Patrick launches new Federal Court challenge to Toll

<p>Patrick Corp yesterday (Monday, April 3) moved formally to a Federal Court challenge over Toll Holding’s Pacific National undertakings to the Australian Competition and Consumer Commission. </p> <p>Patrick is challenging under the Administrative Decisions Judicial Review Act, and will argue that Toll’s promises to divest Pacific National assets cannot be legally delivered without breaking existing contracts &#8211 effectively blocking the bid again. </p> <p>The case is due to be heard on Wednesday next week (April 12), well inside Toll’s deadline for acceptance of its offer on April 28. </p> <p>"The court will be deciding a question fundamental to Toll’s bid," Patrick said last Friday (March 31). </p> <p>The latest action follows the intervention of the ACCC in the case last Friday, seeking to have the matter moved from the Supreme Court of Victoria to the jurisdiction of the Federal Court. </p> <p>The ACCC will be defending its ability to enforce its undertakings. </p> <p>Legal figures have already said that the case, which involves the Corporations Act and directors duties, could set a substantial precedent and could go all the way to the High Court.</p> <p>However, sources close to Toll dismissed the latest Patrick case as "more of the same.Patrick are trying their luck with the same set of facts in another court". </p> <p>Patrick failed on Friday to get its other case &#8211 that Pacific National should be broken up on grounds of its dysfunctionality &#8211 heard before the Toll offer closes on April 28. </p> <p>The Supreme Court of Victoria said that Pacific National was functioning satisfactorily on a day-to-day basis, that the outcome of the bid could dispose of the litigation, and that there was no special urgency in the Patrick case. </p> <br />