Macpherson Kelley telco client SPN Co vindicated in Federal Court following unsubstantiated allegations from competitor, Pennytel Australia
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Macpherson Kelley has successfully defended unfounded allegations brought by Pennytel Australia Pty Limited, against its clients Nicholas Engelke, Samantha Chitas, Peter Horan and their telecommunications business, SPN Co Pty Ltd.
SPN Co is a telco company based in Carrum Downs, Victoria, owned and operated by Macpherson Kelley’s clients Nicholas, Samantha and Peter after two of the founders, Nicholas and Samantha, had previously worked at Pennytel Australia, a larger telco company based in Sydney, NSW.
Pennytel Australia issued proceedings in the Federal Court of Australia NSW Registry, alleging that Nicholas and Samantha had improperly used their positions as Pennytel employees to take confidential information and set up a competing business (SPN) with the third defendant. Pennytel also alleged that 83 of its high-yield customers, who were approaching the end of their contracts with Pennytel, ported their services to SPN as a result of a ‘scheme’ executed by Macpherson Kelley’s clients.
Pennytel sought $1 million in damages, however, Needham J ultimately decided in favour of Macpherson Kelley’s clients on 13 November 2025, dismissing all claims put forward by Pennytel and their legal team.
The result is a significant win for Macpherson Kelley’s clients, who consistently held the position that they had not engaged in any wrongdoing, despite facing significant financial pressure to fund ongoing litigation. Macpherson Kelley Special Counsel Ritsa Balfoort says that the decision vindicates the hardship her clients have endured in defending the unsubstantiated claims put forward by a larger, well-resourced competitor.
“I am so pleased to deliver this result for our clients, who have always emphatically denied the claims made against them by their previous employer,” said Ritsa Balfoort.
“This result should serve as a lesson that there are options available when faced with litigation. Our job is to ensure our bold approach and strategic advice ultimately pays off, so businesses of any size can continue doing what they do best. I am thrilled that this has been the case for SPN,” she said.
Businesses can be put at a disadvantage when threatened by larger competitors with expensive litigation, as the process is both costly and time-consuming. Peter Horan says that he understood the risk, but he had confidence in the legal strategy put forward by Ritsa and team.
“This sort of litigation isn’t for the faint of heart, but we were confident in our position and the detailed preparations made by our legal team, who we’ve developed a close relationship throughout this process,” said Peter.
“The Judge’s determination ultimately demonstrates that our clients work with us because of our personalised approach and the smart, scalable service we provide. That feels extremely validating,” he said.
Leave has been granted to the parties to apply for directions to relist the matter for a hearing on costs. Macpherson Kelley’s Litigation team was led by Special Counsel Ritsa Balfoort, with barrister Rohan Millar briefed to appear.
-Ends-
About Macpherson Kelley
Macpherson Kelley is a Commercial law firm that thinks differently. Our lawyers possess a rare combination of commercial acumen, legal ingenuity, and human insight – treating each client’s business as if it’s our own, and delivering intelligent recommendations they can act on.
As a national law firm, we work across a broad spectrum of practice areas, each offering specialised industry-led expertise and a full suite of legal services. Our lawyers have extensive cross-border expertise, offering our clients practical legal advice, exceptional service, and good thinking on a wide variety of matters.
About SPN
SPN Co is a trusted business telco partner operating out of Carrum Downs, Victoria. SPN Co offers custom-tailored solutions for office connectivity, from mobile phone plans to NBN plans, internet services, voice solutions, and inbound solutions. With a combined industry experience of over 50 years, SPN Co excels in client relationship management, account management, technical proficiency, and IT consultation.
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Macpherson Kelley telco client SPN Co vindicated in Federal Court following unsubstantiated allegations from competitor, Pennytel Australia
Macpherson Kelley has successfully defended unfounded allegations brought by Pennytel Australia Pty Limited, against its clients Nicholas Engelke, Samantha Chitas, Peter Horan and their telecommunications business, SPN Co Pty Ltd.
SPN Co is a telco company based in Carrum Downs, Victoria, owned and operated by Macpherson Kelley’s clients Nicholas, Samantha and Peter after two of the founders, Nicholas and Samantha, had previously worked at Pennytel Australia, a larger telco company based in Sydney, NSW.
Pennytel Australia issued proceedings in the Federal Court of Australia NSW Registry, alleging that Nicholas and Samantha had improperly used their positions as Pennytel employees to take confidential information and set up a competing business (SPN) with the third defendant. Pennytel also alleged that 83 of its high-yield customers, who were approaching the end of their contracts with Pennytel, ported their services to SPN as a result of a ‘scheme’ executed by Macpherson Kelley’s clients.
Pennytel sought $1 million in damages, however, Needham J ultimately decided in favour of Macpherson Kelley’s clients on 13 November 2025, dismissing all claims put forward by Pennytel and their legal team.
The result is a significant win for Macpherson Kelley’s clients, who consistently held the position that they had not engaged in any wrongdoing, despite facing significant financial pressure to fund ongoing litigation. Macpherson Kelley Special Counsel Ritsa Balfoort says that the decision vindicates the hardship her clients have endured in defending the unsubstantiated claims put forward by a larger, well-resourced competitor.
“I am so pleased to deliver this result for our clients, who have always emphatically denied the claims made against them by their previous employer,” said Ritsa Balfoort.
“This result should serve as a lesson that there are options available when faced with litigation. Our job is to ensure our bold approach and strategic advice ultimately pays off, so businesses of any size can continue doing what they do best. I am thrilled that this has been the case for SPN,” she said.
Businesses can be put at a disadvantage when threatened by larger competitors with expensive litigation, as the process is both costly and time-consuming. Peter Horan says that he understood the risk, but he had confidence in the legal strategy put forward by Ritsa and team.
“This sort of litigation isn’t for the faint of heart, but we were confident in our position and the detailed preparations made by our legal team, who we’ve developed a close relationship throughout this process,” said Peter.
“The Judge’s determination ultimately demonstrates that our clients work with us because of our personalised approach and the smart, scalable service we provide. That feels extremely validating,” he said.
Leave has been granted to the parties to apply for directions to relist the matter for a hearing on costs. Macpherson Kelley’s Litigation team was led by Special Counsel Ritsa Balfoort, with barrister Rohan Millar briefed to appear.
-Ends-
About Macpherson Kelley
Macpherson Kelley is a Commercial law firm that thinks differently. Our lawyers possess a rare combination of commercial acumen, legal ingenuity, and human insight – treating each client’s business as if it’s our own, and delivering intelligent recommendations they can act on.
As a national law firm, we work across a broad spectrum of practice areas, each offering specialised industry-led expertise and a full suite of legal services. Our lawyers have extensive cross-border expertise, offering our clients practical legal advice, exceptional service, and good thinking on a wide variety of matters.
About SPN
SPN Co is a trusted business telco partner operating out of Carrum Downs, Victoria. SPN Co offers custom-tailored solutions for office connectivity, from mobile phone plans to NBN plans, internet services, voice solutions, and inbound solutions. With a combined industry experience of over 50 years, SPN Co excels in client relationship management, account management, technical proficiency, and IT consultation.