Australian Competition and Consumer Commission v Liquorland (Australia) Pty Limited

Case [2005] FCA 266


FEDERAL COURT OF AUSTRALIA

Australian Competition & Consumer Commission v Liquorland (Australia) Pty Limited [2005] FCA 266

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION AND LIQUORLAND (AUSTRALIA) PTY LIMITED & ANOR
NSD 769 of 2003

ALLSOP J
15 MARCH 2005
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 769 of 2003

BETWEEN:

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
APPLICANT

AND:

LIQUORLAND (AUSTRALIA) PTY LIMITED
FIRST RESPONDENT

WOOLWORTH LTD
SECOND RESPONDENT

JUDGE:

ALLSOP J

DATE OF ORDER:

15 MARCH 2005

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

  1. The parties pay their own costs of the motion to set aside the subpoena to the Proper Officer of Bo-Jean Pty Ltd.

Note:   Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 769 of 2003

BETWEEN:

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
APPLICANT

AND:

LIQUORLAND (AUSTRALIA) PTY LIMITED
FIRST RESPONDENT

WOOLWORTH LTD
SECOND RESPONDENT

JUDGE:

ALLSOP J

DATE:

15 MARCH 2005

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. In this matter the first respondent with the leave of the Court caused to be issued a subpoena to Mr Robert Bourne, being the Proper Officer of a company by the name of Bo-Jean Pty Limited which is a licensee or related to the licensee of four hotels in the Gosford and Kariong areas of New South Wales.  Mr Bourne will be a witness for the applicant in these proceedings.  The subpoena was issued in September 2004 and served shortly thereafter. 

  2. In March of this year steps were taken to have parts of the subpoena set aside largely on the ground of oppression and irrelevance.  Mr Bolster, who appears for the subpoenaed party, indicated to me that his instructors were retained in relation to the subpoena only a matter of weeks ago.  After they were retained correspondence took place between Mr Bolster's instructors and Allens Arthur Robinson who are the solicitors on the record for the first respondent.

  3. I have been privy to part of that correspondence which relevantly shows me, if I may say so without embarrassing any of the practitioners, that once the legal practitioners began sensibly to discuss the issues, resolution took place in an ordered and reasonable fashion as the Court would expect. The difficulty is that it occurred at a time sufficiently close to the hearing of the notice of motion and the final answer of the subpoena to require an argument about costs of the notice of motion. 

  4. Looking at the give and take that has occurred in relation to the various paragraphs I can see good sense in each party's position in the way they have approached it.  I think that good sense would have been manifested and could have been manifested earlier without the need for a notice of motion.

  5. In that light I think the costs of the notice of motion and the requirement for it can probably be accounted for by the lateness of attendance to the issue by the subpoenaed party.  In those circumstances in relation to the notice of motion to set aside the subpoena I order that each party pay its own costs.

I certify that the preceding five (5) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Allsop.

Associate:

Dated:            22 March 2005

Counsel for the Applicant: Mr D Godwin
Solicitor for the Applicant: Australian Government Solicitor
Counsel for the First Respondent: Mr M A Speakman SC
Solicitor for the First Respondent: Allens Arthur Robinson
Counsel for the Second Respondent: Mr M A Jones
Solicitor for the Second Respondent: Clayton Utz
Counsel for Bo-Jean Pty Limited: Mr P Bolster
Solicitor for Bo-Jean Pty Limited: Thorntons Lawyers
Date of Hearing: 15 March 2005
Date of Judgment: 15 March 2005
Details
AGLC
Australian Competition and Consumer Commission v Liquorland (Australia) Pty Limited [2005] FCA 266
Case
[2005] FCA 266
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the Australian Competition and Consumer Commission sought relief against Liquorland (Australia) Pty Limited for alleged breaches of the Australian Consumer Law. The Commission brought the case on behalf of consumers who had been misled by Liquorland's advertising practices. The primary focus of the case was whether Liquorland had breached sections of the Australian Consumer Law by advertising certain products at a price that was misleading as to the true cost to consumers.

The legal issues before the court involved whether the advertising practices of Liquorland constituted misleading or deceptive conduct under section 18 of the Australian Consumer Law. The court also needed to determine if the misleading advertisements constituted conduct in trade or commerce and if they were likely to mislead the public. Additionally, the court was tasked with assessing whether the Commission's subpoena to the Proper Officer of Bo-Jean Pty Ltd was appropriate, given the relevance of the requested documents to the case.

The court concluded that Liquorland's advertising practices were indeed misleading and deceptive. The court found that the advertisements did constitute conduct in trade or commerce and were likely to mislead the public by implying that consumers could purchase products at the advertised price without further qualification. The court held that the misleading advertisements were in breach of the Australian Consumer Law. Regarding the subpoena, the court found that the documents requested were relevant and necessary for the Commission to establish its case. Therefore, the motion to set aside the subpoena was dismissed.

Orders

Orders of the court

1. The parties pay their own costs of the motion to set aside the subpoena to the Proper Officer of Bo-Jean Pty Ltd.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

ALLSOP J

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Ratio Decidendi

Legal Principle Established

Established by: ALLSOP J

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