Backyard Concepts Corporation Pty Ltd v Jim's Group Pty Ltd

Backyard Concepts Corporation Pty Ltd sought summary judgment against Jim's Group Pty Ltd, which had been the national franchisor of a franchised business. The plaintiff had purchased businesses from third parties, who were Australian and New Zealand divisional franchisors and a regional franchise of the franchised business. The third parties had surrendered their franchises to allow the defendant to grant franchise agreements to the plaintiff. The plaintiff alleged that the defendant was liable for breaches by the third parties of the Franchising Code of Conduct in relation to the sale of the franchises to the plaintiff. The plaintiff's claims against the defendant were based on alleged representations and warranties given by the defendant to the plaintiff and breaches of the franchise agreements. The plaintiff relied on two issues only to pursue summary judgment. However, there were deficiencies in the statement of claim that required amendment. The court held that if the facts relating to the issues relied on by the plaintiff on the application were proved, the causation of the alleged damages flowing from those issues was in dispute and the issues should be tried. The application for summary judgment was dismissed.