Mobile giant, Vodafone, has won a sizeable part of its appeal against the Supreme Court’s award of damages claims to mobile phone reseller, Mobile Innovations.
The NSW Supreme Court had initially ruled in April 2003 that the reseller was owed $14 million plus costs and damages following a lengthy law suit.
The ruling stated that Vodafone had failed to provide Mobile with upwards of 30,000 additional customers.
Mobile had claimed that Vodafone was in breach of its 10-year agent service provider (ASP) agreement which would see Mobile connecting subscribers to Vodafone’s network by direct marketing.
The company maintains that Vodafone breached an exclusive agreement by reducing its customer acquisition targets from 4000 customers a month to zero for certain areas.
A ruling that Mobile did not have the rights to exclusive direct marketing as part of its agreement is currently under appeal.
Following the latest ruling, the court will now uphold much of Vodafone’s appeal against the court’s earlier ruling.
“We definitely did not think that Vodafone would win its appeal,” Mobile CEO, Ilkka Tales, said. “We were quite surprised by the result.”
However, Mobile would still receive about half of the original award, he said.
Although Mobile is now required to pay for 80 per cent of Vodafone’s appeal costs, Vodafone is ordered to pay for 25 per cent of Mobile’s trial costs.
“Their appeal lasted for three days, whereas our trial lasted for 20 days,” Tales said. “This could work out slightly in our favour.”
The reseller has been given three weeks to decide whether or not it will take its case to a higher court.