Tenix raises damages claim on Oakton to $26m

Tenix raises damages claim on Oakton to $26m

Oakton is expecting the claimed amount to rise further but maintains there's no foundation for the claim or its amount

The legal battle between Oakton and Tenix Solutions has escalated after the infrastructure company upped its damages claim.

Tenix is placing the value of its claim at $26 million, an increase of $7m on the original $19m in damages it was seeking from the services provider. In a statement to the ASX, Oakton (ASX:OKN) said it expected the alleged amount to increase as time went on, but maintained there was no foundation for the claim or the amount of it.

Oakton began legal proceedings against the traffic infringement and management brand of Tenix in March, claiming damages exceeding $12m. The amount includes $8.5m receivable and also the delay and increased costs of working claims, legal costs and interest.

Oakton alleges Tenix wrongfully repudiated a subcontract for the provision of services by Oakton in relation to the design, building and testing of software to be used by the company.

Tenix is seeking to stay proceedings to refer the service provider’s claims and Tenix’s own claims to arbitration. Oakton said it was opposing the application on the basis of Tenix’s conduct regarding disputes under a subcontract between the two organisations, and Tenix’s wrongful repudiation of it.

Directions in Supreme Court of Victoria were made on March 26, and a hearing for Tenix’s stay application is slated for April 16.

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