A local gas supplier has been ordered to pay €146,335 by way of damages to a competitor in the liquid petroleum market after a court held that it had “illegally and fraudulently” sought to pass off the other supplier’s cylinders as its own.

Liquigas Malta Ltd had instituted a civil action for damages in April 2015 against Easygas Malta Ltd, claiming that the respondents had overpainted thousands of green cylinders, distinctive of Liquigas, in the distinctive dark grey colour of Easygas.

In the course of the proceedings, the First Hall, Civil Court heard how Easygas had been withdrawing from the market cylinders belonging to its competitor, overpainting them in grey, re-filling them and selling them on the market.

Liquigas argued that this abusive practice made it difficult for the company to certify the condition of the cylinders and to maintain a chain of responsibility in case of any accident involving gas cylinders.

Easygas had pleaded that Liquigas was not the owner of the cylinders since legislative amendments in 2011 had altered the definition of ownership.

However, the Court, presided over by Mr Justice Mark Chetcuti, concluded that the respondent company had put forward no evidence to rebut the claim that the applicant’s cylinders were being overpainted.

This abusive practice, whereby Easygas sought to convert Liquigas’s cylinders into its own, was in clear breach of property rights and obligations laid down by laws regulating the liquid petroleum sector, the Court declared.

When calculating damages, the Court deemed the estimate provided by Liquigas Chief Financial Officer as “reasonable”, thereby fixing the compensation at €146,335 in respect of some 9441 overpainted cylinders as at February 20, 2019.

The Court ordered Easygas to pay this sum together with interest and costs.