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The findings of the Referee appointed by the Supreme Court of New South Wales have been handed down in the court proceedings between Fuji Xerox Australia (FXA) and Seven Sydney, with the Court finding in favour of FXA. Seven Sydney as Plaintiff commenced its action in October 2001 after refusing to make payments owing in respect of the supply and support of a DocuColor 70 and a DocuColor 100. FXA cross-claimed in respect of damages suffered as a consequence of Seven’s refusal to pay the equipment lease and refusal to pay other accounts outstanding, an amount in excess of $1m.At the centre of the dispute are allegations by Seven Sydney that the products concerned were not suitable for the purpose for which they were supplied, that they were not of merchantable quality and that the support provided in respect of the equipment was inadequate. According to FXA, each of these accusations went to the heart of its commitment to Customer Satisfaction as its principal business value, and accordingly went to great lengths to clear its name.
The referee was asked by the Plaintiff to make determinations on sixty-one issues. The Referee confirmed nineteen neutral issues of fact and found in favour of the Defendant in respect of the forty-two allegations on which the Plaintiffs summons was based. While these findings have yet to be formally adopted by the court they totally exonerate FXA.
According to Roger Morgan, FXA Xerographic Systems general manager, this case struck at the very core of the company’s commitment to customer satisfaction through quality products, quality processes and dedicated staff.
"It also threatened our position as a quality supplier to the Graphic Arts industry, a position that we have built up over the years and value very greatly," says Morgan. He says this case has consumed a huge amount of internal resources over the past three years, a situation that led FXA to offer to settle the dispute a number of times during the proceedings.
Phil Chambers, FXA managing director, says, "The proceedings have been a drain on our valued people resources, but the matters at stake were important to us. We have used this critical review of our people and processes during this time to critique and effect improvements of procedures right across our business."
