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Tenix pays $15m for Oakton contract snub

Tenix has paid $15 million to settle a dispute with IT services firm Oakton over a terminated contract.
Written by Suzanne Tindal, Contributor

Tenix has paid $15 million to settle a dispute with IT services firm Oakton over a terminated contract.

In February last year, the traffic infringement and management branch of Tenix Solutions terminated a contract that it had with Oakton, filing a claim for $19.36 million in damages.

The contract involved the company designing, building and testing software to be used by Tenix as part of an infringement management and enforcement system for the Victorian Government.

Oakton said, at the time, that it had referred several issues with the contract to arbitration before Tenix went ahead with the termination. It wasn't long before it retaliated, commencing legal action in March against Tenix and seeking $12 million in damages, claiming that Tenix's termination of the contract was wrong.

Tenix responded by raising its $19 million damages claim to $26 million, and requesting a stay of proceedings, pushing for the matter to be put to arbitration.

Oakton didn't want to go to arbitration because of how Tenix broke off the contract, but Justice Croft of the Victorian Supreme Court ruled in April that there be a stay in proceedings for arbitration.

Now, the companies appear to have come to an agreement, with Oakton announcing that it had reached a settlement with Tenix that didn't involve admission of liability by either party. It said that Tenix had paid $15 million today, and that the court proceedings would be discontinued.

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