Judgment ends legal dispute between Wagners, Boral
THE CEO of Wagners says he is “not dissatisfied” with the outcomes of the business’ long-running legal dispute with competitor Boral.
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THE CEO of Toowoomba construction materials company Wagners says he is "not dissatisfied" with the outcomes of the business' long-running legal dispute with competitor Boral.
The Supreme Court handed down its judgment on the complex pricing dispute on Thursday, bringing to an end a saga that stretched back more than a year.
The matter started in March 2019 after Boral sent a pricing notice to Wagners, saying it could buy cement from rival company Cement Australia at a cheaper rate.
Wagners argued the notice was invalid and suspended its "take or pay" cement supply agreement it had with Boral for six months, at a cost of about $20m to the company.
This week, Justice John Bond ruled the March pricing notice and a subsequent one in April were both invalid, but agreed that a third sent by Boral in October was indeed "valid and effective".
Wagners CEO Cameron Coleman said the ruling, which meant the company would make less money on supplying cement to Boral, was the end to a "necessary" legal proceeding.
He said the result offered clarity to the company, adding that Wagners would remain contracted to Boral until 2031.
"We're not dissatisfied by the judgment, we don't see it as a loss," Mr Coleman told The Chronicle.
"The long-term cement contract remains until 2031, that's been tested, the contract remains in place and Boral are honouring their commitment.
"It's been a long and necessary process to get a clear determination on a number of clauses in our contract.
"For us, it's good to be able to say to the market that it's been tested, we've got clarity on the clauses and we're happy to have a long-term supply agreement with Boral."
Boral restarted buying cement from Wagners in October after the suspension finished, but at lower prices than what they had previously been.
The court has yet to make a determination on costs, which will come at a later date.
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