Intellihub Ltd v Genesis Energy Ltd

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IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA

 CA285/2020
 [2020] NZCA 344

BETWEEN

INTELLIHUB LIMITED
Appellant

AND

GENESIS ENERGY LIMITED
First Respondent

ADVANCED METERING SERVICES LIMITED TRADING AS VECTOR AMS
Second Respondent

Hearing:

27 July 2020

Court:

Collins, Peters and Whata JJ

Counsel:

J D McBride and A W McDonald for Appellant
S J P Ladd with B A Keown and D M Scholes for First Respondent
S M Hunter QC with I Rosic and S T Coupe for Second Respondent

Judgment:

13 August 2020 at 9.00 am

JUDGMENT OF THE COURT

AThe applications for leave to adduce further evidence are granted.

BThe appeal is dismissed.

CThe appellant must pay the first and second respondents costs for a standard appeal on a band A basis and usual disbursements.  We certify for two counsel.

____________________________________________________________________

REASONS OF THE COURT

(Given by Collins J)

Introduction

  1. Intellihub Ltd (Intellihub) and Advanced Metering Services Ltd (Vector) compete with each other to supply electricity meters.  Genesis Energy Ltd (Genesis) is a retailer of electricity and other energy products.  Approximately 45,000 Genesis customers use meters that are owned and operated by Intellihub.

  2. In October 2019, Genesis entered into a contract with Vector for the supply of new meters and required Vector to decommission the Intellihub meters used by Genesis customers.  Genesis agreed to defer the commencement of this project until 1 April 2020 because of the potential impact its new business arrangements will have on Intellihub.

  3. On 18 March 2020, Intellihub commenced proceedings against Genesis and Vector.  It also sought an interim injunction to prevent Genesis and Vector decommissioning Intellihub’s meters, pleading that Genesis is:

    (a)intentionally causing harm to Intellihub by unlawful means (unlawful means cause of action); and

    (b)in breach of an implied term of its contract with Intellihub whereby, according to Intellihub, Genesis is required to give three to five years’ notice to displace Intellihub’s meters (breach of contract cause of action).

No cause of action is pleaded against Vector.

  1. In a judgment delivered on 24 April 2020, Katz J dismissed Intellihub’s application for an interim injunction.[1]  The High Court Judge held:

    (a)there was no serious question to be tried in relation to the unlawful means cause of action;

    (b)there was a serious question to be tried in relation to the breach of contract cause of action;

    (c)the balance of convenience weighed against issuing an interim injunction; and

    (d)the overall justice of the case also weighed against issuing an interim injunction.

  2. The issues raised by Intellihub’s appeal are encapsulated in the following questions:

    (a)Did the High Court apply the correct legal test when determining there was no serious question to be tried in relation to the unlawful means cause of action?

    (b)Did the High Court err when concluding there was no serious question to be tried in relation to the unlawful means cause of action?

    (c)Did the High Court err when concluding the balance of…

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Details
Case
[2020] NZCA 344
Decision Date

CaseChat Overview and Summary

Intellihub Ltd (Intellihub) appealed the decision of Katz J to dismiss its application for an interim injunction. Intellihub sought the injunction to prevent Genesis Energy Ltd (Genesis) from decommission meters owned by Intellihub and operated by Advanced Metering Services Ltd (Vector). Intellihub argued that Genesis was acting unlawfully by requiring Vector to decommission its meters and that Genesis was in breach of contract for failing to give Intellihub sufficient notice to displace its meters. The appeal was dismissed. The Court found there was no serious question to be tried in relation to the unlawful means cause of action. It was not seriously arguable that Genesis intended to harm Intellihub by interfering with Vector’s ability to deal with Intellihub. Nor was it seriously arguable that Intellihub had an economic interest in Vector. The balance of convenience weighed against the granting of an interim injunction. The Court found the impact of the injunction on Vector, an innocent third party, was significant and damages would be an adequate remedy for any loss suffered by Intellihub. The appeal was dismissed and Intellihub ordered to pay costs.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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