A BRIEF OF THE CONTRIBUTING
FACTORS LEADING TO
THE LEGAL CLAIM AGAINST
KAWANA GEORGE AND
KRG ELECTRICS PTY LTD
#kawanageorge #krgelectrics
THINGS YOU NEED TO KNOW
ABOUT KAWANA GEORGE AND
KRG ELECTRICS PTY LTD
A BRIEF OF THE CONTRIBUTING
FACTORS LEADING TO
THE LEGAL CLAIM AGAINST
KAWANA GEORGE AND
KRG ELECTRICS PTY LTD
#kawanageorge #krgelectrics
Kawana George began operating his franchise in 2008 and
incorporated KRG Electrics Pty Ltd as the franchise holder.
At that time the company’s primary services included test and tag, emergency point testing, microwave testing, RCD testing and thermal imaging and some electrical repair work.
Kawana George's primary tasks involved servicing existing clients which had been generated by the company and offered to Kawana George.
Kawana George was encouraged to market for new business and generate clients personally.
Kawana George had no industry experience, he knew nothing of the test and tag business, he knew nothing of marketing to clients to sell the services, he knew nothing of developing relationships in the associated B2B industry and knew nothing of franchising upon entering the franchise.
HE WAS A JUNIOR IN THE INDUSTRY.
Kawana George was trained by the company's team members in each aspect of his role and he was provided unfettered access to all such relevant files, data and supporting information as was the case for all franchise operators.
Clients ranged from smaller operators to large organisations and organisations that were well established in the public domain.
The company had developed goodwill of a substantial value in respect of its clients and its business.
The company allocated the goodwill of a number of signifcant clients to the benefit of Kawana George.
The company through its normal processes generated an
increased volume of work for Kawana George and his order books were filling.
With an increasing client base provided by the company and strong business growth, Kawana George focussed on client service and nurturing client relationships. He did not focus on generating new business.
Throughout the while, Kawana George was trained in client management and with the knowledge and technique provided Kawana George was perfectly skilled to develop and nurture client relationships.
Within his first cycle and whilst continuing to service company clients directly, Kawana George developed a process to deceive long established of the company clients.
Kawana George presented himself to clients as the applicant’s
representative when in reality he worked privately and outside of the franchise.
He contacted the client directly ahead of their next test cycle, then serviced sites masquerading as a company representative. He wore the company uniform and ID badge. Upon completion of site service Kawana George provided the unsuspecting client with company style reporting and invoicing inserting his private bank details for payment.
Whilst contracted to this franchise group and for some time after Kawana George converted company clients to his own.
HE MAINTAINED CONTACT WITH THE CLIENT
PAYABLE OFFICE AND FOLLOWED UP
FOR PAYMENT.
To avert suspicion Kawana George reported to the company's office that the site no longer required the servicing as they ceased with servicing completely or were conducting inhouse testing or similar.
In so doing Kawana George deceived both the client and his franchise group, all the while presenting himself as a diligent and loyal member of the franchise team.
Company information was readily available to Kawana George whilst operating as a technician. He accessed the company database which contained recorded details of clients and their contracts ("Client Data").
Client Data available from the applicant's database included details such as decision makers, contract details, site numbers, site addresses, phone numbers, emails, quantities of equipment, charge rates and most importantly dates when sites fall due for their servicing.
A range of specific client information was successfully used to convert the applicant's existing client. Many client payments were presented to court.
The true extent of the number of converted clients is unknown.
Whilst a franchisee with the company, Kawana George collected and recorded the applicant's secrets. He copied various procedures and forms and records that took years to develop and refine ("The System"). The extent of Kawana George's collection of the company's secrets is unknown.
Knowledge of the company's Client Data and The System allowed quotes and proposals to be sent to clients just as their next service was due. How very convenient, particularly when the quote was prepared with the knowledge of company pricing.
Using the company's Client Data and The System, Kawana George possessed qualified clients, the knowhow and the service standards required to convert clients and to maintain clients. Kawana George had at hand, 'a ready made-business', a turn-key operation.
Whilst with the company and for some years afterwards Kawana George used the Client Data and The System to grow and develop his personal business.
During this time a lawful and enforceable injunction restraining Kawana George was ordered by the Supreme Court. Yet Kawana George behaved with contempt and continued to trade in a manner where his conduct was deliberate and wilful. The breaches were not isolated but repeated and sustained (File No/s: SCCIV-13-281, point 19).
The court case exposed Kawana George, his behaviour, his conduct and his strategy.
Kawana George through KRG engaged in misleading conduct in contravention of section 52 of the Trade Practices Act 1974 (Cth).
Mr George was knowingly concerned in the contraventions. (File No/s: SCCIV-11-1811, point 144).
A term of imprisonment of one month in default of payment of the fine by Kawana George was ordered (File No/s: SCCIV-13-281, point 28)
Judgements were enterred in June 2013 and August 2014.
The company won in the 2 areas of judgement, liability and damages.