Kalgoorlie-based training company All Mine & Construction Training has launched legal action over an alleged contract breach it claims derailed its $1.2 million sale.
Kalgoorlie-based training company All Mine & Construction Training has launched legal action against a West Perth engineering firm over an alleged contract breach it claims derailed its $1.2 million sale.
According to a writ filed in the Supreme Court earlier this week, All Mine & Construction is seeking damages from CPC Engineering for both breaches to an agreement and damages arising from the loss of sale of the business.
The two parties entered into a partnership agreement in early 2015 which stipulated that CPC Engineering would provide in-house training opportunities for employees at a cost of between $60 and $105 per staff member for the purpose of obtaining qualifications and areas of competency, including WorkSafe accreditations and heavy vehicle licensing.
Under the agreement, All Mine & Construction Training would review the training and assessment undertaken and, when it was found to be sufficient, issue a statement of attainment.
But between June 2018 and July 2019, All Mine & Construction claims CPC Engineering breached the agreement by delivering training courses outside the qualifications of the trainer and using a certification outside the company's accreditation scope.
All Mine also alleged that CPC Engineering advertised the training to the general public and offered training for at least 14 Esperance-based staff without seeking All Mine’s authorisation.
The company further alleged that CPC Engineering provided certificates of completion using All Mine & Construction’s logo and the logo of the state's Training Accreditation Council without its permission.
In July 2020, Esperance-based employment agency Got ‘Em Group agreed to pay the sum of $1.2 million to acquire All Mine & Construction.
In September 2020, All Mine & Construction advised the state’s Training Accreditation Council of the existence of the unauthorised certificates and was directed to place a warning on its website for existing and potential clients about the unauthorised certificates in circulation.
At around the same time, All Mine & Construction terminated its partnership agreement with CPC Engineering, but alleges CPC did not rectify the breaches of the agreement.
The settlement for the sale of the company was scheduled for May 1, 2021, but in November 2020, Got ‘Em Group allegedly informed All Mine & Construction that the purchase of the business would not proceed due to the adverse publicity caused by the unauthorised certificates.
All Mine & Construction is claiming compensation for the breaches and the loss of sale of the business, as well as interest and court costs.