ARN

CSG loses Fuji Xerox court appeal

NSW Supreme Court found the vendor had validly terminated CSG’s dealership agreements in Brisbane and Maroochydore.

IT services provider, CSG, has lost its appeal to Fuji Xerox Australia in the NSW Supreme Court.

In August last year, Fuji Xerox issued proceedings against the ASX-listed provider (ASX:CSV) in the NSW Supreme Court to determine whether its relationship termination was valid and that it met the obligations of both parties post termination.

Three months later, Justice McDougall made orders requiring CSG to provide the print vendor with signed deeds of novation, which can be forwarded to CSG Fuji Xerox customers in Brisbane and Maroochydore to allow them to decide if they wanted to continue getting services via CSG or Fuji Xerox. The integrator planned to appeal the decision, seeking a stay of the orders.

However, the NSW Supreme Court found in the first instance, the vendor had validly terminated CSG’s dealership agreements in Brisbane and Maroochydore.

In a statement to the ASX, CSG said it was not possible to estimate the cost of damages and aggregated costs, which maybe payable to Fuji Xerox until detailed claims have been lodged and assessed.

Last year, CSG estimated it may suffer pre-tax losses ranging between $3 million to $4 million, after the court decided it must allow customers the choice of signing with Fuji Xerox Australia.

It also stated the total number of machines across Brisbane and Maroochydore represented about 10 per cent of CSG's total number of installed machines across the country.

“However, this would only be the case if every customer in Brisbane and Maroochydore consented to the novation in favour of Fuji Xerox,” CSG said at the time. “Accordingly, the impact this could have on CSG’s business will depend on the number of customers who consent to the novation in favour of Fuji Xerox or choose to stay with CSG… any potential impact on its business following the order is unlikely to be material.”

The services provider terminated its relationship with Fuji Xerox in favour of its $31 million Canon agreement.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Canon, CSG, Fuji, Fuji Xerox, Xerox
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the ARN comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: CSG Limited, Fuji Xerox Australia, NSW Supreme Court
ARN Directory | Distributors relevant to this article
ACA Pacific , Alloys , ASI Solutions , Express Online , Impact Systems Technology , Leader Computers , Synnex Australia , Topstar Computer International , XiT Distribution , Xpress I.T. , Dynamic Supplies
rhs_login_lockGet exclusive access to ARN's news, research and invitation only events.
ARN Distributor Directory
Find distributors by name | vendor | location
Channel Deals
/deals/aca-pacific/435_fujifilm-lto-10-for-10-promotion-ends-june-30t
ACA Pacific

Fujifilm LTO 10 For 10 Promotion. Ends June 30th, 2012.

More details »
ARN Vendor Directory
Find vendors by name | category

iAsset is a channel management ecosystem that automates all major aspects of the entire sales,marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.