ADC Centres Pty Ltd v Kilstream Pty Ltd

Case [1979] FCA 71


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)

of

t h e memorandum of l e a se and

( b )

Expressly o r impliediy represent ing t o Randall

o r any

o ther

t h l r d pa r ty

t h a t

c lause

12(h) i s

v a l i d and

enforceable.

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 .

I

indicated

t o t h e p a r t i e s t h a t t h e Court

could

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

ac t i on i n t h e

reasonably near

fu tu re ;

3.

That

t h e p a r t i e s vo lun t a r i l y

entered

l n t o

a

l e a se i n Apr i l 1977 and

t h a t ,

although I have

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

Details
AGLC
ADC Centres Pty Ltd v Kilstream Pty Ltd [1979] FCA 71
Case
[1979] FCA 71
Decision Date

CaseChat Overview and Summary

ADC Centres Pty Ltd sought an interlocutory injunction against Kilstream Pty Ltd, alleging that the latter had contravened sections 45B, 46, 47(4) and 52 of the Trade Practices Act 1974. ADC Centres argued that the respondent had entered into a restrictive covenant with them that limited their ability to lease other premises for sporting goods and services, which in turn restricted competition. The court considered whether ADC Centres had established a prima facie case of contravention of the Trade Practices Act and whether interlocutory relief should be granted.

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

Full text does not contain this section.

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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