Tenix pays Oakton $15 million in court settlement

Tenix pays Oakton $15 million in court settlement

The two companies settle their legal battle in regards to a contractual dispute that erupted last year

ASX-listed integrator, Oakton (ASX:OKN), will walk away with $15 million after settling its contractual dispute with Tenix.

Oakton began its legal battle with the traffic infringement and management arm of Tenix in March last year.

The integrator alleged Tenix, wrongfully repudiated a subcontract for the provision of services relating to the design, building and testing of software to be used by Tenix.

The software was part of an Infringement Management and Enforce system required to build and operate under a contract between Tenix and the State of Victoria.

The legal battle escalated after Tenix upped its damages claim to $26 million. At the time, Oakton said there was no foundation for the claim or the amount.

In a statement to the ASX, Oakton said both parties settled without any admission of liability and current arbitration will not proceed any further. Supreme Court proceedings issued by Oakton will also be discontinued.

In February Oakton reported a disappointing start to the 2011 financial year with revenue falling 4 per cent and earnings before tax decreasing 32 per cent to $11.2 million. Key contributors to the result were put down the poor performance of its Victorian branch and $2.1 million in legal expenses on the Tenix dispute.

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