Havmor Ice Cream Ltd v Honest the Snack Shack Pty Ltd

Havmor Ice Cream Ltd (the applicant) sought an interlocutory injunction against Honest the Snack Shack Pty Ltd (the respondent) to restrain alleged breaches of a franchise agreement. The dispute concerned the respondent's alleged failure to comply with certain provisions of the franchise agreement, including those relating to the supply of ice cream and other products, and the use of intellectual property. The application was heard in the Supreme Court of Victoria.

The primary legal issues before the Court were whether the applicant had established a strong prima facie case of breach of contract, whether the balance of convenience favoured the grant of an interlocutory injunction, and whether damages would be an adequate remedy for the applicant. The Court was required to consider the nature of the alleged breaches and the potential harm to the applicant's business and brand reputation if the injunction were not granted.

Justice Wilson considered the evidence presented by both parties regarding the alleged breaches. The Court applied the principles governing the grant of interlocutory injunctions, which require the applicant to demonstrate a serious question to be tried and that the balance of convenience lies in favour of granting the injunction. The Court also assessed whether monetary damages would be sufficient to compensate the applicant for any loss suffered. The Court found that the applicant had not established a strong enough prima facie case to warrant the grant of an interlocutory injunction at this stage, and that damages might be an adequate remedy.

The Court therefore dismissed the application for an interlocutory injunction.