Directed Electronics OE Pty Ltd v OE Solutions Pty Ltd

In the case of Directed Electronics OE Pty Ltd v OE Solutions Pty Ltd, the dispute involved an application for an interlocutory injunction by the applicant, Directed Electronics OE Pty Ltd, against several respondents, including OE Solutions Pty Ltd and Hanhwa Korea. The applicant sought to prevent the respondents from terminating a supply agreement, which it claimed was based on long-standing conduct and not formally documented. The matter was heard in the Federal Court of Australia.

The legal issues the court was required to decide included whether the applicant had established a sufficient likelihood of proving the existence of a valid contract, whether the applicant would suffer irreparable harm if the injunction was not granted, and what constituted a reasonable period of notice for terminating the supply agreement. The court also needed to weigh the harm that each party would suffer if the injunction was granted or denied.

In its decision, the court found that while the respondents had some valid arguments, the applicant would suffer greater harm if the injunction was not granted than the respondents would suffer if it was granted. The court also found that damages may not be an adequate remedy for the applicant. Therefore, the court granted the injunction, but in a more limited form than requested by the applicant, extending only until 17 May 2018. The court considered this period to be a reasonable notice period for the respondents to wind down the supply arrangement.

The final orders of the court were that the fifth and twelfth respondents were restrained from acting upon the Hanhwa Korea Notice until 17 May 2018. The costs of the interlocutory application were to be reserved.