Alpha Centauri Enterprises Pty Ltd v Mortgage House of Australia Pty Ltd

Alpha Centauri Enterprises Pty Ltd sued Mortgage House of Australia Pty Ltd over alleged breaches of agreements, including failure to pay a higher commission rate and provide telephone diversion leads, and for engaging in deceptive conduct under the Trade Practices Act 1974. Mortgage House of Australia cross-claimed that Alpha Centauri had breached their agreement. The Federal Court was required to determine whether the agreements should be rectified to include the higher commission rate and telephone diversion leads, whether Mortgage House of Australia breached the agreements, and whether they engaged in misleading or deceptive conduct under the Trade Practices Act. The court also needed to assess if Alpha Centauri had suffered any damages and if the agreements were 'franchise agreements' under the Franchising Code of Conduct.

The court found that there was no intention to include the higher commission rate and telephone diversion leads in the agreements. It held that Mortgage House of Australia's interpretation of the agreements was to be preferred as it gave the terms a reasonable and sensible meaning. The court also found that Alpha Centauri had breached an express term of the agreement, but Mortgage House of Australia did not establish that any loss flowed from that breach. Regarding the Trade Practices Act, the court held that Mortgage House of Australia had engaged in misleading or deceptive conduct but Alpha Centauri had not proved any damage flowing from this conduct. The court found that the agreements were not 'franchise agreements' under the Franchising Code of Conduct.

Mortgage House of Australia's cross-claim was dismissed with costs. Alpha Centauri's claims were dismissed, and Mortgage House of Australia was ordered to pay Alpha Centauri's costs on an indemnity basis. The court also found that Mortgage House of Australia had engaged in unconscionable conduct by failing to comply with disclosure requirements under the Franchising Code of Conduct but did not award any damages as Alpha Centauri had not proved any loss.