Arthur Heedes Liberty Free Range Chicken v Inghams Enterprises Pty Ltd

Arthur Heedes Liberty Free Range Chicken Pty Ltd (the applicant) sought an interlocutory injunction against Inghams Enterprises Pty Ltd (the respondent) to restrain alleged breaches of a franchise agreement. The applicant alleged that the respondent had breached the agreement by failing to supply chickens of the required quality and by failing to provide adequate marketing support. The matter came before Jock McDonagh J in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the applicant had established a strong enough case to warrant the grant of an interlocutory injunction. This involved assessing whether the applicant had demonstrated a serious question to be tried regarding the alleged breaches of the franchise agreement and whether the balance of convenience favoured the grant of an injunction to preserve the status quo pending a final determination of the dispute.

His Honour considered the evidence presented by both parties regarding the quality of chickens supplied and the marketing activities undertaken. The Court applied the principles governing the grant of interlocutory injunctions, which require the applicant to show a likelihood of success on the merits or, in the alternative, a serious question to be tried, and that damages would not be an adequate remedy. The Court also weighed the potential harm to each party if the injunction were granted or refused.

The application for an interlocutory injunction was dismissed.