Telstra Corp Pty Ltd v First Netcom Pty Ltd [1997] FCA 630

CATCHWORDS

INTERLOCUTORY INJUNCTION - serious question to be tried - difficulty of assessing merits of substantive claims in interlocutory proceedings - whether one party's refusal to pay bills to the other party is based on a genuine and bona fide dispute - balance of convenience - maintenance of status quo until final determination - whether one party should be compelled to continue to supply services to another when bills remain unpaid - what measures can be taken to secure future liabilities between the parties - whether threat to substantial portion of one party's business justifies an injunction to maintain the status quo - whether comparable damage is likely to be incurred by continued non-payment of bills rendered TELSTRA CORPORATION PTY LTD v FIRST NETCOM PTY LTD NG 483 of 1997 EINFELD J SYDNEY 16 JULY 1997

IN THE FEDERAL COURT OF AUSTRALIA) NEW SOUTH WALES DISTRICT REGISTRY) No.NG 483 of 1997 GENERAL DIVISION ) Between:TELSTRA CORPORATION LTD Applicant And: FIRST NETCOM PTY LTD Respondent MINUTE OF ORDERS The Court orders that: 1. Upon the respondent by its counsel undertaking to pay to any party adversely affected by the interlocutory injunction such compensation (if any) as the Court thinks just, in such manner as the Court directs: (a) the applicant be restrained from communicating with the respondent's customers in the terms or to the effect of the draft letter enclosed with a letter from the applicant to the respondent dated 6 June 1997, and (b) the applicant be restrained until further order from discontinuing the supply of tariffed services to the respondent for the reasons set out in the said letter. 2. The applicant's application for security for the undertaking as to damages be adjourned until: (a) a substantive motion and affidavit(s) have been filed (b) the applicant has had an opportunity to explore the respondent's offer to consider a payment regime for future services, (c) the possibilities for mediation or arbitration have been considered, and