Apple Australia's legal problems have intensified in regard to the ongoing failed Australian reseller Buzzle litigation reports ARNnet.
The company is now embroiled in a court battle to decide who should pay the legal fees for its attempt to get the liquidator in the Buzzle case removed from his post. Apple had alleged the liquidator to be biased against the company, a claim the New South Wales Supreme Court rejected last month.
Buzzle formed in 2000 and at its height accounted for 40 per cent of Apple's Australian sales. It collapsed in April 2001 with debts of approximately $30 million.
Buzzle's management has accused Apple of channel-stuffing – when manufacturers impose quarterly targets on resellers while forcing them to purchase stock that isn't required. Apple is also accused of supplying defective equipment.
Now the barrister for Buzzle's liquidator Armstrong Wiley has told the court Apple should pay the fees for its attempt to see the liquidator removed, calling it a "gratuitous add-on" to the legal case.
Apple's action was a "high-risk strategy" aiming to delay the administrator's examination, he told the court. The brief also wants Apple to remunerate the liquidator for time spent on the case.
Apple denies that its action against the liquidator was without substance and is resisting payment of both legal fees and remuneration to the liquidator.