Australian Competition and Consumer Commission v Global Prepaid Communications Pty Ltd (ACN 095 154 108) (in Liq)

Case [2005] FCA 590


FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Global Prepaid Communications Pty Ltd (ACN 095 154 108) (in Liq) [2005] FCA 590

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v GLOBAL PREPAID COMMUNICATIONS PTY LTD (ACN 095 154 108) (In Liquidation), IN TOUCH NETWORKS PTY LTD (ACN 098 279 746) (In Liquidation), NICHOLAS YATES, FRANK YATES, NICHOLAS RHODIN, DANIEL ALBERT, RUSSELL FIELDING
N 328 OF 2003

GYLES J
14 APRIL 2005
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 328 OF 2003

BETWEEN:

AUSTRALIA COMPETITION AND CONSUMER COMMISSION
APPLICANT

AND:

GLOBAL PREPAID COMMUNICATIONS PTY LTD (ACN 095 154 108) (In Liquidation)
FIRST RESPONDENT

IN TOUCH NETWORKS PTY LTD (ACN 098 279 746) (In Liquidation)
SECOND RESPONDENT

NICHOLAS YATES
THIRD RESPONDENT

FRANK YATES
FOURTH RESPONDENT

NICHOLAS RHODIN
FIFTH RESPONDENT

DANIEL ALBERT
SIXTH RESPONDENT

RUSSELL FIELDING
SEVENTH RESPONDENT

JUDGE:

GYLES J

DATE OF ORDER:

14 APRIL 2005

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.   The applicant be granted leave pursuant to O 13 r 2(1) of the Federal Court Rules to amend the Further Further Amended Statement of Claim.

2.   The Further Further Amended Statement of Claim be amended pursuant to O 13 r 8 of the Federal Court Rules by filing a Notice in accordance with Form 19 specifying the additional pleading set out in the document which is Annexure ‘A’ to this Notice of Motion.

3.   The applicant be granted leave pursuant to O 13 r 2(1) of the Federal Court Rules to file a Further Amended Application to incorporate the additional pleading set out in the document which is Annexure ‘A’ to this Notice of Motion.

4. The applicant be granted leave to include in the Further Amended Application at prayer 33 a claim for interest pursuant to s 51A of the Federal Court of Australia Act 1976 (Cth).

5.   Costs of the motion be reserved.

(Annexure not reproduced)

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


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 328 OF 2003

BETWEEN:

AUSTRALIA COMPETITION AND CONSUMER COMMISSION
APPLICANT

AND:

GLOBAL PREPAID COMMUNICATIONS PTY LTD (ACN 095 154 108) (In Liquidation)
FIRST RESPONDENT

IN TOUCH NETWORKS PTY LTD (ACN 098 279 746) (In Liquidation)
SECOND RESPONDENT

NICHOLAS YATES
THIRD RESPONDENT

FRANK YATES
FOURTH RESPONDENT

NICHOLAS RHODIN
FIFTH RESPONDENT

DANIEL ALBERT
SIXTH RESPONDENT

RUSSELL FIELDING
SEVENTH RESPONDENT

JUDGE:

GYLES J

DATE:

14 APRIL 2005

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. I am satisfied this is an appropriate case to grant the amendments to the Further Further Amended Statement of Claim as outlined in the Notice of Motion at Annexure ‘A’.  I am satisfied the amendments have arisen out of matters which came to light during the course of the recent events and could not have been raised earlier.  Whilst there is no doubt that they are not without their own importance, they relate to a relatively minor part of the case, although, of course, they will lead to the admission of further evidence.  It is appropriate that the pleadings in the case properly reflect the case that is sought to be made. 

  2. The real question is what, if any, terms should flow from the amendment.  I am not satisfied that there should be any special order for costs of the kind referred to by Mr McConnell in his submissions on behalf of the third respondent.  The whole question of costs can be considered in the long run.  This is not such a special application as would require payment of costs in advance, as I was persuaded to require on one previous occasion.

  3. I am also not satisfied that the mere making of the amendments themselves will cause any delay to the proceedings.  They are clear enough on their face.  Where they fit into the case will be very obvious to those affected.  However, as I have noted, the amendments will lead to the tendering of further evidence.  What the consequences of that may be is another matter. At the moment, in view of the procedural history of this matter, it is unlikely that the mere reliance upon that evidence would lead to the need for any adjournment. 

  4. The third respondent for whom Mr McConnell still appears has, for whatever reason, adopted the course of monitoring the proceedings and intervening only on occasion.  As it has been pointed out from time to time, that involves risks on the part of that respondent.  I do not propose to hold up the case to meet the convenience of that respondent or any other respondent who has not been taking a full part in the proceeding.

  5. I also have in mind that it is likely that there will be an adjournment after today to enable submissions to be absorbed.  I will defer ruling on that until the matter unfolds this morning. 

  6. I make the orders sought in the amended notice of motion.  I reserve the costs of the motion. 

I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Gyles.

Associate:

Dated:             13 May 2005

Counsel for the Applicant:

CE Adamson SC, AR Zahra

Solicitor for the Applicant:

Phillips Fox

Solicitor for the Third Respondent:

K McConnell of McConnell Jaffray

Counsel for the Fifth Respondent:

S Chrysanthou

Date of Hearing:

14 April 2005

Date of Judgment:

14 April 2005

Details
AGLC
Australian Competition and Consumer Commission v Global Prepaid Communications Pty Ltd (ACN 095 154 108) (in Liq) [2005] FCA 590
Case
[2005] FCA 590
Decision Date

CaseChat Overview and Summary

The Australian Competition and Consumer Commission brought proceedings against Global Prepaid Communications Pty Ltd, a company in liquidation, alleging breaches of the Australian Consumer Law by engaging in conduct that was misleading or deceptive or likely to mislead or deceive. The dispute was heard in the Federal Court of Australia. The ACCC sought to amend its Statement of Claim to include additional allegations of misleading conduct by Global Prepaid Communications, as well as seeking interest on any monetary awards made against the company. The central legal issues were whether the court should allow the ACCC to amend its Statement of Claim to include additional claims, and whether the court should permit the inclusion of a claim for interest in the Further Amended Application.

The court considered the principles governing amendments to pleadings under the Federal Court Rules, noting that such amendments are permissible if they are just and do not prejudice the respondent. The court also considered whether the proposed amendments related back to the date of the original Statement of Claim, ensuring that the respondent would not be unfairly surprised by the new allegations. Regarding the claim for interest, the court noted the authority under the Federal Court of Australia Act to award interest on any judgment debt and determined that such a claim could be included in the Further Amended Application. The court found that the proposed amendments were just and did not prejudice the respondent, and therefore granted the ACCC's application to amend its Statement of Claim and to include a claim for interest in its Further Amended Application.

The court ordered that the ACCC be granted leave to amend its Statement of Claim to include additional allegations of misleading conduct by Global Prepaid Communications, and to include a claim for interest in its Further Amended Application. The court also ordered that the Further Further Amended Statement of Claim be amended by filing a Notice in accordance with Form 19, specifying the additional pleading. The costs of the motion were reserved for another determination. This outcome allows the ACCC to proceed with its updated claims against Global Prepaid Communications, potentially strengthening its case against the company.

Orders

Orders of the court

1. The applicant be granted leave pursuant to O 13 r 2(1) of the Federal Court Rules to amend the Further Further Amended Statement of Claim.

2. The Further Further Amended Statement of Claim be amended pursuant to O 13 r 8 of the Federal Court Rules by filing a Notice in accordance with Form 19 specifying the additional pleading set out in the document which is Annexure ‘A’ to this Notice of Motion.

3. The applicant be granted leave pursuant to O 13 r 2(1) of the Federal Court Rules to file a Further Amended Application to incorporate the additional pleading set out in the document which is Annexure ‘A’ to this Notice of Motion.

4. The applicant be granted leave to include in the Further Amended Application at prayer 33 a claim for interest pursuant to s 51A of the Federal Court of Australia Act 1976 (Cth).

5. Costs of the motion be reserved.

(Annexure not reproduced)

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

GYLES J

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Ratio Decidendi

Legal Principle Established

Established by: GYLES J

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