Devenish & Ors v Jewel Food Stores Pty Limited

The applicants, Michael Gerard Devenish and others, sought special leave to appeal to the High Court of Australia against a decision of the Federal Court. The dispute concerned the proper construction of section 45B of the *Trade Practices Act* (now the *Competition and Consumer Act 2010* (Cth)) and whether the conduct of the applicants, milk vendors, amounted to hindering or preventing the supply of New South Wales pasteurised milk to the respondent, Jewel Food Stores Pty Limited.

The central legal issue before the High Court was the interpretation of the phrase "hinders or prevents" within section 45B(1)(b) of the *Trade Practices Act*. Specifically, the court was required to determine whether the conduct of the milk vendors, in response to Jewel Food Stores introducing Victorian milk into the New South Wales market and selling it at a discount, constituted such hindrance or prevention of the supply of New South Wales pasteurised milk to Jewel Food Stores.

The respondent argued that the majority construction in the Federal Court was correct and that special leave should not be granted. The applicants' grounds of appeal focused on whether, on the facts, the milk vendors' actions could be characterised as hindering or preventing the acquisition by customers of Jewel Food Stores of New South Wales pasteurised milk. The background to the dispute involved Jewel Food Stores commencing the sale of Victorian milk in New South Wales, a practice described as unprecedented.