Valentia Technologies pleased with High Court costs decision

Valentia Technologies, a fast-growing provider of cloud-based software for medical practices, has been awarded more than $100,000 in costs arising from a legal dispute with a dominant competitor.

In December 2023, Medtech Limited sought from the High Court and was granted – on a “without notice” basis – a preservation order requiring Valentia to preserve a significant amount of IT code and other information.

Valentia vigorously challenged the need for the order and, following further legal proceedings, the High Court in June discharged the order. The Court has now ordered Medtech to pay Valentia $116,048 towards legal costs incurred defending the action to date.

“We have said from the start these proceedings were a clear attempt to slow our momentum in response to our substantial growth and the challenge we present to Medtech’s traditional market dominance,” said Dr Ahmad Javad, Managing Director of Valentia Technologies (NZ) Limited.

“We are pleased with the High Court’s decision to award substantial costs to Valentia, although given three previous judgments the Court has issued since these proceedings began have all gone in our favour, the costs ruling was not a surprise.”

Valentia and Medtech both sell Practice Management Systems (PMS) used to manage patient records, appointment scheduling, and other processes. The systems are at the heart of the safe and efficient running of health practices. Medtech has 70% of the New Zealand PMS market and Valentia, a newer arrival, has 17%.

In February, the Court dismissed an application by Medtech for “interim interim” relief. In June it discharged the preservation order, and in July it dismissed an application for an injunction brought by Medtech.

“We believe the initial preservation order should not, and would not, have been granted if Medtech had ensured all facts were presented to the Court initially, which we maintain was not the case,” Dr Javad said.

In the Court’s July decision dismissing Medtech’s injunction application, Justice Jane Anderson noted she was “concerned at the effect on medical practices and on the public” if such an injunction was granted.

“Medtech claimed the injunctive relief was necessary to stop the extraction of practice and patient data from their software without Medtech’s assistance or approval. However, the authority to grant such approval properly resides with the respective practices and patients, and not Medtech,” Dr Javad said.

“Our top priority is to empower healthcare providers to deliver the highest quality care, focusing on their operational needs beyond simple profit or market share considerations.

“To support New Zealand healthcare providers facing unique challenges, we continue to invest heavily in new infrastructure and expand our team to meet our rapid growth.

“Our growth is driven by our modern, browser-based solution with innovative features and advanced technology, and our commitment to quality and responsiveness.

“We will not be deterred from our commitment to supporting the healthcare sector with advanced solutions, nor from continuing to expand our market share and introduce new technologies, including exciting new AI functionality, that meet the evolving needs of healthcare providers,” Dr Javad said.