A CALTEX franchisee is suing the petrol giant for unconscionable conduct and breaching the Trade Practices Act,claiming damages of more than $1million.
Socasen Pty Ltd, which operates a service station in Sydney, has launched proceedings against Caltex in the Federal Court.
Socasen has held the Caltex franchise since 2000 and the court case relates to the modification, by Caltex, of its computer system to allow for the Goods and Services Tax.
The computer system is linked to Caltex and Socasen director Paul Simpson claims that for three years, between 2000 and 2003, it did not receive payments for a number of credit card and other transactions for which it paid GST and royalties to Caltex.
The “defective” computer system has led to cash flow problems and Mr Simpson claims he and his family have had to lend Socasen money to boost its working capital.
Further, Socasen claims that Caltex did not make payments, made to help the profitability of some franchisees, as agreed several years ago. The dispute between the parties escalated in May this year when Caltex terminated the franchise agreement, alleging breaches relating to end-of-day “rollovers”, reconciling fuel sales.
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