On-line Consulting P/L v. Landmark Systems Corporation & Anor [1994] FCA 1005

JUDGMENT No. ...22,08, 7k.

IN THE FEDERAL COURT OF AUSTRALIA ) ) NEW SOUTH WALES DISTRICT REGISTRY ) NG 857 of 1994 ) GENERAL DIVISION ) ON-LINE CONSULTING PTY LIMITED Applicant LANDMARK SYSTEMS CORPORATION AND ANOR Respondent Coram: Whitlam J Place: Sydney Date: 8 December 1994

: * EDERAL COURT OF REASONS FOR JUDGMENT AUSTRALIA

PRINCIPAL

(EX TEMPORE)

The parties are agreed that the application herem be dismissed. The only

question to be resolved 1s the question of costs of the application.

It is a curious application smasmuch as what it sought was relief restraining the first and second respondents from representing that the first respondent had validly termmated an agreement and that the applicant had breached that agreement. Stated in that way, it shows that the application really begs the question, which is whether there

was an entitlement to terminate the agreement.

2.

One may well envisage circumstances in which the making of such representations could be misleading or deceptive conduct, which ought to be enjomed under the Trade Practices Act. Such a circumstance might emst where there had been some adjudication of entitlement to terminate by a competent tribunal. However, the situation m the market place when there is a commercial dispute between two organisations, each of whom asserts its rights - one to have terminated, and the other to resist the purported

termination and to insist upon performance of the contract, is in the normal

circumstances something that can be worked out in the market place.

Here it is common ground between the parties that the question of the entitlement will be resolved in the courts of Virginia, which jumsdiction the agreement expressly provides shall furnish not simply the law to be applied, but also the forum to decide the question. [ am informed by the parties that proceedings are already on foot