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TERMICIDE SCORES BIG FEDERAL COURT VICTORY

PUBLIC ANNOUNCEMENT

TERMICIDE SCORES BIG FEDERAL COURT VICTORY

Leading Queensland pest management firm Termicide has won a significant Federal Court legal victory against a bitter rival firm.

The Federal Court has found in Termicide’s favour in a case involving the reliability of the company’s termite barrier product, Termiglass.

A business rival, Granitgard, launched legal action against Termicide, alleging Termicide had breached the Trade Practices Act by claiming in a promotional statement that amongst other things, its Termiglass termite barrier system forms an “impenetrable barrier” to termites, provides a suitable physical barrier against subterranean termite entry and has been tested by the CSIRO and appraised as satisfying the relevant Australian standard.

Termicide Director Paul Jeynes said the two year legal battle had been draining and enormously stressful but Termicide was buoyed by the Federal Court victory.

Federal Court Judge, Justice Logan, in a lengthy judgment, said Granitgard failed to prove that Termiglass, as installed in the Termicide barrier system, did not provide an effective barrier to termites. 

His Honour added Granitgard failed to prove its contention that Termiglass did not deter concealed entry of termites to buildings and was not termite resistant.

Mr Jeynes said he understood Termicide was the first pest management company to have its product integrity claims so comprehensively tested by the Federal Court.

“The Court did not find fault with our product which is made from crushed, recycled glass and has been appraised by the CSIRO. I regard that as a major victory.

”At the heart of the matter was the integrity of products devised to prevent termites from entering buildings via subterranean means, in particular an installation at the time of construction of a termite barrier system.

Justice Logan noted that Termicide’s barriers were made from a crushed glass product known as the brand Termiglass while its rival, Granitgard, used a crushed stone product.

Mr Jeynes said the court’s judgment vindicated Termicide’s belief in its product and its business practices.“We regret that this matter had to go to court but our business rivals chose that path, not us,” he said.

Termicide’s solicitor, Mr Tony Bennett of Bennett and Philp Lawyers, said “the case occupied 21 hearing days over two and half years and involved. a very detailed and searching enquiry into the development and initial testing of Termiglass as a termite barrier as well as a review of the original appraisal issued by the CSIRO and the subsequent revalidation.

“The Judge rejected Granitgard’s claims that the testing had been inadequate and that Termiglass did not comply with the relevant Australian standard.

Despite there being over 27,000 installations of Termiglass, Granitgard could not establish a single case where it was found that Termiglass had failed,” he said.

Mr Bennett described the case as a “David vs Goliath” clash.

Mr Jeynes said he felt violated by his rival’s legal action, but enormously vindicated by the court’s subsequent finding in his favour. He described the judgment as a landmark moment in the history of the company.

“We are a Queensland- based company, operating here since 2000 with a unique product that I invented and employing more than 50 people to service large areas of South East Queensland.

I have more than a decade of experience in the pest management business and this experience was noted by the judge in his decision.

Justice Logan said “Though he is no scientist, I am well satisfied that Mr Paul Jeynes has lengthy practical experience of ways in which to detect, prevent and remedy threats by termites to the built environment in South East Queensland.

”The Judge said Mr Jeynes recognised a need for scientific and engineering expertise when it came to the appraisal of his idea for an alternative barrier system to that of Granitgard.

“On the evidence, he is something of an innovator in relation to developing a range of termite management products, but an innovator who engages appropriately qualified experts as required.” His Honour said.

Mr Jeynes said the Federal Court judgment sent a clear message to those who thought Termicide could be squashed by intimidatory legal manoeuvres.

“The Judge noted that Termicide began supplying and installing our Termiglass barrier system in South East Queensland in 2004. Since then Termicide has grown to become the largest supplier of particle physical barrier systems in South East Queensland.”

“The court found that tests conducted were consistent with and supported our evidence that, after more than 27,000 installations since 2004, termites have never penetrated through a Termiglass barrier,” Mr Jeynes said..

“The Judge said Termicide had what he regarded as a barrier system effective to prevent penetration by subterranean termites if correctly installed and if Termiglass quality is maintained.

“Judge Logan acknowledged we have no control over subsequent works which an owner might undertake which might unwittingly provide a means of entry for termites. We always stress the need for regular, annual property inspections,

” Mr Jeynes said.“To me, the message is clear. As the largest pre-construction pest control company in South East Queensland, we have been vindicated.

“Our Termiglass barrier system product, which is environmentally friendly, has been vigorously examined and found to be effective. It has not failed and meets all the relevant quality requirements, ” Mr Jeynes said.

“We have been innovators in the pest control industry and will continue to be so. Termicide invented much of the current pest control industry techniques. The Federal Court decision is a victory not just for us but also for our customers,” Mr Jeynes said.

To read the Federal Court Judgment in full go to: http://www.austlii.edu.au/au/cases/cth/FCA/2010/313.html