Davaria Pty Ltd v 7-Eleven Stores Pty Ltd

Davaria Pty Ltd brought a proceeding against 7-Eleven Stores Pty Ltd on behalf of a group of 7-Eleven franchisees, alleging breach of Australian Consumer Law. Davaria sought orders from the Federal Court of Australia requiring 7-Eleven to provide notice of settlement offers to group members and communications concerning compromise or progress of negotiations. Davaria also sought orders requiring 7-Eleven to publish a correction notice due to inaccurate statements made by Davaria’s solicitors in the proceeding. The court considered whether the proposed communication protocol was necessary for the purpose of seeking or attaining justice in the proceedings or appropriate or necessary to ensure that justice is done in the proceedings. The court concluded that neither section 33Z(1)(g) or 33ZF of the Federal Court of Australia Act 1976 (Cth) would allow the Court in the proper exercise of its discretion to prohibit or limit communications between a respondent and an individual group member that are otherwise lawful and not subject to any ethical constraint, and where those communications are not misleading and do not involve any unfairness. The court found that Davaria’s solicitors had made inaccurate public statements concerning the proceeding and ordered Davaria to issue a correction notice to each person and entity to which the inaccurate statements were made and to publish the correction notice on its website.

In summary, the court dismissed Davaria’s application for orders requiring 7-Eleven to provide notice of settlement offers to group members and communications concerning compromise or progress of negotiations. The court did, however, order Davaria to issue a correction notice to each person and entity to which the inaccurate statements were made and to publish the correction notice on its website.