Ext User(Alan Parkington)
14-09-2008, 04:20 PM
From
http://www.australianit.news.com.au/story/0,24897,23819652-15306,00.html
EMBATTLED mobile phone retailer Allphones, which is under investigation by
the competition regulator, has hit back at findings in the Federal Court
that it engaged in "calculated dishonesty" and "continuing deceit" against
its retailers.
Allphones claims it is actually the victim in the whole saga.
The Federal Court found last Friday that Allphones withheld commission
payments from its franchisees, and the court was especially critical of
Allphones chief Matthew Donnellan, a one-time lawyer at mobile phone group
Vodafone.
In an email obtained by The Australian, Mr Donnellan explained to staff that
attempts to terminate the franchisees were merely aimed at protecting
customers and the Allphones business.
Pressure is increasing on Allphones chairman Tony Mitchell, as the retailer
is already under investigation by the Australian Competition and Consumer
Commission for a range of alleged breaches of agreements with its
franchisees.
Mr Mitchell, whose role in the operations of the company remains unclear, is
a member of the Rudd Government's expert broadband panel.
The Australian understands that industry figures have urged Senator Conroy
to stand him down from the panel
In a written judgment, Justice Steven Rares said Mr Donnellan knew that the
true commission amounts were being concealed from franchisees.
"(Mr Donnellan) would also lack any understanding of contract law if he
seriously thought that Allphones could avoid paying commission to
franchisees ... by relying on (a clause in the contract) as he asserted,"
Justice Rares wrote.
But Mr Donnellan said the action was necessary. "Had Allphones not acted, we
may have jeopardised our whole franchise system with the cancellation of
carrier agreements," Mr Donnellan wrote.
"Allphones has a zero tolerance policy on these matters and felt obliged to
act in the interest of our franchisees and our carriers."
Allphones said it would consider its options.
Mr Donnellan conceded that Allphones had made a mistake by deducting various
fees introduced in mid-2006, including a $150-per-month fee for IT services
to franchisees and a $50-per-month fee for renting an eftpos machine.
A number of the deficiencies in Allphones' administration that were
highlighted by the decision - from as far back as 2002 - have since been
rectified.
The court case was launched by Sydney Allphones franchisee Hoy Mobile.
http://www.australianit.news.com.au/story/0,24897,23819652-15306,00.html
EMBATTLED mobile phone retailer Allphones, which is under investigation by
the competition regulator, has hit back at findings in the Federal Court
that it engaged in "calculated dishonesty" and "continuing deceit" against
its retailers.
Allphones claims it is actually the victim in the whole saga.
The Federal Court found last Friday that Allphones withheld commission
payments from its franchisees, and the court was especially critical of
Allphones chief Matthew Donnellan, a one-time lawyer at mobile phone group
Vodafone.
In an email obtained by The Australian, Mr Donnellan explained to staff that
attempts to terminate the franchisees were merely aimed at protecting
customers and the Allphones business.
Pressure is increasing on Allphones chairman Tony Mitchell, as the retailer
is already under investigation by the Australian Competition and Consumer
Commission for a range of alleged breaches of agreements with its
franchisees.
Mr Mitchell, whose role in the operations of the company remains unclear, is
a member of the Rudd Government's expert broadband panel.
The Australian understands that industry figures have urged Senator Conroy
to stand him down from the panel
In a written judgment, Justice Steven Rares said Mr Donnellan knew that the
true commission amounts were being concealed from franchisees.
"(Mr Donnellan) would also lack any understanding of contract law if he
seriously thought that Allphones could avoid paying commission to
franchisees ... by relying on (a clause in the contract) as he asserted,"
Justice Rares wrote.
But Mr Donnellan said the action was necessary. "Had Allphones not acted, we
may have jeopardised our whole franchise system with the cancellation of
carrier agreements," Mr Donnellan wrote.
"Allphones has a zero tolerance policy on these matters and felt obliged to
act in the interest of our franchisees and our carriers."
Allphones said it would consider its options.
Mr Donnellan conceded that Allphones had made a mistake by deducting various
fees introduced in mid-2006, including a $150-per-month fee for IT services
to franchisees and a $50-per-month fee for renting an eftpos machine.
A number of the deficiencies in Allphones' administration that were
highlighted by the decision - from as far back as 2002 - have since been
rectified.
The court case was launched by Sydney Allphones franchisee Hoy Mobile.