Elna Australia Pty Ltd v International Computers (Aust) Pty Ltd (No 2)

[1987] FCA 230

CATCHWORDS

TRADE PRACTICES - Consumer protection - Injunction under s.80 at sult of T.P.C. in respect of breaches of ss.52(1), 53(a) and 5 5 - Form of injunction - Whether wide form of inlunction should be granted by reason of admitted conduct of a particular kind

although its terms would embrace other possible conduct In whlch

the respondent was at risk of being involved but which was (a)

arguably not in breach of the Act: (b) not alleged In the

Statement of Claim against the respondent - Representatlon as to strength of reconstituted orange juice made from concentrate -

Principle that the consequences of a breach not prevlously

established against or shown to be threatened by the respondent should not be converted to the penalties applicable to contempt of Court - Principle that contempt proceedings should not be the occasion for the determination of the question whether in fact a contravention of the Act has occurred - Discretlon of the Court in respect of injunctions - Desirabllity of speclfylng the conduct proscribed by an injunction.

Trade Practices Act, 1974 - ss.52(1), 53(a), 5 5 , 80.

TRADE PRACTICES COMMISSION -V- GLO JUICE COMPANY PTY LIMITED

my,

P ~ >\

\

NSW G.6 of 1985 / 4 -1

y '.-	, .
' ,.

Burchett J.	I	.	b	k k
Sydney

19 May 1 9 8 7

I N THE	FEDERAL	COURT	OF	AUSTRALIA	1
)

NEW SOUTH	WALES	DISTRICT	REGISTRY	1	No.	6 o f 1985
1

GENERAL DIVISION	)
BETWEEN:

TRADE PRACTICES

COMMISSION

A p p l l c a n t

AND :

GLO J U I C E COMPANY	PTY
LIMITED

R e s p o n d e n t

MINUTE OF ORDER OF THE COURT

Judge Mak ing Orde r : B u r c h e t t J.

Date o f O r d e r : 19 May 1987

Where Made: S y d n e y

THE COURT ORDERS THAT:

( a ) The matter be s t o o d over t o a d a t e t o b e f i x e d t o e n a b l e

c o u n s e l t o p u t a n y f u r t h e r s u b m i s s i o n s a s t o t h e

d r a f t i n g o f a p r o p o s e d order i n t h e f o l l o w i n g f o r m a n d

a s t o t h e d a t e when	i t s h o u l d	come	i n t o e f f e c t :
-	THAT

T h e r e s p o n d e n t be r e s t r a i n e d from r e p r e s e n t i n g i n t r a d e

or commerce t h a t p r o d u c t l a b e l l e d a s or a s c o n t a i n i n g

orange f r u i t ju ice a n d s u p p l i e d b y i t c o n t a i n s a cer ta in

percentage o f t h e ju ice o f oranges u n l e s s :

(1) T h e r e s p o n d e n t s h a l l h a v e d i l i g e n t l y o b t a i n e d f r o m

e a c h s u p p l i e r c o n c e n t r a t e o f t h e u s e d i n

m a n u f a c t u r e o f t h e o r a n g e f r u i t j u i c e t h e most

a c c u r a t e a n d up-to-date i n f o r m a t i o n a v a i l a b l e f r o m

t h a t s u p p l i e r on t h e b a s i s o f w h i c h t o c a l c u l a t e

t h e correct q u a n t i t y o f water r e q u i r e d t o

reconsti tute s i n g l e s t r e n g t h o r a n g e ~ u l c e f r o m e a c h

c o n t a i n e r o f c o n c e n t r a t e s u p p l i e d	by	t h a t s u p p l l e r :
a n d

2 .

( 2 ) The respondent shall have reconstituted all concentrate used in the product on the basis of the information so obtained, save only for the correction of any error detected in that information, and so that the strenqth of the product would be not less than the strength stated on the respondent's label.

( b ) That questions of costs be reserved for consideration on

the date to be fixed.

NOTE:	Settlement and entry of orders 1s dealt with in Order 36
of the Federal Court Rules.

I N THE FEDERAL NEW SOUTH WALES DISTRICT REGISTRY COURT OF AUSTRALIA

N o . 6 o f 1985

GENERAL DIVISION

BETWEEN :

TRADE PRACTICES

COMMISSION

A p p l i c a n t

- AND :

GLO J U I C E COMPANY	PTY
LIMITED

R e s p o n d e n t

REASONS FOR JUDGMENT

BURCHETT J ,

T h e r e s p o n d e n t is a c o m p a n y w h i c h m a n u f a c t u r e s orange

f r u i t ju ice d r i n k . I ts s h a r e o f t h e A u s t r a l i a n m a r k e t f o r t h a t

p r o d u c t is a b o u t 5 t o 8 per cent. I n i t s S t a t e m e n t o f C l a i m , t h e

a p p l i c a n t a l l e g e d t h a t t h e respondent s u p p l i e d g o o d s f o r sa le b y

r e t a i l e r s i n c o n t a i n e r s l a b e l l e d " O R A N G E FRUIT J U I C E D R I N K -

CONTAINS 35% FRUIT J U I C E " , w h i c h g o o d s d i d n o t c o n t a i n 35 per

cent of t h e ju ice o f o r a n g e s a n d were n o t f a i r l y d e s c r i b e d o n t h e

containers.	P a r t i c u l a r s	t h i s	o f	a l l e g a t i o n	were	g i v e n	a s
f o l l o w s :

" ( a ) I n or a b o u t S e p e m b e r 1 9 8 4 t h

R e s p o n d e n t s u p p l i e d , e i t h e r d i r e c t l y or

t h r o u g h a d i s t r i b u t o r , a c o n t a i n e r

l a b e l l e d a s " o r a n g e f r u i t j u i c e d r i n k -

c o n t a i n s 35% f r u i t ju ice" t o F r a n k l l n s '

store a t Wal l aceway Shopp ing C e n t r e ,

Cha t swood , New S o u t h Wales, t h e con ten t s

o f w h i c h c o n t a i n e d n o t more t h a n 1 7 % of

t h e j u i c e o € o r a n y e s .

2.

( b ) I n or about November 1 9 8 4 t h e R e s p o n d e n t

s u p p l i e d , e i t h e r d i r e c t l y or t h r o u g h a

d i s t r i b u t o r , a conta iner l a b e l l e d a s

"orange f r u i t	j u i c e d r i n k	-	c o n t a i n s 35%
f r u i t ju ice"	t o F r a n k l i n s '	store i n t h e

B i r k e n h e a d P o i n t S h o p p i n g C o m p l e x ,

B i r k e n h e a d P o i n t , New S o u t h Wales, t h e

c o n t e n t s o f w h i c h c o n t a i n e d n o t more

t h a n 17% o f t h e ~ u i c e o f oranges.

( c ) I n or about November 1 9 8 4 t h e R e s p o n d e n t

s u p p l i e d , e i t h e r d i r e c t l y or t h r o u g h a

d i s t r i b u t o r , a c o n t a i n e r l a b e l l e d a s

"orange f r u i t j u i c e d r i n k - c o n t a l n s 3 5 %

f r u i t j u i c e " t o t h e Coles N e w W o r l d

S u p e r m a r k e t , c o r n e r o f R i c k a r d S t r e e t

a n d L a d y C u t l e r D r i v e , B a n k s t o w n , N e w

S o u t h Wales, t h e c o n t e n t s of w h i c h

contained	n o t more	t h a n	15% o f	t h e	juice
o f oranges.

( d ) F u r t h e r samples t h e R e s p o n d e n t ' s o f

g o o d s l a b e l l e d a s a f o r e s a i d w i l l b e

p u r c h a s e d . "

No f u r t h e r samples a s f o r e s h a d o w e d i n p a r t i c u l a r ( d )

were i n t r o d u c e d i n t o e v i d e n c e .

I t was a l l e g e d t h a t b y t h e c o n d u c t r e f e r r e d t o t h e

r e s p o n d e n t e n g a g e d i n c o n d u c t , i n t r a d e or commerce, t h a t was

m i s l e a d i n g or decept ive, or was l i k e l y t o m i s l e a d or d e c e l v e ,

c o n t r a r y t o t h e p rov i s ions o f s . 5 2 ( 1 ) o f t h e T r a d e P r a c t i c e s Act

1 9 7 4 ( " t h e Act"). Reliance was a l s o p l a c e d o n s . 5 3 ( a ) , s . 5 5 a n d

s . 8 0 ( l ) ( a ) o f t h e A c t . T h e r e l i e f s o u g h t was b y w a y o f

i n j u n c t i o n , t h e f o r m of t h e i n j u n c t i o n t h e C o u r t was a s k e d t o

m a k e be ing r e f i n e d d u r i n g t h e course o f t h e p r o c e e d i n g s t o t h e

f o l l o w i n g :

"An i n j u n c t i o n r e s t r a i n i n g t h e r e s p o n d e n t i n

t r a d e or commerce s t a t l n g f r o m o r

r e p r e s e n t i n g on t h e l a b e l o r packalqes o f

o r a n g e f r u i t ~ u i c e d r i n k s supp1 le t - l by t h e

r e s p o n d e n t t h a t t h a t o r a n g e f r u l t ~ u l c e

3 .

d r i n k c o n t a i n s a ce r ta in p e r c e n t a g e o f t h e

j u i c e o f o r a n g e s w h e n i n f a c t i t c o n t a i n s

less t h a n e s ta ted or r e p r e s e n t e d

p e r c e n t a g e of t h e juice o f oranges."

T h e r e s p o n d e n t d i d n o t d i s p u t e t h e a l l e g a t i o n s t o which

I h a v e r e f e r r e d , n o r d i d i t s u g g e s t t h a t t h e a d u l t e r a t i o n t o

w h i c h t h o s e a l lega t ions p o i n t e d 1s e x p l i c a b l e o n a n y basis o t h e r

t h a n t h e n e g l i g e n c e o f some p e r s o n or some del iberate a c t . Of

c o u r s e i t was u n n e c e s s a r y f o r t h e a p p l i c a n t t o s h o w e i t h e r

n e g l i g e n c e or d e l i b e r a t i o n (see P a r k d a l e C u s t o m B u i l t F U K n l t U t - e

P r o p r i e t a r y L i m i t e d v . P u x u P r o p r i e t a r y L imi t ed ( 1 9 8 2 ) 149 C.L.R.

1 9 1 a t 1 9 7 1 , a n d n o e v i d e n c e was l e d by e i t h e r p a r t y t o show how

t h e matters a l l e g e d i n t h e S t a t e m e n t o f C l a i m h a d i n f a c t a r i s e n .

T h e a d u l t e r a t i o n may h a v e o c c u r r e d d u r i n g a p r o c e s s p e r f o r m e d b y

t h e r e s p o n d e n t , o r t h e r e s p o n d e n t m a y h a v e f a i l e d t o d e t e c t

a d u l t e r a t i o n i n c o n c e n t r a t e d o r a n g e j u i c e p u r c h a s e d and used by

i t . T h e G e n e r a l M a n a g e r o f t h e r e s p o n d e n t , Mr. S a i n s b u r y , who

g a v e v i d e n c e a n d was c r o s s - e x a m i n e d a t l e n g t h , o n l y j o i n e d t h e

company a s its G e n e r a l M a n a g e r o n 2 J a n u a r y 1 9 8 5 .

T h e i s s u e d i s p u t e d b e t w e e n t h e p a r t i e s was s i m p l y t h e

e x t e n t t o w h i c h , a n d t h e terms i n w h i c h , i t w a s a p p r o p r i a t e t o

g r a n t i n j u n c t i v e r e l i e f . A t t h e r i s k o f o v e r - s i m p l i f i c a t i o n , t h e

r e s p o n d e n t ' s p o s i t i o n may b e summarised a s f o l l o w s . I t p r o d u c e s

orange f r u i t j u i c e d r i n k b y m i x i n g a n d d i l u t i n g c o n c e n t r a t e s of

orange j u i c e p u r c h a s e d f r o m a v a r i e t y o f sources, b o t h o v e r s e a s

a n d w i t h i n A u s t r a l i a . I t is n e c e s s a r y a n d a p p r o p r i a t e f o r i t t o

a c t u p o n t h e b a s i s t h a t t h e c o n c e n t r a t e s u p p l i e d t o i t c o m p l l e s

w i t h t h e s p e c i f i c a t i o n s u p o n w h i c h t h a t c o n c e n t r a t e was s u p p l i e d ,

a n d i t 1s n o t r e a s o n a b l e ~n t h e c i r c u m s t a n c e s of t h l s c a s e t o

4 .

s u b j e c t I t t o a n i n j u n c t i o n t h e terms o f w h l c h I t m i g h t be u n a b l e

t o a v o i d b r e a c h i n g b y v i r t u e o f c i r c u m s t a n c e s a p p l y l n g g e n e r a l l y

i n t h e o r a n g e f r u i t j u i c e i n d u s t r y I n A u s t r a l i a , a n d w h i c h w o u l d

be beyond A u s t r a l i a n a n d Its c o n t r o l imported a s c o n c e n t r a t e s . l n d l v l d u a l a n company u t i l l z l n g

An aspect o f t h i s problem w h i c h r e c e i v e d a great dea l o f

a t t e n t i o n d u r i n g t h e h e a r i n g 1s t h e u n i v e r s a l , o r c e r t a i n l y

v i r t u a l l y u n i v e r s a l , p r a c t i c e i n t h e A u s t r a l l a n o r a n g e f r u l t

) u i c e i n d u s t r y r e c o n s t i t u t i o n p r o d u c i n g o f c o n c e n t r a t e d o r a n g e ~ u l c e f o r

a c c o r d i n g t o a c o n v e n t i o n a l s t r e n g t h o f n a t u r a l

o r a n g e J u i c e r a t h e r t h a n f o r a t t e m p t e d r e c o n s t i t u t i o n t o t h e

o r i g i n a l s t r e n g t h o f t h e p a r t i c u l a r b a t c h o f J u i c e f r o m w h l c h t h e

c o n c e n t r a t e was made. T h e m e a s u r e o f s t r e n g t h adopted f o r t h i s

. p u r p o s e is d e g r e e s B r i x , a m e a s u r e o f t h e t o t a l s o l u b l e so l ld s l n

t h e o r a n g e j u i c e . C o n c e n t r a t o r s , w h e t h e r I n d e p e n d e n t c o m p a n i e s

or c o - o p e r a t i v e s o f o r a n g e p r o d u c e r s , do n o t m e a s u r e a n d record

t h e d e g r e e s B r i x o f p a r t i c u l a r b a t c h e s o f orange Juice w h i c h t h e y

c o n c e n t r a t e , b u t p r o v i d e i n f o r m a t i o n t o enable r e c o n s t i t u t i o n o n

t h e basis o f w h a t is t a k e n t o be t h e a p p r o x l m a t e a v e r a g e degrees

B r i x o f A u s t r a l i a n o r a n g e j u i c e , n a m e l y t e n degrees B r l x . I n

f a c t some o f t h e j u i c e may be i n t h e r e g l o n o f e i g h t degrees

B r i x , a n d o t h e r j u i c e m a y b e i n t h e r e g i o n o f t w e l v e deg rees

B r i x . T h e o r e t i c a l l y s p e a k i n g , e a c h o r a n g e may have a d i f f e r e n t

B r i x v a l u e , a n d i t i s t h e case t h a t v a l u e s v a r y b r o a d l y w l t h

c o u n t r i e s , l oca l i t i e s , o r c h a r d s a n d p a r t s of o r c h a r d s , e v e n sldes

of trees, s e a s o n s , v a r i e t i e s o f o r a n g e , o r c h a r d i n q p r a c t i c e s , a n d

t h e s t a g e o f m a t u r i t y o f t h e f r u i t .

5 .

T h e p i c t u r e i s c o m p l i c a t e d b y t h e w i d e s p r e a d u s e o f

c o n c e n t r a t e s imported f r o m o v e r s e a s , w h e r e B r l x v a l u e s a r e

g e n e r a l l y h i g h e r t h a n i n A u s t r a l i a , a s is e v l d e n c e d b y t h e f a c t

t h a t i n t h e U n i t e d S ta tes , where a c o m p a r a b l e c o n v e n t i o n e x l s t s ,

t h e s t a n d a r d i z e d B r i x v a l u e i s 1 1 . 8 . I t i s o b v i o u s t h a t

a d h e r e n c e t o s u c h a c o n v e n t i o n m u s t m a k e i t t h e o r e t i c a l l y

possible f o r a p a r t i c u l a r b a t c h o f r e c o n s t l t u t e d o r a n g e ~ u i c e t o

be e i t h e r o v e r or u n d e r t h e o r i g i n a l s t r e n g t h o f t h e j u l c e f r o m

w h i c h t h e c o n c e n t r a t e was made. The e x t e n t t o w h l c h t h l s r e s u l t

would be l i k e l y t o be a f f e c t e d i n p r a c t i c e 1 n A u s t r a l i a b y t h e

b l e n d i n g o f d i f f e r e n t l y s o u r c e d c o n c e n t r a t e s , a n d c o n c e n t r a t e s

made f r o m t h e j u i c e s of o r a n g e s o f d i f f e r e n t v a r l e t l e s , was n o t

e x p l o r e d i n t h e e v i d e n c e o f e l t h e r p a r t y a t t h e h e a r i n g . I t d l d

appear t h a t t h e r e s p o n d e n t a n d o t h e r c o n v e r t e r s ( a s t h o s e who

m a n u f a c t u r e r e c o n s t i t u t e d j u i c e f r o m c o n c e n t r a t e s a r e c a l l e d ) do

c o m m o n l y b l e n d i f f e r e n t b a t c h e s o f c o n c e n t r a t e s . T h e r e was n o

e v i d e n c e t h a t a n y p a r t i c u l a r o r a n g e ~ u l c e p r o d u c t t h e o f

r e s p o n d e n t h a d e v e r b f o u n d e n t o d i l u t e d b e b e l o w I t s

r e p r e s e n t e d s t r e n g t h r e a s o n b y t h e r e c o n s t l t u t i o n o f o f

c o n c e n t r a t e i n a c c o r d a n c e w l t h t h e c o n c e n t r a t o r ' s d i r e c t l o n s

based o n t h e A u s t r a l i a n c o n v e n t i o n t o w h i c h I h a v e r e f e r r e d . T h e

a p p l i c a n t p o i n t e d t o t h e e x i s t e n c e o f a r l s k o f u n d e r - s t r e n g t h

r e c o n s t i t u t i o n , w h i l e t h e r e s p o n d e n t p o i n t e d t o t h e p r o s p e c t t h a t

much o r a n g e j u i c e w o u l d be r e c o n s t l t u t e d a t i n c r e a s e d s t r e n q t h ,

p a r t i c u l a r l y i n t h e c u r r e n t s e a s o n , w h e n a c c o r d l n g t o some

e v i d e n c e l a r g e q u a n t i t i e s o f l u i c e e x p r e s s e d f r o m A u s t r a l l a n

o r a n g e s h a v e b e e n f o u n d t o be w e l l b e l o w t h e c o n v e n t l o n a l

s t a n d a r d o f t e n d e g r e e s B r l x .

6.

T h e a p p l i c a n t ' s a r g u m e n t was n o t c o n c e r n e d w i t h t h e

merits, f r o m t h e p o i n t o f v i e w o f p u b l i c h e a l t h , o f t h e s u p p l y o f

a d r i n k o r a n g e s , w h e t h e r o f c o n t a i n i n g a precise p r o p o r t i o n o f ~ u i c e o f p a r t i c u l a r

low or h i g h B r l x v a l u e , a s a g a i n s t t h e s u p p l y

o f a e i t h e r side d r i n k c o n t a i n i n g j u i c e a t a s t a n d a r d i z e d s t r e n g t h , n o r d l d

c o n c e r n i t s e l f w i t h t h e q u e s t i o n w h e t h e r ( i n t h e case

o f a sale o f f u l l - s t r e n g t h ~ u i c e ) i t is o r is n o t h e a l t h y f o r

human b e i n g s t o d r i n k o r a n g e j u i c e o f h l g h B r i x v a l u e u n d i l u t e d .

T h e s e , o f c o u r s e , w o u l d be q u e s t i o n s , n o t f o r t h e C o u r t , b u t f o r

t h e a u t h o r i t i e s r e g u l a t i o n s . r e s p o n s i b l e f o r t h e f o r m u l a t i o n o f p u r e f o o d s

So f a r a s t h e l a w f u l n e s s o f c o n d u c t i n v o l v e d i n t h e

p r o d u c t i o n a n d s a l e , a s o r a n g e j u i c e , o f ~ u i c e r e c o n s t i t u t e d

a c c o r d i n g t o t h e A u s t r a l i a n i n d u s t r y s t a n d a r d is c o n c e r n e d , t h e

q u e s t i o n depends upon a proper u n d e r s t a n d i n g w h a t o f i s

r e p r e s e n t e d b y t h e l a b e l a n d o f w h a t may be shown t o h a v e b e e n

d o n e i n d i s c r e t i o n a r y t h e p a r t i c u l a r case. H o w e v e r , s l n c e a n l n ~ u n c t l o n 1s a

remedy, wider q u e s t l o n s a r e I n v o l v e d I n r e a c h i n g a

d e c i s i o n a s t o t h e a p p r o p r i a t e r e l i e f t o be g r a n t e d i n t h e

p r e s e n t matter.

A l t h o u g h t h e case was f o u g h t o v e r a q u i t e n a r r o w f l e l d

o f c o n f l i c t , t h e p a r t i e s d i s p u t e d l t v e r y t h o r o u g h l y . T h e

h e a r i n g o r i g i n a l l y c o n c l u d e d o n 28 J u n e 1985, b u t b y c o n s e n t i t

was r e - o p e n e d on 4 October 1985 f o r t h e c a l l i n g of f r e s h

e v i d e n c e . I t f i n a l l y c o n c l u d e d , a f t e r t h e c a l l i n g o f y e t f u r t h e r

f r e s h e v i d e n c e , o n 2 3 May 1986, s u b ~ e c t t o t h e l o d g m e n t o f

w r i t t e n s u b m i s s i o n s . Very d e t a i l e d s u b m l s s l o n s were lodqed by

t h e p a r t l e s , c u l m i n i n a t i n g i n a f i f t y - t w o p a g e s u b m l s s l o n o n

b e h a l f o f t h e a p p l i c a n t lodged o n 18 Decembrr 1 9 8 6 .

The evidence reveals that there 1s a degree of

arbitrariness about what is recognized as being orange ~uice.

For reasons related both to the desirability of reducing the bulk

and weight of liquid to be transported long distances and the greater immunity of concentrates from bacterial attack and other causes of deterioration, orange juice as sold to the consumer is normally a product of reconstitution from concentrates. D r . Chandler, the expert relied on by the appllcant, said that orange

Juice processors in Brazil, which is the world's largest exporter of orange juice, do not operate by providing a correct reconstitution ratio of the juice but by specifying a method of dilution guaranteed to produce a product conforming to a set of composition requirements. Those requlrements are expressed as ranges within which each particular chemical component of the juice must fall, for it to be accepted as genuine orange juice. They were established by West German scientists, West Germany

being a m a ~ o r importer of Brazilian ~uice. They are known as

R.S.K. values. While a failure to fall wlthln a sufficient

number of these ranges will provide scientific evldence of

adulteration, D r . Chandler made it clear that the German

scientists do not claim, nor dld he suggest, that sufficient

compliance d monstrates the precise reconstitution of a

concentrate into a juice identical with that which was originally

concentrated. (Indeed, a letter ln evldence from a leadlng

German authority, Prof. Bielig, consulted by Dr. Chandler, asserted the impossibility of proving or flndlng o u t from a

concentrate the characteristlcs of the oriqinal ~ulce, and Dr.

Chandler hlmself, though a r q u l n q €or a s t r l n q e n t ~ n s ~ ~ t e n c e t h a t

8.

r e c o n s t i t u t e d o r a n g e j u i c e be a s c l o s e a s p o s s l b l e t o t h e

o r i g i n a l b a t c h o f - j u i c e f r o m w h i c h 1t was made a n d t h a t a

s t a n d a r d i z e d B r i x v a l u e b e n o t c o n s i d e r e d a c c e p t a b l e , c o n c e d e d

t h a t a r e c o n s t i t u t e d o r a n g e j u i c e w i t h 9 5 % - j u i c e c o n t e n t s h o u l d

be regarded t h a t t h e r e c o n s t i t u t e d j u i c e a s o r a n g e j u i c e . ) W h a t c o m p l i a n c e d e m o n s t r a t e s is

meets c h e m l c a l r e q u i r e m e n t s accepted

a s s u f f i c i e n t . T h i s i t u a t i o n may be compared w i t h t h e u s e o f

s t a n d a r d i z e d B r i x v a l u e s i n t h e U n i t e d S t a t e s a n d , t o d a t e , i n

A u s t r a l i a . Also, c e r t a i n v o l a t i l e f l a v o u r i n g s u b s t a n c e s o r

d i s t i l l a b l e o i l s n o r m a l l y p r e s e n t i n f r e s h - j u i c e s q u e e z e d f r o m

o r a n g e s , w h i c h a re r e g a r d e d a s i m p o r t a n t q u a l i t y c h a r a c t e r i s t i c s

o f o r a n g e u s u a l l y j u i c e , a r e lost i n t h e c o n c e n t r a t i o n p r o c e s s , a n d a r e

r e p l a c e d b y a c o n v e r t e r , n o t i n a n a t tempt t o a c h i e v e a

p rec i se r e c o n s t i t u t i o n o f t h e o r i g i n a l - j u i c e , w h i c h w o u l d b e

impossible, b u t a c c o r d i n g t o h i s estimate o f t h e t a s t e s o f t h e

c o n s u m e r s o f h i s p r o d u c t .

T h e r e are , too, wha t I t h i n k c a n o n l y be descr ibed a s

c o n v e n t i o n s c o n c e r n i n g t h e n a t u r e of t h e f r u i t u s e d t o p r o d u c e a

c o n c e n t r a t e o f w h a t i s c a l l e d o r a n g e - j u i c e . No o n e u s i n g

o r d i n a r y E n g l i s h w o u l d d e c l i n e t o c a l l t h e j u i c e of o r a n g e s

" o r a n g e j u i c e " m e r e l y b e c a u s e c h e m l c a l tes ts s h o w e d t h e o r a n g e s

i n q u e s t i o n h a d n o t f u l l y m a t u r e d , t h o u g h a p p a r e n t l y r ipe , or

e v e n i f t h e y d i d n o t appear q u i t e r ipe. Bu t Dr. C h a n d l e r made I t

c l e a r t h a t j u i c e o f t h a t k i n d w o u l d n o t q u a l i f y i n a n e x p e r t

s e n s e , a n d t h a t u p o n a n a l y s i s i t would be l i k e l y t o f a l l q u i t e

o u t s i d e t h e R . S . K . parameters. I t is i n t e n d e d t o be p r o s c r i b e d

u n d e r a p r o p o s e d code p r e s e n t l y u n d e r d i s c u s s i o n b y a committee

of t h e N a t i o n a l H e a l t h a n d M e d l c a l R e s e a r c h r o u n c l l w l l ! ? a 'r'lcw

9.

to i t s a d o p t i o n b y r e g u l a t i o n t h r o u g h o u t A u s t r a l l a . A t t h e same

time, b e c a u s e i n t e r n a t i o n a l f o o d r e g u l a t i o n s a l low t e n p e r c e n t o f

m a n d a r i n j u i c e t o be i n c o r p o r a t e d i n c o n c e n t r a t e d o r a n g e ~ u l c e ,

D r . C h a n d l e r c o n s i d e r e d imported o r a n g e j u i c e c o u l d wel l be

composed o f s u c h a m i x t u r e , a n d h e said t h a t u n d e r t h e p r o p o s e d

code f o r A u s t r a l i a "it is s u g g e s t e d y o u c a n m i x m a n d a r i n ~ u l c e

a n d s t i l l c a l l i t o r a n g e j u i c e ' , a s r e c o g n i z e d t h b y

i n t e r n a t i o n a l r e g u l a t i o n s . I d o n o t h i n k t h e o r d i n a r y c o n s u m e r

w o u l d ( o u t s i d e a s h o p s e l l i n g processed f r u i t d r i n k ) c a l l

mandarin j u i c e orange j u i c e , a n d a c c o r d i n g to D r . C h a n d l e r , i n a t

l eas t o n e respect, i t s c a r o t e n o i d v a l u e , t h e c h e m i c a l c o m p o s i t i o n

is " s i g n i f i c a n t l y d i f f e r e n t " . By way o f c o n t r a s t t o t h e p o s i t i o n

i n respect o f m a n d a r i n j u i c e , D r . C h a n d l e r e f e r r e d t o S e v l l l e

o r a n g e j u i c e a s ~ u i c e o f "a d i f f e r e n t v a r i e t y o f o r a n g e s f r o m

N a v e l a n d V a l e n c i a o r a n g e s " , b u t sa id t h a t S e v i l l e o r a n g e ~ u i c e

i s n o t a l l owed t o be i n c l u d e d i n o r a n g e j u i c e i n a n y c o u n t r y

e x c e p t America, w h e r e i t may be added to a limit o f f i v e p e r c e n t .

I t may be t h o u g h t t h a t , i n p r i n c i p l e , n o n e o f t h i s w o u l d r e a l l y

s u r p r i s e a p u r c h a s e r o f t h e r e s p o n d e n t ' s p r o d u c t who read t h e

l abe l a n d saw t h a t i t i n d i c a t e d ( a s i t d i d ) t h a t t h e d r i n k was

made f r o m i n g r e d i e n t d i d n o t " c o n c e n t r a t e d o r a n g e j u i c e " . He would know t h a t t h a t

come s t r a i g h t f r o m a tree, a n d w o u l d e x p e c t i t

t o c o n f o r m to some e s t a b l i s h e d m a n u f a c t u r i n g p r o c e d u r e . A f t e r

a l l , water is a large part o f a n y f r u i t ~ u i c e , a n d t h e water i n a

r e c o n s t i t u t e d j u i c e was n e v e r p a r t o f t h e f r u i t - a s a v e r y

p r o m i n e n t D u t c h e x p e r t , P r o f . P i l n i k , r a t h e r s a c a s t l c a l l y

p o i n t e d o u t i n a l e t t e r i n e v i d e n c e d e a l i n g w i t h w h a t h e t h o u q h t

were n a i v e o b ~ e c t i o n s t o a r e a d i n g o f E . E . C . r e g u l a t i o n s wh lch

a c c e p t e d t h e s t a n d a r d i z e d n a t u r e of f r u i t l u i c e as 3 n i t em o f

world t r a d e a n d a n i n g r e d i e n t l n f o o d p r o d u c t s .

.. 10.

I t w i l l be c lear t h a t n e i t h e r I n E u r o p e nor i n America

can i t be sa id t h a t a r e c o n s t l t u t e d orange j u i c e i s i d e n t i c a l i n

composition t o t h e o r i g i n a l b a t c h o f ~ u l c e f r o m w h i c h t h e

concentrate was made. Nor can t h i s b e s a i d i n A u s t r a l l a . B u t

t h e a p p l i c a n t ' s argument l e f t a s i d e t h e l o s t v o l a t i l e f l a v o u r i n g

substances a n d t h e i r r e p l a c e m e n t , a n d t h e o t h e r mat ters t o w h l c h

I h a v e producers o f r e f e r r e d , t o f o c u s o n t h e p r a c t i c e o f t h e A u s t r a l l a n

s p e c i f y i n g a r e c o n s t i t u t l o n r a t i o t o yield a j u l c e

of t e n reconsti tuted juice made by t h e d e g r e e s B r i x . I t was a r g u e d t h e r e c o u l d b e a

r e s p o n d e n t f r o m a n A u s t r a l i a n

c o n c e n t r a t e , w h i c h h a d come f rom a b a t c h o f orange juice t h e B r i x

v a l u e o f w h i c h was greater t h a n t e n , a n d t h a t i f t h e p r o d u c e r s '

d i rec t ions were f o l l o w e d s u c h a ~ u l c e w o u l d b e d i l u t e d compared

to t h e j u r c e i n t h e o r l g i n a l b a t c h . T h e p r o d u c t m i g h t i n d e e d

h a v e t h e B r i x v a l u e o f a n a v e r a g e orange ju i ce - b u t n o t t h a t o f

t h e p a r t i c u l a r juice f rom which I t was made. An e x a m p l e m i g h t

a r i s e i f c o n c e n t r a t e o f N a v e l o range j u i c e ( w h l c h i s a t t h e

h i g h e r e n d o f t h e B r i x range) were u s e d w i t h o u t b e l n g b l e n d e d , a s

i s u s u a l l y d o n e , w i t h V a l e n c i a o r a n g e j u i c e ( w h l c h 1 s a t t h e

lower e n d o f t h e B r i x r a n g e ) , or ~f t h e j u i c e , w h e t h e r o r n o t

b l e n d e d , h a p p e n e d t o e x c e e d t e n d e g r e e s B r i x . T h e a p p l i c a n t ' s

a r g u m e n t assumed t h a t i t w o u l d t h e r e f o r e b e m i s l e a d i n g t o c a l l i t

o r a n g e ju ice , even i f I t were made c lear t h a t i t was

recons t i tu ted orange j u i c e .

The case p l e a d e d i n t h e S t a t e m e n t o f C l a l m 1s n o t a case

w h e r e s c i e n t i f i c a n a l y s i s , a c c o r d l n g t o R . S . K . v a l u e s or o n a n y

o t h e r b a s i s , h a s detected a n o v e r - d i l u t ~ o n r e s u l t l n q from the usc

.

.. 11.

o f A u s t r a l i a n concentrate r e c o n s t i t u t e d i n a c c o r d a n c e w i t h t h e

c o n v e n t i o n a l t e n degrees B r i x . I n a ca se o f t h a t s o r t , t h e

precise wording t h e o f l a b e l m i g h t h a v e t o e x a m l n e d , b e

p a r t i c u l a r l y i f I t i n c l u d e d ( a s t h e r e s p o n d e n t ' s l a b e l d o e s ) a

statement i n d i c a t i n g t h a t t h e p r o d u c t was m a d e f r o m c o n c e n t r a t e d

orange l u i c e , i n t h e l i g h t o f t h e A u s t r a l i a n p rac t i ce of

r e c o n s t i t u t i o n t o wha t is t a k e n t o be a n a v e r a g e s t r e n g t h , a n d i n

t h e l i g h t r e c o n s t i t u t i o n o f t h e f a c t h a t a p p a r e n t l y n o w h e r e i n t h e w o r l d 1s

a c t u a l l y attempted t o t h e p r e c i s e composltlon o f

t h e p a r t i c u l a r b a t c h of o r i g i n a l j u i c e . I n l n t e r p r e t i n g t h e

l a b e l , r e g a r d m i g h t be h a d t o t h e c o n v e n t i o n a l n a t u r e o f t h e

d e f i n i t i o n o f o r a n g e ~ u i c e a d o p t e d b y e x p e r t s u c h a s D r .

C h a n d l e r . B u t , a s I h a v e s a i d , t h i s is n o t a case o f t h a t k i n d .

Wha t led t o t h e p r e s e n t a p p l i c a t i o n was s o m e t h i n g d i f f e r e n t

a l t o g e t h e r - a d e l i b e r a t e o r n e g l i g e n t a d u l t e r a t l o n b y some

p e r s o n or p e r s o n s w h e t h e r e m p l o y e d b y t h e r e s p o n d e n t o r b y a

c o n c e n t r a t o r .

I n t h e p resent case, t h e r e s p o n d e n t s a y s t h a t i t would

be wrong , where wha t has been p roved is a q u l t e l l m i t e d n u m b e r of

b r e a c h e s o f a pa r t i cu la r c h a r a c t e r , n o t l n v o l v l n g a n y d i f f l c u l t

d e f i n i t i o n a l n ice t ies , t o g r a n t a n i n j u n c t i o n I n t h e terms s o u g h t

b y t h e a p p l i c a n t . For i t is s a i d t h a t t h o s e terms would embrace,

n o t o n l y e s t a b l i s h e d , a case o f a b r e a c h o f t h e k l n d w h i c h h a s been

b u t a l s o a case o f t h e k l n d I h a v e r e f e r r e d t o ,

s h o u l d t h e C o u r t b e f o r e w h l c h l t came r e g a r d l t a s l n d e e d

i n v o l v i n g a b r e a c h . T h a t w o u l d b e t o convert t h e c o n s e q u e n c e s of

a b r e a c h , t h r e a t e n e d n o t p r e v l o u s l y e s t a b l l s h e d a g a l n s t o r s h o w n t o b e

b y t h e r e s p o n d e n t , from t h e p e n a l tips provld+.d !)v the

. I L .

Act, u n d e r w h i c h a c o n t r a v e n t l o n o f s.52 s o u n d s o n l y i n c i v i l

remedies ( see s . 7 9 ( 1 ) ) , a n d n o c o n t r a v e n t i o n i s l n l t s e l f a

contempt, t o t h e g r a v e p e n a l t i e s a p p l i c a b l e t o c o n t e m p t of c o u r t

b y b r e a c h c o n t e m p t o f a n i n j u n c t i o n . I t w o u l d a l s o be t o m a k e t h e

p r o c e e d i n g s t h e o c c a s i o n f o r t h e d e t e r m l n a t l o n of t h e

q u e s t i o n w h e t h e r i n f a c t t h e r e s p o n d e n t h a d c o n t r a v e n e d t h e

s t a t u t e b y e n g a g i n g i n c o n d u c t of t h e p a r t i c u l a r k i n d e n v i s a g e d .

I n World Series Cr i cke t P t y . L t d . v . P a r i s h (1977) 1 6

A.L.R. 180 a t 199 Brennan J. sa id :

"When a n i n j u n c t i o n is s o u g h t t o r e s t r a l n a

c o r p o r a t i o n f r o m e n g a g i n g 1 n c o n d u c t o f a

c e r t a i n k i n d , t h e i s s u e is w h e t h e r c o n d u c t o f

a n s w e r d e s c r i p t i o n i f s t a t u t o r y t h e

t h a t k i n d w o u l d

t h e c o r p o r a t i o n were to e n g a g e

i n i t . i n j u n c t i o n is T h e s t a t u t o r y r e m e d y b y w a y of

i n t h e d i s c r e t i o n o f t h e c o u r t

- b o t h a s t o t h e m a k i n g o f a n i n j u n c t l v e

order	a n d	a s	t o	i t s	terms."	(Emphases
a d d e d . )

I n V i c t o r i a n Egg M a r k e t i n g Board v . Pa rkwood Eggs P ty L t d (1978)

33 F.L.R. a t 307 Bowen C.J. sa id :

" A g r a n t i n j u n c t i o n s o f j u r i s d i c t l o n t o make i n t e r l m

t o r e s t r a i n c o n d u c t t h a t

c o n t r a v e n e s or w o u l d c o n t r a v e n e P t s I V or V ,

c o n t e m p l a t e s t h a t t h e c o u r t w i l l s a t i s f y

itself t h a t h e p e r s o n b e i n g r e s t r a i n e d h a s

e n g a g e d or h a s t h r e a t e n e d t o e n g a g e i n s u c h

c o n d u c t . H a v i n g d e t e r m i n e d t h a t i s s u e , t h e

m a n n e r i n w h i c h t h e c o u r t will p r o s c r i b e t h e

c o n d u c t d e p e n d s o n p r i n c i p l e s d r a w n f r o m t h e

g e n e r a l l aw, e x c e p t a s m o d i f i e d t h e b y

s u c c e e d i n g s u b s e c t i o n s . "

Later o n t h e same p a g e r e f e r r e d h t o t h e s h o w l n g o f a

c o n t r a v e n t l o n or a n attempted or i n t e n d e d c o n t r a v e n t l n n a s t h e

s a t i s f a c t i o n o f a c o n d i t i o n o n wh lch t h e ~ n ~ u n c t l v t : powet-

. . 13.

commences t o o p e r a t e . S e e a l s o t h e p a s s a g e f r o m t h e j u d q m e n t o f

Gibbs J. i n M i k a s a (NSW) P t y L t d v . F e s t i v a l Stores (1972) 127

C.L.R. 617 a t 6 5 1 c i t e d i n f r a .

T h e conduct s o u g h t t o b e r e s t r a i n e d i n t h e p r e s e n t case

( a s a p p e a r s f r o m t h e a p p l i c a n t ' s s u g g e s t e d f o r m o f order i n t h e

c o n t e x t of t h e e v i d e n c e , a n d a s f r a n k l y a c k n o w l e d g e d b y i t s

c o u n s e l ) i n c l u d e s c o n d u c t i n w h i c h t h e r e s p o n d e n t was n o t a l l e g e d

t o h a v e c o n d u c t w h i c h n g a g e d , or t o h a v e t h r e a t e n e d t o e n g a g e . I t i n c l u d e s

may or may n o t h a v e o c c u r r e d or b e l i k e l y t o o c c u r ,

d e p e n d i n g r e s p o n d e n t ' s u p o n t h e p u r c h a s i n g b l e n d i n g a n d

p r a c t i c e s , s o u r c e s s u p p l y , o f m a n u f a c t u r i n g p r o c e d u r e s , a n d

l a b e l l i n g o f i t s p r o d u c t s . To t a k e b u t o n e e x a m p l e , t h e e v i d e n c e

i s t h a t i t i s common t o b l e n d N a v e l a n d V a l e n c i a ~ u i c e s , a n d

( d e s p i t e w h a t h a s a l r e a d y b e e n s a i d a b o u t t h e r i s k s o f

r e c o n s t i t u t i o n ) a b l e n d e d j u i c e o f t h a t k i n d m i g h t well h a v e a

B r i x v a l u e o f t e n degrees or lower, t e n d i n g t o p r o d u c e o v e r

r a t h e r t h a n u n d e r c o n c e n t r a t i o n u p o n r e c o n s t i t u t i o n . Yet t h e

c o n t e s t b e f o r e me was n o t c o n c e r n e d w i t h t r e s p o n d e n t ' s

b l e n d i n g p r a c t i c e s , s i n c e t h e r e was n o s u g g e s t i o n i t s b r e a c h e s

were a c o n s e q u e n c e o f r e c o n s t i t u t i o n o f A u s t r a l i a n c o n c e n t r a t e t o

t e n degrees B r i x . T h e e v i d e n c e d e a l t w i t h t h e r i s k s i n h e r e n t I n

t h e u s e o f c o n c e n t r a t e s u p p l i e d b y o t h e r s , o f whom some were

w i t h i n t h e j u r i s d i c t i o n b u t f o r m u l a t e d t h e i r p r o d u c t a c c o r d i n g t o

a n i n e x a c t r e a s o n a b l e c o n v e n t i o n ( w h i c h , h o w e v e r , D r . C h a n d l e r s a i d "may be

f o r A u s t r a l i a n sourced c o n c e n t r a t e " ) , w h i l e some were

o v e r s e a s so t h a t t h e i r p r o c e d u r e s were n o t w i t h i n r e a c h of a n y

p o s s i b l e k i n d of c o n t i n u o u s m o n i t o r i n g b y t h e r e s p o n d e n t . T h a t

e v i d e n c e w a s c a l l e d b e c a u s e t h e r e s p o n d e n t suqqested i t qhowed

14.

the form of injunction sought was inappropriately wide, not because the Statement of Claim raised any issue, to use the language of s.80( l ) , that the respondent had "engaged or [was]

proposing to engage in conduct [involving the reconstitution of Australian concentrate as directed by the concentrators in accordance with the Australian orange juice producers' practice to ten degrees Brix] that constitutes or would constitute ... a contravention of a provision of Part V." The applicant itself asserted, in cross-examination and in argument, that what was

alleged in the Statement of Claim, as particularised, was conduct

of a quite different kind, an over-dilution not explicable by

reference to any industry practice. A similarity of consequence

does not make for an identity of conduct.

Even if, notwithstanding the form of the pleading, the case is assumed to raise the question whether the respondent "is

proposing to engage" in conduct involving the concentration

practice under discussion (see s.80(1)), there would still be the

difficulty that it has not been shown that in fact conduct of

that kind "would constitute . .. a contravention" within the

meaning of s.80(l)(a). The evidence points to a risk, but no

more. The only contraventions pleaded occurred in some other

way. In the absence of evidence that the Australian concentration practice, as implemented in respect of the particular blends of concentrates used by the respondent, and in its processes, has ever brought about a contravention of the Act, I would not be prepared on the material before me to conclude that the respondent is proposing to enqaqe in conduct that would constitute a contravention of the 5 u g q e ~ t e d k i n d . The cas,?

15.

should be decided on the basis pleaded of the partlcular contraventions which have occurred. That the Court should have regard to what is alleged and proved under s . 8 0 ( 1 ) is emphasized by the limited extension of lts powers, in the case of a consent order, conferred by subsection (1AA). I have not overlooked subsection(4). but I do not think it can enlarge, or if it qives me a discretion that I should exercise it so as to enlarge, the case propounded and fought.

In the World Cricket case, ubi supra, Brennan J.

continued:

"In exercising its statutory discretlon,

however, the court refers to equitable

principles if only to ensure that factors

which are relevant to the exercise of the

discretion a re not omitted from

consideration. Although the principles of

equity do not mark the limits of relevancy or

solely determine the exercise of the

statutory discretion, they are relevant

norms which may provide assistance in larger

or smaller measure according to the closeness

of the equitable analogue to the case in

hand. "

In the same case one of those equitable principles was emphasised by Bowen C.J. at 191-2, where he said:

"It should be mentioned however, that one of the orders made restrained conduct that was

misleading or deceptive and another two

restrained the use of certain expressions 'in

such a way as to be misleading or deceptlve'

or 'in such a way as to mislead or deceive'.

In my view, it is often undeslrable to frame interlocutory orders in such a way as to raise the very issues that will fall to be decided at the hearing. If the conduct 1s aqain called in questlon, it will usually not

be posslble to determine, on a contempt

appllcatlon, whether or not the lnterlocutory order has been ~nfrlnged (Australlan

16.

C o n s o l i d a t e d P r e s s L t d . v . Morgan ( 1 9 6 5 ) 1 1 2

C . L . R . 483: ( 1 9 6 6 ) A.L .R . 3 8 7 ) . BV l e a v i n a

~~~~ ~

~. .

t h a t q u e s t i o n t o - t h e f i n a l h e a r i n g , t h e r e

w i l l b e a f a i l u r e to meet t h e n e e d f o r u r g e n t

r e l i e f , a n d t h e p a r t y e n j o i n e d w i l l , o n t h e

f i n a l h e a r i n g , be p u t a t r i s k n o t o n l y of a

f i n a l i n j u n c t i o n b u t a l s o b e i n g o f i n

contempt . T h a t i s n o t a p u r p o s e w h i c h a n

i n t e r locu to ry o r d e r 1s meant t o serve."

T h i s p a s s a g e i s c o n c e r n e d w i t h i n t e r l o c u t o r y o r d e r s , b u t 1t

expresses a p r l n c i p l e t h a t is e q u a l l y a p p l i c a b l e t o t h e f r a m l n g

o f a f i n a l o r d e r i n s u c h a way a s t o ralse a n issue n o t d e c l d e d

a t t h e f i n a l h e a r i n g , a n d w h i c h w i l l f a l l t o b e d e c i d e d a t t h e

h e a r i n g o f a c o n t e m p t a p p l i c a t i o n i n t h e e v e n t t h a t c i r c u m s t a n c e s

coming w i t h i n t h e terms o f t h e order d o occur, so as t o p u t t h e

r e s p o n d e n t a t r i s k n o t o n l y o f a n i n j u n c t l o n I n respect of t h e

o c c u r r i n g o f t h o s e c i r cums tances b u t a l s o o f b e i n g t h e n 1 n

c o n t e m p t . T h a t is n o t a purpose which a n l n t e r l o c u t o r y o r d e r 1s

meant t o serve: i t 1s n o t a purpose a f i n a l o r d e r i s mean t t o

s e r v e e i t h e r . I n T r a d e P r a c t i c e s C o m m i s s i o n v . W a l p l a n P t y L t d

( 1 9 8 5 ) 7 A.T.P.R. 4 7 , 1 7 4 a t 4 7 , 1 7 6 P i n c u s J . t o o k t h e same v lew

o f w h a t Bowen C.J. s a i d , a s p r o v i d i n g " g u i d a n c e a s t o t h e p r o p e r

fo rm Of i n j u n c t i o n s g e n e r a l l y " . P i n c u s J. s t a t e d t h e p r l n c l p l e

i n t h e f o l l o w i n g terms:

"(I) t is u n d e s i r a b l e t o m a k e a n o r d e r a g a i n s t

t h e r e s p o n d e n t w h i c h l e a v e s u n r e s o l v e d t h e

c en t r a l i s s u e i n t h e case. F o r e x a m p l e , i n

s u c h a case a s t h i s i t would be u n o r t h o d o x

s i m p l y t o order t h a t t h e r s p o n d e n t n o t

b r e a c h s e c . 5 2 of t h e T r a d e P r a c t i c e s A c t .

T h a t w o u l d m a k e t h e c o n t e m p t p r o c e e d i n g s t h e

o c c a s i o n o n w h i c h t h e q u e s t i o n w h e t h e r t h e

r e s p o n d e n t ' s c o n d u c t h a d e v e r b r e a c h e d t h e

sec t ion w o u l d b e d e c i d e d . "

I n V l c t o r l a n Qg Market lng Board __ v . Parkwoo? E'qc3:s Pty

- L t d ( s u p r a ) a t 305 Rowen C . J . r e f e r r e d t o hls own p r o p o s ~ t l ~ > n I

l/.

t h e W o r l d statement o f C r i c k e t case. A t 306, i n t h e c o u r s e of a p p l y i n g t h a t

t h e law t o t h e case i n h a n d , h e s a i d :

"Where however i t is p o s s i b l e t o s p e c i f y t h e

c o u r s e o f c o n d u c t w h i c h is shown t o be p r ima

f a c i e i n c o n t r a v e n t i o n o f t h e l aw, i t i s

b e t t e r t o p r o s c r i b e t h a t c o n d u c t . "

T h e r e s p o n d e n t a l s o r e l i e d o n t h e p r i n c i p l e s s t a t e d i n

t h e j o i n t C o n s t r u c t i o n j u d g m e n t o Contractors f t h e F u l l C o u r t i n A u s t r a l l a n F e d e r a t i o n o f

v. A u s t r a l i a n B u i l d i n g C o n s t r u c t i o n

Employees'	a n d	B u i l d e r s	L a b o u r e r s '	F e d e r a t i o n	( 1 9 8 4 )	7 3	F.L.R.	61
a t 62:

" T h e court is a l w a y s c o n c e r n e d to e n s u r e , so

f a r a s i t can, t h a t i t s o r d e r s a r e ce r t a in

and p r o v i d e c l e a r l y for w h a t p a r t i e s a f f e c t e d

b y t h e m a r e b o u n d t o d o o r r e f r a i n f r o m

doing . "

T h e same p r i n c i p l e was s t a t e d b y Woodward J. a t p . 1 0 6 o f h i s

unreported judgment of 20 December 1985 i n Aus t ra l ian T r a n s p o r t

I n s u r a n c e P t y L t d v . Graeme P h i l l i p s R o a d T r a n s p o r t I n s u r a n c e s

P t y L t d . He s a i d :

" I t i s essent ia l t h a t t h e terms a n y o f

permanent i n j u n c t l o n a r e e x p r e s s e d a s

p r e c i s e l y a s p o s s i b l e . I t h a s b e e n s a i d i n

r e l a t i o n to m a n d a t o r y i n j u n c t i o n s t h a t ' t h e

c o u r t m u s t be c a r e f u l t o see t h a t t h e

d e f e n d a n t k n o w s e x a c t l y i n f a c t w h a t h e h a s

t o do a n d	t h i s	means n o t a s a matter o f law
b u t a s a	matter	of f a c t ' ( n e r Lord U o l o h n i n

R e d l a n d B r i c k s L t d v . Morris [ i 9 7 0 ] ~A:C. 652

a t 666). r e m l n d e r W h i l s t t h a t 1s

p a r t i c u l a r l y a p t i n t h e ca se of m a n d a t o r y

i n j u n c t i o n s , i t i s I t h i n k g e n e r a l l y

a p p l i c a b l e t o g r a n t i n g t h e of a l l

i n j u n c t i o n s , i n v i e w o f t h e s u b s t a n t i a l

p e n a l t i e s w h i c h may f o l l o w a n y b r e a c h . "

.

18.

Of c o u r s e , i n a n y p a r t i c u l a r c a s e , w h i l e g u i d e d b y t h e

a p p l l c a b l e p r i n c i p l e s , t h e C o u r t h a s a b r o a d d i s c r e t i o n t o f r a m e

a n i n ~ u n c t l o n a p p r o p r i a t e t o a l l t h e circumstances. A s F r e n c h J .

s a i d i n OD T r a n s p o r t P t y L t d . T h e v . Western A u s t r a l i a n

Governmen t Ra i lways Commiss ion (un repor t ed , 10 March 1987) :

" T h e d i s c r e t i o n o f t h e c o u r t i n f o r m u l a t i n g

t h e terms i n which a f i n a l i n ~ u n c t l o n may b e

g r a n t e d u n d e r sub-s . 8 0 ( 1 ) i s a s wide a s t h e

p h r a s e ' a s t h e court d e t e r m i n e s t o be

appropr la te ' ."

Even i n t h e c o n t e x t o f s.90AA of t h e p r e v i o u s Trade P r a c t i c e s A c t

1 9 6 5 , w h i c h precise terms of a v e r y n o m i n a t e d ( a s s.80 o f t h e p r e s e n t Act d o e s n o t ) t h e

b r o a d f o r m o f o r d e r o p e n t o t h e C o u r t , l t

was h e l d b y t h e H i g h C o u r t i n M i k a s a (NSW) P t y L t d v . F e s t i v a l

S t o r e s ( 1 9 7 2 ) 1 2 7 C.L.R. 6 1 7 t h a t h e C o u r t had a d i s c r e t i o n i n

e a c h p a r t l c u l a r case w h e t h e r o r n o t a n i n j u n c t i o n s h o u l d b e

g r a n t e d and w h e t h e r a n y i n j u n c t i o n t h a t was g r a n t e d s h o u l d b e

b r o a d o r limited i n i t s terms (see p e r B a r w i c k C . J . a t 6 3 2 , p e r

Menz ie s J . a t 6 3 9 , a n d per Walsh J . a t 6 4 9 - 5 0 ) . A t 6 5 1 G i h b s J . ,

a s h e t h e n was, sa id :

"In my o p i n i o n s.90AA d o e s n o t c o n f e r on t h e

C o u r t a d i s c r e t i o n o f a n a r b i t r a r y k i n d . I t

appea r s f r o m t h e s e c t i o n t h a t t h e o b ~ e c t of

g r a n t i n g a n i n j u n c t i o n is t o r e s t r a i n a

p e r s o n who h a s a l r e a d y e n g a g e d i n a n u n l a w f u l

p r a c t i c e f r o m a g a i n e n g a g i n g t h a t i n

p rac t ice . To require, r a t h e r t h a n permit ,

t h e C o u r t t o g r a n t a n i n j u n c t i o n once t h e

c o n d l t i o n p r e c e d e n t t o i t s g r a n t h a d b e e n

e s t a b l i s h e d w o u l d d e n y t h e C o u r t t h e p o w e r t o

a d a p t t h e r e m e d y t o t h e n e e d s o f t h e case a n d

w o u l d l e a i n J u n c t i o n t o i n j u s t i c e : m o r e o v e r , a n

1s 1 n l t s n a t u r e a d i s c r e t i o n a r y

r e m e d y . S l n c e t h e d i s c r e t i o n i s c o n f e r r e d o n

a court a n d is t o be exercised i n p r o c e e d ~ n g s

I n t e r p a r t e s , i t m u s t h e c o n c l u d e d , w h e n

t h e r e 1s n o I n d i c a L i n n I n t h e A r t 1 , ' t l , *

c o n t r a r y ,	t h a t	i t	15	L o	he	P h - t - r l ~ l f d
i u d i c i a l l y . "

.

.. 19 .

I f I were t o make a n o r d e r i n t h e f o r m s o u g h t b y t h e

a p p l i c a n t , t h e central issue i n a p r o c e e d i n g f o r c o n t e m p t , i f a n

a l l e g e d b r e a c h were d u e t o t h e r e c o n s t i t u t i o n o f A u s t r a l i a n

concentrate t o t e n d e g r e e s B r i x , w o u l d b e a n i s s u e u n r e s o l v e d b y

t h e present case. F u r t h e r m o r e , t h e r e s p o n d e n t a r g u e s , i t would

be d i f f i c u l t f o r t h e respondent to know wha t i t h a s t o d o a s a

matter o f f a c t i f i t assumes t h e law r e q u i r e s a s t a t e m e n t a b o u t

t h e percentage o f t h e ~ u i c e o f oranges i n a p r o d u c t c o n t a i n i n g

r e c o n s t i t u t e d orange ~ u i c e to b e C o n s t r u e d a s r e f e r r i n g , n o t t o a

c o m p o s i t i o n a l norm, b u t t o t h e p a r t i c u l a r b a t c h o f o r a n g e ~ u l c e

f r o m w h i c h a p p l i c a n t ' s t h e p a r t i c u l a r c o n c e n t r a t e u s e d was m a d e . T h e

e x p e r t , D r . C h a n d l e r , m a d e i t c lear t h e r e s p o n d e n t

would h a v e t o r e c o n s t i t u t e a c c o r d i n g t o i t s s u p p l i e r ' s

d i r e c t i o n s , a n d n o t a c c o r d i n g t o some c o n t i n u o u s p rocess of

R . S . K . a n a l y s e s . D r . C h a n d l e r a c k n o w l e d g e d t h e R.S.K. t es t s were

n o t s u i t a b l e f o r s u c h a use. B u t how c o u l d t h e r e s p o n d e n t h e n

m a k e c e r t a i n , i t a s k s , t o t h e s t r i n g e n t d e g r e e r e q u i s i t e f o r

a c t i o n t o c o m p l y w i t h a n i n ~ u n c t i o n , t h a t a n A u s t r a l i a n s u p p l i e r ,

w h o h a d according n e v e r to t h e a t t e m p t e d b e f o r e t o p r o d u c e c o n c e n t r a t e e x c e p t

p r e v a i l i n g p rac t ice , h a d n o t m i s i n f o r m e d i t ?

Or, a l t e r n a t i v e l y , t h a t i ts b l e n d i n g o p e r a t i o n s or o t h e r measures

l e f t a s u f f i c i e n t margin f o r error? I n t h e case o f a f o r e i g n

s u p p l i e r , t h e r e is t h e q u e s t i o n w h e t h e r t h e b r e a c h e s p r o v e d a r e

enough t o s w a y t h e d i s c r e t i o n o f t h e C o u r t t o m a k e t h e o r d e r a s

a s k e d d e s p i t e v e r i f i c a t i o n . t h e r s p o n d e n t ' s o b v i o u s l y g r e a t p r o b l e m of

D r . C h a n d l e r t h o u g h t a much r e d u c e d set of t es t s ,

t h o u q h n o t a d u l t e r a t i o n , c n c l u s i v e of t h e p r o d u c t ' s f r e e d n n Frov a n v

w o u l d be a p r a c t i c a l m e a s u r e of q u a l i t y con t ro l ;

.

.* 20.

b u t , h o w e v e r p r a c t i c a l i t m l g h t be t o a d o p t h i s suggestion, I f a n

i n j u n c t i o n i s s u e s i n abso lu te terms, p u r s u i t of a "practical"

c o u r s e w o u l d n o t p r o v i d e f o r t h e r e s p o n d e n t a s a f e b r i d g e o v e r

t h e c h a s m of c o n t e m p t .

T h e a p p l i c a n t u r g e d t h a t s u p p l i e r s o f c o n c e n t r a t e w o u l d

h a v e t o p r o v i d e b e t t e r i n f o r m a t i o n . I t w a s a d m i t t e d t h a t

A u s t r a l i a n c o c e n t r a t o r s d o n o t p r e s e n t l y conduct t h e i r

o p e r a t i o n s so a s t o be a b l e t o s u p p l y , n o r do t h e y a t t e m p t t o do

so, t h e i n f o r m a t i o n r e q u i r e d . B u t I t was s a i d t h a t t h e y c o u l d

c h a n g e t h e i r w a y s , t h o u g h a t some e x p e n s e ( v e r y c o n s i d e r a b l e

e x p e n s e a c c o r d i n g t o p r o d u c e r w i t n e s s e s ) , p r e s s u r e i f were

b r o u g h t t o b e a r o n them. I do n o t t h i n k i t would be a p r o p e r use

o f t h e c a t e g o r y C o u r t ' s i n j u n c t i v e p o w e r , g r o u n d e d u p o n a p a r t i c u l a r

o f b r e a c h , a s p l e a d e d i n t h e S t a t e m e n t o f C l a l m , t o

d e p l o y i t t o p u t p r e s s u r e u p o n p a r t i e s o t h e r t h a n t h e r e s p o n d e n t

( t h e c o n c e n t r a t o r s ) i n o r d e r t o p r e v e n t p o s s i b l e a b u s e s o f a

d i f f e r e n t k i n d . E s p e c i a l l y i s t h a t so when I do n o t know how

l i k e l y i t is t h e p o s s i b l e a b u s e s w i l l a r l s e , when a c o n s e q u e n c e

wou ld be t o r e q u i r e t h e r e s p o n d e n t t o d e a l w i t h i t s s u p p l i e r s o n

p e r h a p s u n i q u e l y c o m p e t i t o r s , n f a v o u r a b l e terms compared w i t h l t s

a n d when t h e e v i d e n c e is t h e w h o l e p r o b l e m o f t h e

p r a c t i c e s of t h e c o n c e n t r a t o r s h a s b e e n u n d e r r e v l e w b y t h e

N a t i o n a l H e a l t h a n d M e d i c a l R e s e a r c h C o u n c i l for some time a n d 1s

e x p e c t e d i n t h e n e a r f u t u r e t o be remedled b y r e g u l a t i o n . T h e

object t h e a p p l i c a n t seeks t o s e r v e ~n r e s p e c t of t h e r e f o r m of

t h e i n d u s t r y may be a v e r y d e s l r a b l e g o a l , b u t t h e C o u r t s h o u l d

n o t r u n a h e a d o f j u s t i c e .

.. .

^.

L l .

Against these considerations, the applicant makes

several points. It says the respondent would not qulte he In an

uniquely unfavourable position, since some other companies have

consented to orders in similar terms: but the circumstances of

those cases may have been qulte dlfferent, and ln any case the orders were not the subject of debate but were made by consent. It was not shown they would have any relevance to the clear problem the respondent would have If forced to seek concentrate that would accord with reconstitutlon specificatlons whlch other purchasers do not require and upon whlch most suppliers are not

in a position to supply. The evldence showed that producers

(including a cooperative with 2 7 % of the Australlan ~ u i c e market)

would find it quite uneconomic to meet the requirements to enable particular original batch of juice - qulte uneconomlc, that IS, In the absence of a regulatlon compelling their competltors to do the same.

them to guarantee the respondent the lnformation to enable their

concentrate to be reconstltuted, not to the standard ten degrees

Then it was said the applicant would not prosecute

unreasonably in the event of unavoldable breach of an Injunction, and that, if it did, the respondent could put the facts excusing it before the Court. Counsel asserted the Court would he

excusing a breach of the law ln advance 1f it dld not issue an in~unction in the form sought. Counsel seemed almost to suggest that to refraln from grantlng thls remedy would be to offer the respondent something 1n the nature of s n ~ndulqence.

.I .

L L .

I think there 1s more polemic than reason to such an

approach. The Court does not impose the heavy obllgation of an

injunction upon a party with the intention that i t may be

breached with impunity, whether because of leniency or the exercise of reasonable dlscretion, by the appllcant or by the Court. An order is intended to be obeyed, and there 1s no such defence to proceedings for contempt as reasonable conduct: McNair Anderson Associates pty Ltd v. Hinch (1985) V.R. 309. Nor would the failure of an injunction to issue afford any defence, in a case actually involving a breach of the law, to independent

proceedings in respect of that breach. Where the postulated

breach would be different in kind from any breach which led to the injunctlon proceedings, it may be most appropriate that it be established in independent proceedings.

When the evidence was re-opened, the applicant sought to

strengthen its case by reference to other alleged breaches than

those pleaded. It appeared that the respondent was, in 1984,

prosecuted by Ballarat City Council for an offence of

adulteration of juice, but that prosecution was wlthdrawn

following some debate about the correct interpretation of the

analyses upon which it had been based. It also appeared that at some unspecified time prior to the engagement of Mr. Sainsbury as managing director, the respondent had incurred nlne convictions in N.S.W., but these all arose out of a partlcular prosecution in respect of the addition to products of a stablllzer - a quite different matter from the present problem. Flnally, lt appeared that durlng the pendency of the present proceedlnq the respondent

was convicted at Aankstown Court I n respect . > f a d+'cmc'd sa l t : 3,f

I. .

23.

o r a n g e j u i c e w h i c h d o e s appear t o h a v e i n v o l v e d c o n d u c t similar

t o t h a t w h i c h led to t h e p r e s e n t case, i n r e s p e c t o f a similar

p r o d u c t . B e a r i n g m i n d t h e scale t h e r e s p o n d e n t ' s o f

o p e r a t i o n s i n t h e A u s t r a l i a n market, a n d a l s o a s a n exporter o f

o r a n g e j u i c e p r o d u c t s , I d o n o t regard t h i s record a s o n e w h i c h

s h o u l d lead me to draw p a r t i c u l a r l y a d v e r s e c o n c l u s l o n s a b o u t t h e

r e s p o n d e n t .	T	h	e	b r e a c h e s	a l leged	a n d	p r o v e d	f u r n i s h	a	g r o u n d	f o r
t h e	i s s u e ,

t h e i n j u n c t i o n C o u r t ' s i n d i s c r e t i o n , a p p r o p r i a t e a o f

t o r e s t r a i n c o n d u c t o f t h e k i n d e s t a b l i s h e d .

I n a n appropr ia te case, t h e C o u r t s h o u l d n o t b e deterred

b y a r e s p o n d e n t ' s d i f f i c u l t i e s o f c o m p l i a n c e w i t h a p r o p e r order.

B u t t o make t h e i n j u n c t i o n s o u g h t w o u l d be t o t r a i n t h e h e a v y

g u n s o f c i r c u m s t a n c e s , t h e law u p o n t h e r e s p o n d e n t . H a v i n g regard t o a l l o f t h e

I do n o t t h i n k t h a t w o u l d b e t h e r i g h t w a y i n

w h i c h t o e x e r c i s e my d i s c r e t l o n i n t h i s case. T h e a p p r o p r i a t e

i n j u n c t i o n is o n e designed to p r o t e c t t h e p u b l i c a g a l n s t t h e sor t

o f b r e a c h n u m b e r w h i c h h a s b e e n s h o w n t o h a v e o c c u r r e d o n a l i m i t e d

o f o c c a s i o n s i n t h e c o u r s e o f l a r g e - s c a l e o p e r a t i o n s ,

w i t h o u t a t t h e same time e x p o s i n g t h e r e s p o n d e n t t o t h e risk of

f i n d i n g i t s e l f i n c o n t e m p t o f c o u r t b e c a u s e o f a d i f f e r e n t

problem a l t o g e t h e r , t h e problem c r e a t e d b y a p r a c t i c e i n t h e

o r a n g e j u i c e c o n c e n t r a t i o n i n d u s t r y i n A u s t r a l i a a b o u t w h i c h

exper t o p i n i o n d i f f e r s b u t w h i c h is i n a n y case l i k e l y v e r y s o o n

t o be r a d i c a l l y a f f e c t e d b y new r e g u l a t i o n s .

I n d e t e r m i n i n g t h e f o r m w h i c h t h e i n ~ u n c t i o n s h o u l d

t a k e , I h a v e been i n f l u e n c e d b y t h e f a c t t h a t b o t h Mr. S a i n s h u r y

d n d D r . C h a n d l e r a q r e e d on t h e p r o p o s i t i o n t h a t t h e r r spon<. len t

2 4 .

s h o u l d r e c o n s t i t u t e o r a n g e ~ u l c e on t h e b a s i s o f l n f o r m a t i o n

o b t a i n e d f r o m t h e s u p p l i e r s o f t h e c o n c e n t r a t e I t u s e s . I accept

Dr. C h a n d l e r ' s e v i d e n c e t h a t R.S.K. tests a r e h l g h l y r e l i a b l e

( t h o u g h some o f t h e p r e c i s e v a l u e s r e q u i s i t e f o r t h e i r b e s t u s e

i n A u s t r a l i a h a v e b e e n u n d e r e v i e w a n d may n o t y e t h a v e b e e n

f i n a l l y d e t e r m i n e d ) , b u t a r e n o t a p p r o p r i a t e a s a t o o l f o r

q u a l i t y c o n t r o l . I n w r i t t e n s u b m i s s l o n s , t o o , t h e a p p l l c a n t

a c c e p t e d t h a t t h e r e s p o n d e n t m u s t t r u s t I t s s u p p l l e r s . N e i t h e r

p a r t y was a b l e t o s u g g e s t a f o r m o f o r d e r r e q u i r i n q some

p a r t i c u l a r se t o f tests t o be p e r f o r m e d r e g u l a r l y a s t h e m e a n s o f

e n s u r i n g i n pract ical terms t h e a u t h e n t i c i t y o f t h e p r o d u c t .

I propose t o order t h a t t h e r e s p o n d e n t be r e s t r a i n e d

f r o m r e p r e s e n t i n g i n t rade or commerce t h a t p r o d u c t l a b e l l e d a s

or as c e r t a i n p e r c e n t a g e o f c o n t a i n i n g o r a n g e f r u i t ~ u i c e a n d s u p p l i e d b y i t c o n t a i n s a

t h e j u i c e o f o r a n g e s u n l e s s :

i t s h a l l h a v e d i l i g e n t l y o b t a l n e d f r o m

e a c h s u p p l i e r o f c o n c e n t r a t e u s e d i n t h e

m a n u f a c t u r e o f t h e o r a n g e f r u i t j u i c e t h e

most a c c u r a t e a n d u p - t o - d a t e i n f o r m a t i o n

a v a i l a b l e f r o m t h a t s u p p l i e r o n t h e basis

w h i c h q u a n t i t y o f t o c a l c u l a t e t h correct

o f r e c o n s t i t u t e s l n g l e s t r e n g t h o r a n g e j u i c e water r e q u i r e d t o

f r o m e a c h c o n t a i n e r c o o f c e n t r a t e

s u p p l i e d b y t h a t s u p p l i e r : a n d

i t r e c o n s t l t u t e d h a v e s h a l l a l l

c o n c e n t r a t e u s e d i n t h e p r o d u c t o n t h e

b a s i s o f t h e i n f o r m a t l o n so o b t a i n e d ,

s a v e o n l y f o r t h e c o r r e c t i o n o f a n y error

d e t e c t e d i n t h a t i n f o r m a t i o n , a n d so t h a t

t h e s t r e n g t h o f t h e p r o d u c t w o u l d be n o t

l e ss t h a n t h e s t r e n g t h s t a t e d o n t h e

r e s p o n d e n t ' s l a b e l .

I s h a l l s t a n d t h e m a t t e r over f n r a short t lmc to e n a h l e

counsel t o p u t a n y f u r t h e r s u b r n ~ s s i o n a s tO the d r s f t l r l a tnf t h e

L . *

C. -.

25.

p r o p o s e d o r d e r , a n d o t h e r d e t a i l s s u c h a s t h e d a t e when I t s h o u l d

come i n t o e f f e c t . I note a l so t h a t counsel for t h e a p p l i c a n t

w i s h e d t o p u t h i s s u b m i s s i o n s a s t o costs a f t e r my d e l l v e r y of

t h e s e reasons, a n d I s h a l l h e a r counsel o n t h a t m a t t e r a l so .

I c e r t i f y t h a t t h i s a n d t h e

p r e c e d i n g t w e n t y - f o u r ( 2 4 )

pages are a true c o p y of t h e

Reasons for J u d g m e n t h e r e i n of

h i s Honour Mr. J u s t i c e

B u r c h e t t .

Associate

Da ted : May, 19 1987.

C o u n s e l for t h e A p p l i c a n t : Mr. B.N. C o l l i n s

S o l i c i t o r s f o r t h e A p p l i c a n t :	A u s t r a l i a n	Government
S o l i c i t o r

Counse l f o r t h e R e s p o n d e n t : Mr. J . C . Campbe l l

S o l i c i t o r f o r t h e R e s p o n d e n t : Mr. I . E . D u f f i e l d

Dates o f h e a r i n g : 1 9 8 5 , J u n e 2 8 2 7 , 4

O c t o b e r 1 9 8 5 , 8 , 19

December	1985,	2 2 ,	2 3	May
1986.