Mobile dealer takes Vodafone to court claiming $3 million in loss after collapsing into liquidation

BD Mobile, which was formerly one of Vodafone’s biggest mobile dealers, is now embroiled in litigation against the telco following its liquidation.

Besyl, which traded as BD Mobile, has launched a $3 million claim against Vodafone in the NSW Supreme Court for outstanding commission payments and loss of business and customers.

The claim follows the appointment of Jamieson Louttit Insolvency & Advisory as liquidator of BD Mobile.

Jamieson Louttit told SmartCompany that BD Mobile was one of Vodafone’s exclusive dealers and is suing Vodafone for unpaid commissions.

The amounts are monthly commissions paid to BD Mobile based on bills paid by customers.

“They owe me money, and the records from what I can see from an accounting perspective are very poor, they are atrocious,” he says.

“It appears that Vodafone relies on the dealers to calculate the commissions owed to it as its own internal systems don’t allow it to do the calculations.”

Louttit says he estimates at least $162,000 is owed but BD Mobile is claiming $3 million in the NSW Supreme Court on the basis of the outstanding commission along with loss of business and customers.

BD Mobile is claiming that problems with Vodafone’s network caused it to lose customers and for the business to fail.

A letter of demand has been issued to Vodafone and Louttit says the case is set down for mediation in two weeks’ time.

BD Mobile’s principal creditor is the Australian Tax Office, which is owed about $67,000 and Louttit says it is the ATO which wound the company up.

He says a lot of smaller creditors and employees are also owed money.

The court case is the latest blow to Vodafone after it announced earlier this week that 500 staff would lose their jobs, 10% of the telco’s Australian workforce.

Greg Spear, spokesperson for Vodafone, says Vodafone has responded to a letter of demand from Besyl stating that Vodafone does not owe BD Mobile any outstanding commissions.

“As the liquidator is aware, proceedings have been stayed until any further court order,” Spear says.