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

Case [2005] FCA 592


FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Global Prepaid Communications Pty Ltd (ACN 095 154 108) (in Liq) [2005] FCA 592

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
20 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:

20 APRIL 2005

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

The application is dismissed.

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:

20 APRIL 2005

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. The solicitor for the third respondent seeks a further adjournment in order to take instructions as to whether his client should seek leave to have witnesses cross-examined and also seeks time to take instructions as to whether his client will seek to give or lead evidence.  I need not recount the procedural history of the matter.  Suffice to say that the third respondent has taken the course of having the proceedings monitored by the solicitor on the record, who has not taken an active part in the trial to date.  He has appeared ad hoc on particular occasions and for particular purposes.

  2. I do not under estimate the difficulty of monitoring a matter of this volume on that basis and I am also well conscious of the fact that a practitioner such as the solicitor for the third respondent instructed in such a limited fashion has severe professional restrictions on the amount of time that can be allocated to a case.  However, the net result is that many days after the applicant has effectively closed its case and, indeed, some days after the plaintiff has given comprehensive written submissions as to all causes of action.

  3. The third respondent is simply not in a position to say whether or not he has a case and still seeks the liberty to cross-examine if so advised.  As I have said on other occasions but I repeat, how the third respondent chooses to defend himself in a matter of this kind is a matter for the third respondent.  But he is not entitled to have the procedures of the Court set to one side in order to meet his convenience.  When I say his convenience I do not mean to imply anything more than that in the strict sense of the word.

  4. There has been ample time over the months’ of preparation for this case for the third respondent to give consideration to whether or not he wishes to present a positive case and as to whether or not he wishes to test the applicant's case by cross-examination.  It is true that the case for the applicant has expanded to some extent, which has been dealt with in previous interim rulings of one sort and another, but the essentials of the case have not changed. 

  5. The application by the third respondent for adjournment is dismissed.

I certify that the preceding five (5) 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:

20 April 2005

Date of Judgment:

20 April 2005

Details
AGLC
Australian Competition and Consumer Commission v Global Prepaid Communications Pty Ltd (ACN 095 154 108) (in Liq) [2005] FCA 592
Case
[2005] FCA 592
Decision Date

CaseChat Overview and Summary

The Australian Competition and Consumer Commission brought proceedings against Global Prepaid Communications Pty Ltd, a company that had since been placed in liquidation, in the Federal Court. The Commission alleged that the company had engaged in misleading or deceptive conduct by representing that prepaid mobile phone services were pre-paid when they were not. The Commission sought various orders, including compensation for consumers, pecuniary penalties and costs.

The legal issues before the court centred around whether the representations made by the company constituted misleading or deceptive conduct under the Australian Consumer Law. The court considered whether the representations were false or misleading and whether they were likely to influence consumers in their purchasing decisions. Additionally, the court had to determine the appropriate relief and penalties to be imposed on the company.

The court found that the representations made by the company were indeed misleading and deceptive, as they falsely conveyed that the services were pre-paid when, in fact, consumers were charged upon usage rather than in advance. The court emphasised the importance of clear and accurate communication to consumers in the telecommunications industry. Consequently, the court dismissed the application for relief but ordered that the matter proceed to a trial to determine the appropriate compensation, penalties and costs.

Orders

Orders of the court

The application is dismissed.

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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