The court battle between IT services companies Oakton (ASX:OKN) and Tenix may be heard in the Supreme Court of Victoria, after Oakton opposed a plot to move the dispute into arbitration.
During a hearing at the court on Friday, Oakton argued that the claims should not be referred to arbitration, because Tenix breached a contract between the parties by wrongfully terminating it.
By breaking the terms of the contract, Tenix has foregone its right to insist on compliance with the dispute resolution terms spelled out therein, Oakton said.
Tenix is suing Oakton for what is now $26 million in damages. Oakton has denied any liability in the case.