CGM Investments Pty Ltd v Chelliah (No 3)

CGM Investments Pty Ltd sought an order for specific performance of a franchise agreement and damages for breach of contract against Chelliah and others. The respondents denied liability, claiming the franchise agreement had expired and was unenforceable due to the Franchising Code of Conduct. The case came before the Federal Court of Australia, which needed to determine the enforceability of the franchise agreement and the respondents' liability for breach.

The court examined whether the franchise agreement was enforceable and if there was a breach. The respondents argued the agreement was no longer valid due to the Franchising Code of Conduct. The court found that the agreement was enforceable and that there was a breach of contract by the respondents. The court held that the respondents were liable for the breach and ordered specific performance and damages.

The court ordered the third, fourth and fifth respondents to pay 80% of the applicants' costs. The applicants were ordered to pay the third, fourth and fifth respondents' costs thrown away after 26 September 2002 due to the abandonment of the estoppel allegation. The applicants and the first and second respondents were ordered to bear their own costs in relation to the applicants' claim against these respondents and the cross-claim brought by these respondents against the applicants.