Chariot faces $3.2m law suit

Stuart Corner
Wednesday, 05 July 2006 18:23

IT Industry - Strategy

ASX listed ISP, Chariot Limited is facing a claim of $3.2 million for alleged breach of contract from Transcom Australasia Pty Ltd and Transcom International Limited, companies with which it intended to partner to launch VoIP services.
Two of its directors, Peter Buttery and Robert Horlin-Smith are also facing claims for pecuniary damages.

According to Chariot, "The claims by the Transcom Companies arise from agreements between them and Chariot and the termination of a wholesale distribution agreement under which certain products and services were expected to be made available to the Australian telecommunications market."

Chariot says it will vigorously defend the claims, filed in the Queensland Supreme Court, and is seeking advice as to any causes of action (including counter-claims) that may be available to it."

In November 2004 Chariot announced plans to launch a VoIP service early in 2005 in partnership with US and UK based softswitch manufacturer, Transcom, in which it had taken equity. However there were significant delays and the company announced in November 2005 that it would launch the service by year end. It had still not been launched at the end of February.