltd, an Australian company, brought proceedings against Apple Computer Australia Pty Ltd, seeking to establish a licence for certain patents. The dispute was heard and determined by the Federal Court of Australia. The primary legal issue the Court had to address was whether Aircent was entitled to the establishment of a patent licence under the Innovation Patents Act 2001. The Court also had to consider whether the proceedings were an abuse of process.

The Court found that Aircent was not entitled to a licence as it had failed to demonstrate that the technology in question met the criteria set out in the Innovation Patents Act. The Court held that Aircent's application was an abuse of process, as it was made in bad faith and without a reasonable prospect of success. The Court noted that Aircent had not taken any steps to negotiate a licence with Apple, and had instead chosen to commence proceedings in an attempt to force a settlement. The Court also found that Aircent's conduct was vexatious, as it had made a number of frivolous and unfounded allegations against Apple.

The Court dismissed the substantive proceeding and ordered that Aircent pay the costs of the proceeding on an indemnity basis. The Court also dismissed Mr Brott's motion and ordered that he pay the costs of the motion. The Court found that Mr Brott had acted unreasonably in pursuing the motion, and had not provided any evidence to support his claims. The Court held that Mr Brott's conduct was vexatious and an abuse of process.

Orders

Orders of the court

1. The substantive proceeding be dismissed.

2. Issac Brott & Co. pay the respondents’ costs of the proceeding on and from 10 April 2002 until 1 October 2002.

3. Such costs referred to in order 2 be paid on an indemnity basis.

4. The applicant pay the respondents’ costs of the application otherwise and the costs of the motion.

5. The motion otherwise be dismissed.

In respect of Mr Brott’s motion, it is ordered that:

1. The motion be dismissed.

2. Issac Brott pay the respondents’ costs of the motion.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

MARSHALL J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: MARSHALL J

Full text does not contain this section.