C A T C H W O R D S
Prade Practices - Covenant by lessor - Interlocutory
Injunction.
Trade Practices Act 1974 ss.45B, 47(4) and 52.
A. D. C. CENTRES PTY: LIMITED V. KILSTREAM
PTY. LIMITED
No. G 35 of 1979
Coram: Franki J.
Sydney
23 July 1979
I N THE FEDERAL COURT OF AUSTRALIA
| N E W | SOUTH | WALES | D I S T R I C T | REGISTRY | No. G 35 of 1979 |
| GENERAL | D I V I S I O N |
| A.D.C. | CENTRES PTY. LIMITET) |
Applicant
AND :'. KILSTREAM PTY. LIMITED
Respondent
| O | R | D | E | R |
SUDGE MAKING ORDER: Franki J.
| DATE O F ORDER | : Monday 23 July 1979 |
| WHERE KADE | : Sydney |
THE COURT ORDERS THAT:
1. Application refused.
2. Liberty to either party to apply on two days notice to the other party to have the matter re-listed for directions or for any other application that either party may be advised to make.
3. Parties to have an opportunity to address on the question of costs.
4 . Matter to be listed for mention on 8 August 1979.
I N TEE FEDERAL COCTT OF AUSTRALIA)
| NEW SOUTH WALES DISTRICT REGISTRY I | No.G 35 of 1979 |
| GENERAL DIVISION | 1 |
I
BETWEEN : A.D.C. CENTRES PTY. LIMITED
Applicant
| AND | : KILSTREAM PTY. LIMITED |
Respondent
Coram: Franki J.
Sydney
23 Ju ly 1979
| REASONS | FOR | JUDGMENT |
| A.D.C. | Centres Pty. Limited, t h e app l ican t , on 5 Ju ly |
1979 commenced an a c t i o n by way of statement of claim aga ins t
-
| Kilstream Pty. | Limited, | t h e respondent, | seeking c e r t a i n |
| dec la ra t ions , | in junct ions | and | o ther r e l i e f | and | claiming t h a t |
t h e respondent had contravened o r attempted t o contravene
| ss.45B, | 46, 47(4) and 52 of t h e Trade P rac t i ce s Act 1974 |
| ( " the ~ c t " ) . On | t h e same day t h e app3.tcant f i l e d a no t ice |
| of | motion | seeking c e r t a i n in te r locu tory r e l i e f | and | I now |
| give judgment | i n t h a t appl ica t ion. |
| I n t h e proceedings | f o r in te r locu tory | r e l i e f , | no |
r e l i ance was placed on s.46 of t h e Act.
The co r r ec t approach which t h i s Court should take t o
| app l ica t ions under | s.80 | of | t h e Act | f o r in te r locu tory r e l i e f |
has been considered i n a number of cases and I mentioned some of them i n McDonaldls System of Aus t ra l i a Pty. Ltd.
| v. I~IcWilliamls Wines Pty. Ltd. (1979) A.T.P.R. | 40-108. |
| This app l ica t ion | r a i s e s | a | number | of | d i f f i c u l t |
quest ions of law but because these proceedings a r e
in te r locu tory and because of t h e complexity of some of
those quest ions, I have deemed it inappropriate t o express
any concluded views.
| I n t h e sub jec t proceedings t he re was | evidence before |
| me | t h a t t h e app l ican t had | leased t o t h e respondent, | by |
| memorandum of | l e a se dated 26 Apri l 1977, a p a r t of | c e r t a i n |
| premises a t a shopping cen t re a t Dee Why | and t h a t ltem 12 |
| of | t h e s a id memorandum | of | l e a s e provided: |
"Permitted Use of Premises: Tennis and squash amusement and r ec rea t i ona l cen t re and
| r e t a i l shop | f o r t h e | s a l e of |
| spor t ing goods, | c lo thes and |
refreshments including
| c i g a r e t t e s , | food, | confectionary." |
| There was | a l s o evidence t h a t c lause 12(h) or^ the s a ld |
| memorandum | of | l e a se contained t h e fo l lov~ing | provision: |
"The Lessor w i l l no t l e a se any
| o ther adjacent premlses | f o r the |
| purposes of | any spo r t s amusements |
| o r rec rea t ion usage | o r f o r t h e |
| r e t a i l s a l e of | spor t ing goods | o r |
associa ted businesses Provided
| t h a t t h e provisions | of | t h i s Clause |
| s h a l l no t | apply | i n r e l a t i o n | t o l e a se s |
| o r tenancizs | ex i s t i ng a t the | da t e of |
| t h i s Lease. |
| There was a l s o evidence t h a t a company, | I | Randall Eadie |
Gartner Spor ts Centre Pty. Ltd. ("Randall") had been desirous
| of | obta in ing a | l e a s e of | a | c e r t a i n p a r t of | t h e app l i can t ' s |
shopping cen t re a t Dee \ a y adjacent t o t h a t occupied by
| t h e respondent | f o r a | l e i s u r e and | spo r t s complex | incorporat ing |
| a | general gymnasium | f l t t e d with c e r t a i n spec i a l equipment, |
| an | exerc ise a r ea , | two | lndoor | c r i c k e t p i t ches and | n e t s , | one |
| sauna, | one | swir lpool , | f l v e o r | s i x b a t b a l l | o r racquetbal l |
cour t s and male and female change rooms.
| There was | a l s o evidence t h a t negot ia t ions had | taken |
place between t h e respondent and Randall p r i o r t o and i n
June 1979 during which it appears t h a t t h e respondent sought
| t o impose c e r t a i n condit ions before it would | consent t o a |
| proposed | l e a s e by | t h e app l ican t t o Randall apparently upon |
| t h e bas i s t h a t i t s consent was necessary because of | the |
| provisions | of | c lause 12(h) of | t h e s a id memorandum of | l e a se . |
| The | app l ican t | res ted | i t s case f o r in te r locu tory |
| r e l l e f upon | an a l leged | contrava? t l o n f i r s t l y oZ | s .47(4) , |
| secondly of s.45B and t h i r d l y of s .52 of t h e Act. | I w i l l |
| consider | f irst t h e quest ion of | t h e app l ica t ion of | s .47(4) . |
| No | r e l i ance was | placed | i n t h e in te r locu tory proceedlngs |
| before me | upon | t h e argument | t h a t , | s lnce t h e app l ics t ion of |
| t h e | d e f i n i t i o n | of | se rv ices | i n s . 4 ( 1 ) i s | sub jec t | t o any |
| contrary | In ten t ion | appearing, | t h a t d e f i n i t i o n does | not |
| apply t o t h e word | "servicest1 i n s .47(4) , | because t h e |
sec t ion shows a contrary intention.
Since I am only requlred t o decide whether a prima
f a c i e case has been established and, i f it has , whether on t h e balance of convenience, o r f o r any o ther reason,
| in te r locu tory r e l i e f | should be refused | I w i l l proceed |
| first upon | the b a s i s , | but without deciding, | t h a t t h e |
| word | "servicesn i n s .47(b) | includes r i g h t s m | r e l a t l o n t o , |
| and | i n t e r e s t s | i n r e a l property. |
| The re levan t words of s.47(4) appear | t o be "A |
| corporation ... | engages | i n t h e p r a c t i c e of | exclusive deal ing |
| i f | t h e | corporat ion | acquires ... | services. . .on | t h e condition |
| t h a t t h e person from whom | t h e corporat ion acquires | se rv ices |
| ... | w i l l no t | supply | se rv lces o r se rv ices of | a | p a r t i c u l a r |
| kind | o r desc r ip t ion t o any person | o r w i l l no t ... | supply |
| s e rv i ce s . . . o r | s e rv i ce s of | a | p a r t i c u l a r kind | o r | description |
| t o p a r t i c u l a r persons | o r | c l a s se s of | persons. . .or | i n |
| p a r t i c u l a r | p laces | o r | c l a s se s | of | p laces ..." |
| So | f a r a s i s re levan t t h i s sec t ion can only apply |
| t o an acqu i s i t i on of a se rv ice by the respondent. | Assuming |
| t h a t t h e d e f i n i t i o n of | "acquire" | i s re levan t | and | t h a t t h e |
word "acquiren is t o be read a s "acceptu because of t h e
| d e f i n i t i o n of | "acquiren i n s .4 (1) | it may | be | t h a t t h e sectiofi |
| app l i e s t o t h e acceptance | of | r i g h t s | t o and | i n t e r e s t s i n r e a l |
| property under t h e terms of an ex i s t j ng l ease . | No | argument |
| was addressed t o me | t h a t I shou1.d | consider t h e pos i t i on |
| when t h e l e a s e was | entered i n t o a t a time before tlie amendmen-L |
| introducing s .47(4) i n i ts present form had been made. | IT |
| it be assumed t h a t s.47(4) may be read a s appl icable t o a |
| l e a s e | one has | t o consider vrhether | t h e r e s t r i c t i o n in c lause |
| 12(h) of | t h e s a id memorandum | of | l e a s e is a condit ion t h a t t h e |
| l e s s o r w i l l no t | supply | se rv ices of | a | p a r t i c u l a r kind | o r |
| description t o any person. | No | d e t a i l e d argument was d i rec ted |
| t o t h e meaning | of | t h e vrords | "of | a p a r t i c u l a r kind o r desc r ip t io |
| but | it i s by | no | means | c l e a r t h a t t h e provis ion of | an i n t e r e s t |
i n r e a l property under a l e a s e containing a covenant
| r e s t r i c t i n g t h e use | t o which | t h e premises | t h e | sub jec t of |
| t h e l e a s e may | be pu t | const i tu-tes t h e provis ion of | nservlces |
| of | a p a r t i c u l a r kind | o r desc r ip t ionu ' | If | such zn i n t e r e s t |
| a r i s i n g under | a | l e a se does not | f a l l wi th in t h e words | Ifservices |
| of | a p a r t i c u l a r kind | o r desc r ip t ionw it | is then necessary |
| t o decide vrhether | t h e add i t ion of | t h e words | llexcept t o a |
| p a r t i c u l a r | extent1! o r | " to | p a r t i c u l a r | persons | o r | c l a s se s | of |
| persons o r t o persons | o ther than p a r t i c u l a r persons | o r |
| c l a s se s | of | personsn o r " in p a r t i c u l a r p laces" | a l t e r s t h a t |
| conclusion. | No | de t a i l ed argument was addressed t o these |
| ques t ions . | I am | by | no | means | s a t i s f i e d t h a t a prima | f a c i e |
case of t h e contravention of s .47(4) by t h e respondent has
| been es tabl ished but assuming,for t h e sake of | argument, t h a t |
| it has , then it is necessary t o consider s.47(10) | and t o |
decide whether t h e respondent by engaging i n t h e conduct a l leged i s engaging i n conduct t h a t Ifhas a purpose o r i s
| l i k e l y t o have | t h e | e f f e c i of | subs t an t i a l l y | lessening |
| ~ o r n p e t i t i o n ~ ~ . | I n examining t h i s quest ion it is necessary |
t o have regard t o t h e provisions of ss.4G and 47(13). Submissions were made t o me by t h e appl icant t h a t t h e
| re levan t market was, | broadly, | e i t h e r t h e merket | of | l e a s ing |
| premises | i n t h e re levan t | a rea | o r a l t e r n a t i v e l y | the | market |
of providing t h e se rv ices which Randall was proposing t o
- 6 -
| provide wi th in t h e re levan t a rea . | It seems t h a t t h e conduct |
| r e f e r r ed t o i n s .47(13)(b) | i s the conduct of | t h e respondent |
| being t h e person vrho | i s a l leged to | be engaging i n t h e re levant |
| conduct o r "eny person whose | business | deal ings a r e r e s t r i c t e d , |
| l imi ted | o r | o ther~v ise | circumscribed" by t h a t conduct. | It i s |
| by no means | c l e a r t o me | t h a t these words include t h e |
| business | deal ings of | t h e app l ican t o r t h a t the business |
| deal ings of | Randall | a r e | " r e s t r i c t e d , | limi-Led o r otherwise |
| c i r c ~ n i s c r i b e d ~ ~ | by t h e conduct of | t h e respondent i n accepting |
| any i n t e r e s t i n the premises. | I emphasise t h a t no argument |
| was | addressed t o me | a s t o t h e pos l t i on a t t h e time t h e |
| l e a s e was | entered i n t o which was | before t h e amendments t o |
| t h e Act | e f f e c t i v e f r o m 1 Ju ly 1977. | For reasons which I |
| w i l l g i v e | l a t e r I f i n d it unnecessary t o express a |
concluded vlew upon whether a prima f a c i e case of contravention
| of | s .47(4) has been established. | J I |
| I | pass | now | t o consider t h e pos i t i on i n r e l a t i o n t o |
| s.45B. | Section 45B(5) provides t h a t s.45B does ~ o t | apply |
| t o o r i n r e l a t l o n t o engaging | i n conduct | i n r e l a t i o n t o a |
covenant by way of conduct t h a t contravenes s .47 and it
was common grouxd before me t h a t i f s.47 applied s.45B did
| not . | I now assume t h a t s .47 does no t apply f o r t h e purposes |
of examining 1.111ether a prima f a c i e case of a contravention
of s.45B has been made out .
| Sect ion 45B(1) | provides, | so f a r a s is re levan t , | t h a t |
a covenant whether given before o r a f t e r 1 July 1977 i s
| unenforceable | i n so | f a r a s it | confers r i g h t s o r bene f i t s |
| o r irnposes | d u t i e s o r ob1.igations | on a corporat ion i f t h e |
| "covenanthas, | o r i s l i k e l y t o have, | t h e | e f f e c t of | subs t an t i a l l y |
lessening competition i n any market i n which the corporation ...
| suppl ies | o r acquires, | o r i s l i k e l y t o supply o r acquire , ... |
| se rv ices o r would, | bu t f o r t h e covenant, | supply o r acquire , |
| o r be l i k e l y t o supply o r acquire , | . . | . | se rv ices . " |
| It | i s t o be noted | t h a t t h e only e f f e c t of | s . 4 5 ~ ( 1 ) | 1s t o |
render a covenant unenforceable ( see s . 4 (3 ) ) which presumably
| means l e g a l l y unenforceable. | There was evidence before me |
| t h a t t h e app l ican t , | on t h e day on which | it commenced |
proceedings i n t h i s Court, commenced proceedings i n
| t h e Supreme Court of New | South Wales seeking a dec la ra t ion |
| t h a t t h e s a id c lause 12(h) of | t h e memorandum | of | l e a se was |
| void | a s contravening t h e doc t r lne of | r e s t r a i n t of | t r ade o r |
| a s contravening t h e Res t r a in t of | Trade Act | - 1976 (N.S.W.) |
| and | seeking c e r t a i n o ther r e l i e f | i n t h a t Court. | The |
respondent has f i l e d a cross clalm i n t h e Supreme Court
| asking t h a t t h e app l ican t be | r e s t r a ined from | granting any |
| l e a s e o f any p a r t of | t h e shopping | cen t re f o r t h e purpose | of |
| any | spo r t s , | amusements | o r rec rea t ion usage | o r f o r t h e r e t a i l |
| s a l e of | spor t ing goods | o r associa ted businesses and | a l s o |
| claiming c e r t a i n o ther r e l i e f . | It was | submitted by | the |
| app l ican t t h a t t h i s cross claim by | t h e respondent meant |
| t h a t it was | i n breach of | s . 4 5 ~ ( 2 ) ( c ) | i n t h a t it was | engaging |
| " in p a r t i c u l a r conduct by | reason t h a t a person who, | but |
| f o r sub-section | (l), | would be bound by a covenant has |
| f a i l e d t o comply, | o r proposes | o r t h r ea t ens t o f a i l t o |
| comply, | with t h e terms of | t h e c o ~ e n a n t . ~ ~ | I f i n d it very |
| d i f f i c u l t t o conclude | t h a t the | conduct | r e f e r r ed t o i n |
| s . b 5 ~ ( 2 ) ( c ) | Includes | the conduct of s e t t i n g up a c ross |
- 8 -
| ac t ion i n proceedings i n a Cowt but f o r reasons which | I |
| w i l l s e t out l a t e r it i s unnecessary f o r me | t o express |
| a concluded oplnlon on t h i s question. | S e c t i ~ n | 45E(I) |
| appears only t o make a ccvenant unenforceable. | No |
| argumei~t was | developed t h a t t h a t sec t ion was | contraveced |
| by an a l l ega t ion t h a t such a covenant was | enforceable. |
I pass r?ow t o consider whe-cher a prima f a c i e case
| has been | es tabl ished | i n r e l a t i o n t o an a l leged contravention |
| of | s .52(1) | of | t h e Act. | So f a r a s is re levan t t h a t sec t ion |
| provides | t h a t : |
| "A | corporat ion | s h a l l no t , | i n t r ade |
| o r commerce, | engage i n conduct t h a t |
i s misleading o r deceptive o r i s
| l i k e l y t o mislead | o r deceive." |
| The app l ican t pointed t o t h e width of | t h e provisions of |
| s.52 | and | submitted | t h a t any a l l e g a t i o n t h a t c lause 12(h) |
| of | -the memorandum | of | l e a se was | enforceable c o ~ s t i t u t e d |
misleading o r deceptive conduct i n t r ade o r commerce.
| Again 1 do no t viish t o express any concluded v i e ~ i | 5 u t 1 |
| have | grave doubt whether | t h e conduc-t r e f e r r ed t o i n s . 5 2 ( l j |
| (and a s defined | i n s . h (2 ) ) | includes representa t ions by a |
| l e s see t o a prospect ive | l e s s e e of | adjacent premises | from |
| the | same | l e s s o r t h a t a | term | i n h i s l e a s e i s enfol.ccable |
| unless | t h a t quss t ion has been | t h e sub jec t of | a | de to rmina t~on |
| by a Court. | Again f o r reasonsvihich I wi1.l s e t out l z t e r |
| it i s ur iecessary f o r me | ta express a concluded v]-ew. |
- 9 -
I have no t thought it necessary -to consider i n any
| d e t a i l whether | t h e conduct a l leged t o be | i n co~iLravention |
| of | s.47(4) | has t h e purpose o r has o r i s l i k e l y t o have the |
| e f f e c t , | of | subs t an t i a l l y | lessening re levan t | competition | or |
| whether | t h e covenant | i n c lause 12(h) has , | o r i s l i k e l y t o |
| have, | t h e | e f f e c t of | subs t an t i a l l y | lessening | re levan t |
| competition wi th in t h e meaning of | S. LI~B(I | ) . |
The conclusion t o which I have u l t imate ly come i s
based upon t h e assumption, but without so deciding, t h a t
| t h e requirement | of | subs t an t i a l l y | lessening re levan t |
competition has been made out so f a r a s i s necessary t o
| e s t a b l i s h a | prima | f a c i e | case. |
| I have now | d e a l t with t h e t h r ee sec t ions of | t h e Act |
| which | a r e a l leged | t o provide | t h e bas i s f o r r e l i e f | i n these |
| proceedings. | I have considerable doubt whe-ther t h e app l ican t |
has es tabl ished a prima f a c i e case under any of those
sec t ions but I w i l l assume t h a t it has f o r t h e purpose of
| considering where t h e balance of convenience l i e s . | Whether |
| o r no t a prima f a c i e case has been es tabl ished I | consider |
| t h a t , | upon | t h e balance | of | convenience, | in te r locu tory r e l i e f |
should be refused.
| The | app l ican t i n i t i a l l y sought orders i n substance |
| r e s t r a i n i n g t h e respondent | i ts servants and | agents , | pendlng |
| f i n a l determination of these proceedings, | from: |
| ( a ) | Enforcing o r seeking t o enforce c lause 12(h) | |||||
| ||||||
| ( b ) | Expressly o r impliediy represent ing t o Randall | |||||
| ||||||
|
The app l ican t d id no t p ress t h e f i r s t order it had sought i n i t s no t i ce of motion and it should be pointed out t h a t it seemed t o be d i rec ted t o asking t h i s Court t o r e s t r a i n
| t h e respondent | i ts servants and agents from taking l e g a l |
| a c t i on t o enforce c lause 12(h) of | t h e memorandum | of | l e a se . |
| I n regard | t o t h e second order | ssught t h e app l ican t indica ted |
| t h a t it d id no t wish | t o prevent t h e respondent from |
| expressing a | view | a s t o t h e v a l i d i t y and | enforceab i l i ty |
| of | c lause l 2 ( h ) but u l t imate ly t h e respondent | sought an |
order i n t h e following terms:
| "An | order | r e s t r a i n i n g | t h e | defendant |
| by | i ts servants o r agents pending |
| f i n a l determination of | these proceedings |
from requiring Randall Eadie Gartner
Sports Centre Pty Limited t o
| a ) obta in t h e defendant 's | consent |
t o a l e a se of premises i n PDee
| Why | S t r o l l 1 from p l a i n t i f f | t o |
Randall Eadie Gartner Sports
Centre Pty Limited
| b) | agree t o t h e terms | s e t out i n t h e |
l e t t e r dated 12 June 1979 from
Alexander and Peddley t o Gye and
Associates, a copy of which i s
| - | annexure | B | t o t h e a f l i d a v l t of |
Gordon Harold Ward sworn on 4
| Ju ly | 1979 and | f i l e d here in ." |
| I n substance, | t h e f i n a l form of | order sought would |
| r e t r a i n t h e defendant, | u n t i l t h e | f i n a l determination | of |
| . the proceedings, | from requ i r ing Randall t o ob t s in the |
defendant ' s consent t o a l e a s e of premises i n the shopping
| cen t r e and | r e s t r a i n i n g t h e | respondent | from | requ i r ing Randall |
| t o agree t o t h e terms s e t out i n t h e l e t t e r of | 12 June 1979. |
| I cannot see ho;i | t h e respondent can requ i re Randall t o |
| obta in i t s consent | t o a | l e a se of | o ther p a r t s of | the shopping |
| centre . | If a l e a s e is granted i n breach of c lause 12(h) |
| and t h a t c lause t u r n s ou t t o be | enforceable and no |
| re levan t breach of | t h e Act | i s involved, | then t h e pos i t i on |
| would | be determined | i n accordance with ordinary p r inc ip l e s . |
| I n add i t ion I | do | no t s ee how | t h e respondent | can requ i re |
| Randall t o agree t o terms | s e t out i n t h e l e t t e r dated |
12 June 1979 which appears t o s e t out t h e terms and
| conditions upon 7;:hich | t h e respondent would not oppose t h e |
| grant ing of | t h e l e a s e then proposed | from | t h e app l ican t t o |
| Randall. |
| I n any event t h e r e i s evidence before me | from M r . |
| Ward, | a d i r e c t o r | of | t h e app l ican t t n a t Randall were |
| un l ike ly t o proceed | with t h e proposed | l ea se but | t he re i s |
| much | more | s p e c l f i c evidence from M r . | Andrews, | the s o l i c i t o r |
| f o r t h e app l ican t , | t h a t "Upon | t h e morning of | Tuesday | 3rd |
Ju ly 1979, M r . Gye of Gye and Associates telephoned me
| saying words | t o t h e e f f e c t | 'My | c l i e n t s Randall Eadie |
Gartner Spor ts Cen-cre Pty. Limited resolved yesterday
| evening no t t o proceed with t h e proposed lease"'. | Gye |
| and Associates | a r e t h e s o l i c i t o r s who | acted f o r Randall |
| i n t h e | negot ia t ions . | |||
|
| give an | ea r ly hear ing da t e f o r t h e f i n a l determination |
of these proceedings and t h a t some time would be ava i lab le
| a s ea r ly a s t h e middle of August 1979. | The respondent |
indica ted t h a t it might need a period of time considerably
longer than t h a t t o prepare any necessary evidence,
- 1 2 -
| p a r t i c u l a r l y | i n r e l a t i o n t o | t h e | i s sue | of | the | a l leged |
| lessening of | competition. | I n f i x i n g a da t e f o r hearing |
it may be necessary t o consider how f a r , i f a t a l l , it
| i s re levan t t o have | regard t o t h e proceedings which t h e |
app l ican t has comenced i n t h e Supreme Court of New
South Wales.
| I n looking a t t h e balance of | convenience it i s |
| re levan t , | a t l e a s t i n r e l a t i o n t o considering | t h e |
| pos i t i on under | s .52, | t o have | p a r t i c u l a r regard | t o any |
poss ib le damage t o llconsumersll i f in te r locu tory r e l i e f
is refused and it would a l so seem re levan t t o pay very
| s u b s t a n t i a l regard | t o | t h e publ ic | l n t e r e s t | i f | in te r locu tory |
| r e l i e f | is refused | i n r e l a t i o n t o any contravention of |
| s.45B | o r s.47(4). |
| I n t h e case before me | t h e r e i s some | evidence t h a t |
| t h e r e would | be | difficulty | i n obta in ing a | s u i t a b l e a r ea |
| i n a | re levan t loca t ion f o r a t l e a s t some | of | t h e activities |
which Randall proposed t o conduct a t t h e shopplng cen t re
but I consider t h e balance of convenience i s i n favour
| of | my | re fus ing any | in junct ion, | i n t e r a l i a , | f o r t h e following |
reasons :
| 1. | That Randall appears t o be no | longer i n t e r e s t ed ; |
2. That it should be poss ib le t o dispose of t h e
| ||||||
| 3. |
| |||||
|
re f ra ined from expressing a concluded view, it
| is by no means | c l e a r t h a t a prima | f a c i e case |
| has been made | out t h a t t h e in junc t ion sought |
| aga ins t t h e respondent | would | r e s t r a m it |
| I1from engaging | i n conduct | t h a t cons t i t u t e s |
| o r would | c o n s t i t u t e a | contravention of | a |
| provis ion of | P a r t I V o r V of | t h e Act" | o r any |
| o ther | re levan t | conductrefer red | t o | i n s .80(1) . |
| 4. | The purpose of | t h e r e l i e f sought appears t o be |
| t o f a c i l i t a t e t h e grant ing by | t h e app l ican t of | a |
| l e a s e of | p a r t of | t h e shopping cen t re t o a |
person o r persons who would conduct a business
which might well be detr imental t o t h e business
| of | t h e r e s p o n d e ~ t . Presumably | any | such | l e a s e |
| would | be f o r a | s i g n i f i c a n t period and | i f | it |
| u l t imate ly were held t h a t no | contravention of |
t h e Trade Prac t ices Act was involved a very
| unsa-t isfactory pos i t i on would | a r i s e which | might |
| be | expected | t o | give | r i s e t o f u r t h e r l i t i g a t i o n . |
| 5 . | I | consider t h a t t h e delay before | t h e matter can |
| be | disposed of | f i n a l l y i s no t such a s i s l i k e l y |
| t o cause | any | s i g n i f i c a n t disadvantage | t o t h e |
| publ ic . |
| I | r e fuse t h e r e l i e f | sought | i n t h i s appl ica t ion. | A s |
I indicated when I reserved my judgment I consider t h a t
| t h e matter | should | be | f i n a l l y disposed of | a t t h e e a r l i e s t |
| poss ib le | date. |
I w i l l g ive t h e p a r t i e s an opportunity t o address
| me | on t h e quest ion of cos t s . | Leave i s a l so granted t o |
| e i t h e r p a r t y t o apply on | two | days no t ice | t o t h e o ther |
| pa r ty t o have | t h i s matter | r e - l i s t ed | f o r directions | o r f o r |
| any | o ther app l ica t ion | t h a t | e i t h e r p a r t y may | be | advised |
t o make.
I
| t | - | 7 | , | t i l ls :t::d. | the t\\\-+er, |
| - | ?::'L | ages ""c a true copy or' the |
| - |
| X ~ ~ s o l ~ s | for Judgment hereln of hls l!onour |
| 3-r . | J u s t ~ c e | F R A N W |
| &----Q- | Q!-L |
+r Assoclate
- AGLC
- ADC Centres Pty Ltd v Kilstream Pty Ltd [1979] FCA 71
- Case
- [1979] FCA 71
- Decision Date
CaseChat Overview and Summary
The court found that it was not clear whether the restrictive covenant constituted a contravention of the Act, but even if it did, the balance of convenience favoured denying interlocutory relief. The court reasoned that Randall Eadie Gartner Sports Centre Pty Ltd, the intended lessee, had decided not to proceed with the lease, and there was no significant harm to the public if relief was denied. The court also noted that the matter should be finally disposed of as soon as possible.
Accordingly, the court refused the relief sought and granted leave to either party to apply to relist the matter for directions or any other application. The parties were also given an opportunity to address the court on the question of costs.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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