Hub Ventures Pty Ltd v Zig Zag Hub Pty Ltd

Hub Ventures Pty Ltd (the applicant) sought urgent interlocutory relief against Zig Zag Hub Pty Ltd (the respondent) in the Federal Court of Australia. The dispute concerned alleged breaches of a franchise agreement, with the applicant seeking to restrain the respondent from terminating the agreement and from taking steps to enforce certain alleged breaches. The applicant also sought an order for specific performance of the agreement.

The primary legal issues before the Court were whether the applicant had established a strong prima facie case that the respondent had breached the franchise agreement by failing to meet certain performance standards and whether the respondent was entitled to terminate the agreement on that basis. Further, the Court had to consider whether the applicant had established a strong prima facie case for specific performance of the agreement, particularly in light of the ongoing nature of the contractual obligations.

Justice Kate Doherty considered the principles governing interlocutory injunctions and specific performance. Her Honour noted that for an interlocutory injunction, the applicant must demonstrate a strong prima facie case or a serious question to be tried, with the balance of convenience favouring the grant of the injunction. Regarding specific performance, the Court examined whether the obligations were of a personal nature or capable of being supervised by the court, and whether damages would be an adequate remedy. The Court found that the applicant had not established a strong prima facie case for the relief sought, particularly concerning the alleged breaches and the availability of specific performance for ongoing contractual obligations.

Consequently, the Court dismissed the application for interlocutory relief.