Jerkins, Gregory Bruce v Caltex Oil (Australia) Pty Ltd

Case

[1981] FCA 202

12 Oct 1981

No judgment structure available for this case.

--

EX TEMPORE

I N THE FEDERAL COURT OF AUSTRALIA

-

-

)

)

V I C T O R I A N

DISTRICT

REGISTRY

)

VG No.

162 of

1 9 8 1

1

GENERAL DIVISION

)

I N

THE

MATTER

OF

T h e P e t r o l e u m R e t a l l

M a r k e t i n g F r a n c h i s e

Act

1980

Between:

GREGORY RRUCE JERKTNS A N D

-__.

DEBRA ANN JERKINS

Applicants

-

And:

CALTEX O I L (AUSTRALIA) PTY.

I_

LIMITED.

Respondent

Coram:

S m i t h e r s

J.

1 2 O c t o b e r 1 9 8 1

Melbourne

REASONS FOR JUDGMENT

By

a n

a p p l l c a t l o n

d a t e d

t h e

1 0 t h

d a y

of

September

1981

and

amended

on

22

Sep tember

1981

t he

app l i can t s

seek

r e l i e f

as

f o l l o w s : -

1.

An

o r d e r

p u r s u a n t

t o

s . 1 6 ( 4 )

of

t h e

P e t r o l e u m

F e t a l 1

M a r k e t l n g

F r a n c h l s e

Act

1980

( t h e Act)

t h a t

t h e n o t i c e

d a t e d

2 1 s t

d a y

of

Augus t

1981

s l g n e d

o n

b e h a l f

of

t h e

r e s p o n d e n t

a n d

s e r v e d

011

t h e a p p l i c a n t s

i n

r e l a t i o n t o

t h e

premises

known

as

C a l t e u A u t o P o r t ,

L a k e s

E n t r a n c e

2.

i n t h e

S t a t e

o f V i c t o r i a h a s n o e f f e c t .

2 .

t h e

I n

a l t e r n a t i v e

t h e y

seek

a n

o r d e r

p u r s u a n t

t o

s.17(10)

of

t h e Act

d i r e c t i n g

t h e

r e s p o n d e n t

t o

r e n e w

t h e

f r a n c h i s e

a g r e e m e n t

b e t w e e n

t h e

a p p l i c a n t s

a n d

t h e

r e s p o n d e n t

r e l a t i n g

t o

t h e

s a i d

premises.

3.

A n c i l l i a r y

Or

c o n s e q u e n t l a l

O r d e r s

a s

t h e

C o u r t

deems

f i t ,

i n c l u d i n g

i n t e r l o c u t o r y

e l i e f

a n d

a n

O r d e r

t h a t

t h e

r e s p o n d e n t ,

i t s

s e r v a n t s

a n d

a g e n t s

b e

r e s t r a i n e d

f r o m

t a k i n g

a n y

a c t i o n

i n

r e l a t i o n

t o

t h e

s a i d

n o t i c e

p e n d l n g

t h e

h e a r i n g

a n d

d e t e r m i n a t i o n

of

t h i s a p p l i c a t i o n .

T h e s e

p r o c e e d i n g s

r e l a t e

t o

a n

a g r e e m e n t

o r

a g r e e m e n t s

b e i n g

f r a n c h i s e

a g r e e m e n t s

w i t h i n

t h e

m e a n i n g

o f

t h e

Act,

m a d e

b e t w e e n

t h e

a p p l i c a n t s ,

who

a re

s e r v i c e

s t a t i o n

propr ie tors

a t L a k e s

E n t r a n c e

i n

t h e

S t a t e

o f V i c t o r i a a n d

t h e

Respondent

a

p e t r o l e u m

c o r p o r a t i o n

w h l c h

o w n s

t h e

m a r k e t i n g

premises

t h e

s u b j e c t

of

t h e

s a i d

a g r e e m e n t s .

On

10

March

1 9 7 7

t h e

second

named

a p p l i c a n t

a n d

l a t e r

t h e

f i r s t named

s l g n e d

a

f r a n c h i s e

a g r e e m e n t

w i t h

t h e

r e s p o n d e n t

c r e a t i n g

a

l i c e n c e

i n

t h e a p p l i c a n t s

l n

t h o s e

premises

f o r

a

p e r i o d o f

t w e l v e m o n t h s

b u t

s u b j e c t ,

a s

p r o v i d e d

by

c l a u s e

3 ( a )

o f

t h e

a g r e e m e n t ,

t o

d e t e r m i n a t i o n

b y

t h e

r e s p o n d e n t

a t

any

time

by

t h l r t y

d a y s

n o t i c e

i n

w r i t i n g .

By

t h e

s a i d

a g r e e m e n t

t h e

r

s p o n d e n t

g r a n t e d a n d

t h e a p p l i c a n t s a c c e p t e d

a

l icence:-

3 .

" ( a )

t o use

i n common

w i t h

L i c e n s o r

e

i t s

workmen

s e r v a n t s

a n d a g e n t s

( i )

t h e

l l c e n c e d

b u l l d i n g s

d e s c r i b e d

I n

P a r t B

o f

t h e S c h e d u l e

[ t h e r e t o ]

( i i )

l l c e n c e d

t h e

f a c i l i t i e s

m o r e

p a r t i c u l a r l y

d e s c r i b e d

i n

P a r t

C

o f

t h e

S c h e d u l e

[ t h e r e t o ]

(b)

t o h a v e

a c c e s s

o v e r

t h e

s a i d

l a n d s

d e s c r i b e d

i n P a r t A

o f

t h e

S c h e d u l e

[ t h e r e t o ]

f o r

t h e

p u r p o s e s a f o r e s a i d . "

By

c l a u s e 7

it was

p r o v l d e d

t h a t

t h e

l i c e n s e e s s h o u l d

" . . . p a y

t o

t h e

L i c e n s o r

m o n t h l y

i n

a d v a n c e

o n

t h e

f l r s t

d a y

o f

each

and

eve ry

mon th

a

r e n t a l

a t

t h e

r a t e

o f

$ 4 0 per

m o n t h

f o r

t h e

l e a s e

o f

t h e

[ g o o d w i l l

o f

t h e

b u s i n e s s

conduc ted on the

premlses

1

. . .

I t

By

c l a u s e 28

i t was

p r o v i d e d

t h a t

" T h e

L l c e n s e e

s h a l l

p a y

t o

t h e

L i c e n s o r

f o r

t h e

L i c e n c e

h e r e b y

g r a n t e d

a

l i c e n c e

fee

as

f o l l o w s : -

( a )

t h e

sum

o f

$ 4 0 0 per

m o n t h

o n

t h e

f i r s t

d a y o f e a c h a n d e v e r y m o n t h ,

t h e f i r s t

p a y m e n t

~f

n e c e s s a r y

b e

t o

a

p r o p o r t i o n a t e o n e ,

p l u s

(b)

a n

a d d i t i o n a l

sum

o n

e a c h

s u c c e e d i n g

q u a r t e r

d a y

i n

r e s p e c t

o f

p e t r o l

s u p p l i e d

i n e x c e s s

of

[ a g a l l o n a g e n o t

s t a t e d ]

. . ."

The

s a i d

a g r e e m e n t

a l s o

c o n t a i n e d

t h e

f o l l o w i n g

p r o v i s i o n s ,

n a m e l y ,

c l a u s e

3 ( b )

o f

t h e

s a i d

ag reemen t

In

t h e

f o l l o w i n g

terms :

-

" ( b )

i f

t h e

L i c e n s e e

s h a l l

c o n t l n u e

t o

u s e

t h e

s a l d

b u l l d i n g s

a n d

f a c l l i t i e s

w i t h

c o n s e n t

4 .

of

t h e

L i c e n s o r

a f t e r

t h e

s a i d

p e r i o d

o f

t w e l v e

( 1 2 ) months

he

s h a l l remain

upon

the

same

t e r m s

a n d

c o n d l t l o n s

a s

a r e

h e r e i n

c o n t a i n e d

PROVIDED

HOWEVER

THAT

t h e

L i c e n s o r

may

a t any

tlme

d e t e r m i n e

t h l s

L l c e n c e

b y

g i v i n g

30

d a y s

n o t l c e

I n

w r i t i n g

t o

t h e

L i c e n s e e a n d

t h a t

t h e L i c e n s e e

may

d e t e r m i n e

t h i s

L i c e n c e

b y

g i v l n g

t o

t h e

L i c e n s o r

n o t

l ess

t h a n

3

m o n t h s '

n o t i c e

~n

w r i t l n q

e x p l r l n g

a t

t h e e n d o f

a n y

successive

p e r l o d

o f

t w e l v e

m o n t h s

f i r s t

r e f e r r e d

t o

I n

t h i s

C l a u s e . "

C l a u s e

3 ( c )

i n

t h e

f o l l o w i n g

terms:-

"(c)

t h e

L i c e n s o r

may

d e t e r m i n e

t h e

l i c e n c e

w i t h o u t

n o t i c e

i n

t h e

v e n t

o f

n o n - p a y m e n t

of

a n y

d e b t

o w l n g

b y

t h e

L l c e n s e e

t o

t h e

L i c e n s o r

a n d

r e m a i n i n g

u n p a l d

f o r

a

p e r ~ o d

o f

s e v e n

( 7 ) d a y s

a f t e r

becomlng

due;"

Clause

20

i n t h e

f o l l o w i n g

t e r m s : -

" 2 0 .

I n

t h e

e v e n t

o f

t h e

L i c e n s e e

c o n d u c t i n g

t h e

s a i d

b u s i n e s s

f o r

l e s s

t h a n

7 7

h o u r s

I n

a n y

week

or

f o r less

t h a n C

1 h o u r s

o

n

a n y

d a y

( e x c e p t

Good

F r i d a y ,

C h r i s t m a s

Day

or

Anzac

Day)

o r

f a i l l n g

t o

c o n d u c t

t h e

s a i d

b u s i n e s s

o n

C h r i s t m a s

Day

or

Anzac

Day

d u r i n g

s u c h

o u r s

a s a re

from

tlme

t o

time

p e r m i t t e d

b y

law,

o r ,

i n

c a s e

o f

d e f a u l t

b y

t h e

L i c e n s e e

i n

p a y m e n t

of

a n y

m o n i e s

d u e

h e r e u n d e r

o r

b r e a c h

a n y

o f

o f

t h e

terms

and

c o n d i t i o n s

of

t h i s

L i c e n c e ,

o r

i f

b a n k r u p t c y

or

i n s o l v e n c y

p r o c e e d i n g s

a r e

i n s t i t u t e d

a g a i n s t

t h e

L i c e n s e e ,

o r

i f

t h e

L l c e n s e e

makes

a n y

a s s i g n m e n t

t o

a

t ru s t ee

f o r

c r e d l t o r s

or

c o m m l t s

a n y

a c t

o f

b a n k r u p t c y

o r

i f

a n y

j u d g e m e n t

o f

a n y

C o u r t

i s

g l v e n ,

or

a n y

a t t a c h m e n t

o r

g a r n l s h e e

p r o c e e d l n g s

or

e x e c u t i o n

i s

l e v i e d

o r

i n s t l t u t e d

a g a i n s t

t h e

L i c e n s e e ,

or

i f

h e

s h a l l

b e

f o u n d

g u l l t y

o f

a n y

i n d i c t a b l e

o f f e n c e ,

t h e

L i c e n s o r

may

w i t h o u t

n o t i c e

I m m e d i a t e l y

t e r m i n a t e

t h i s L l c e n c e . "

T h e

a p p l i c a n t s

h a v e

c o n d u c t e d

b u s i n e s s

a t

t h e

premises

a s from

1 9 7 7 onwards.

In

March

1 9 8 0

t h e

r e s p o n d e n t

5.

increased

the monthly rent

and

licence fee from a total of

$440 to $480. In early 1981 the respondent removed from the premlses a large petrol tank of 26,0001itres being part of the

licensed facilities, thereby

reducing the reserve capacity

thereof.

In July of 1981 the

representative of the respondent

informed the applicants that as from the month of May 1981 and thereforward the total monthly rent would be $530 in lieu of

$480. He requested the applicants to instruct their bank to

transfer that

amount

each

month

to

the

respondent.

The

applicants agreed to pay such increased rental and gave a cheque for $100 being the increase for May and June and gave instruction to the bank as required and thereby have paid and provided payment of such increased additional rent as from July 1981.

By letter dated

21 August 1981 the respondent

notified the applicants, as follows:-

“We give notice that you are in breach

of

the

above mentioned licence agreement in

the following

respects:

(a) In

breach of Clause 12, you have, wlthout

being licensed by us, made on

or to the land

referred to in that Clause an addition

consisting of a four square pre fabricated

building.

(b)

In breach of

Clause 10, you have used a

licensed

building,

namely

the

dwelling

house,

for

a purpose

other

than

the

operation of a Petrol

Service

Statlon

Garage, in that you have placed a third party in occuption of the dwelling house and that third party is presently in occupation of It.

6.

H e n c e ,

p u r s u a n t

t o

C l a u s e

3 ( a )

a n d

3 ( b )

o f

t h e

above

ment ioned

agreement ,

we

HEREBY

DETERMINE

y o u r

l i c e n c e

a n d

a d v l s e

y o u

of

30

d a y s

n o t i c e

e f f e c t i v e

f r o m t h e d a t e b e l o w . "

I t

1s

I n

r e s p e c t

o f

t h i s

n o t l c e

t h a t

t h e

a p p l i c a n t s

seek

r e l i e f

p u r s u a n t

t o

s .16

o r

s . 1 7 o f

t h e

Act.

By

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

t h e 1 7 t h d a y o f

September

1 9 8 1 t h e b e d i s m i s s e d p u r s u a n t

r e s p o n d e n t

seeks

a n o r d e r

t h a t

t h e a p p l i c a t i o n h e r e l n

t o

Order

2 0

r . 2 ( 1 ) o n

t h e

b a s l s t h a t

t h e

C o u r t

d o e s

n o t

h a v e

j u r i s d r c t i o n

t o

h e a r

t h e

a p p l i c a t l o n .

H e r e l n

I

r e f e r

t o

t h e

r e s p o n d e n t

company

a s

t h e

r e s p o n d e n t

a l t h o u g h

o n

t h i s

l a s t

ment ioned

mot ion

i t

i s

t h e

a p p l i c a n t .

The

p a r t i e s

s e e k ,

a t

t h i s

t a g e ,

t h a t

o n l y

t h i s

m o t l o n

be

d e a l t w l t h ,

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

t h e r e o n .

I n

r e s p e c t

o f

t h e

c l a i m

for

r e l i e f

u n d e r

s.lG

t h e

a p p l l c a n t s

m u s t

show

t h a t

t he re

was

an

agreement

whlch

was

e n t e r e d

I n t o

o n

or

a f t e r

t h e d a t e

o f

t h e commencement

o f

t h e

Act,

namely ,

19

September

1 9 8 0 .

The

on ly

way

t h e

a p p l i c a n t s

c a n

d o

t h i s

i s

t o show

t h a t

t h e r e

was

an

agreement

by

way

o f

r e n e w a l

a r i s l n g

o u t

of

t h e

r e q u e s t

f o r

t h e

i n c r e a s e

i n

r e n t

f o r

pas t

a n d

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

i n

J u l y 1 9 8 1 ,

a l l l e d

p e r h a p s

w l t h

t h e

c h a n g e

i n

t h e

l l c e n s e d

f a c i l i t i e s

f o l l o w i n g

upon

t he

r emova l

o

f

t he

26 ,000

l l t r e

t a n k .

I n

t h i s

c o n n e c t i o n

t h e

p a r t l e s

r e l i e d

upon

what

was

sard

by

Dlxon

C . J .

a n d

F u l l a g a r

J .

~n

T a l l e r m a n

&

Co.

P t y .

1 .

L t d .

v .

N a t h a n ' s

M e r c h a n d l s e

( V i c t o r i a )

P t y .

L t d .

( 1 9 5 6 )

O H

C.L.R.

93 a t p.112,

where I n respect o f

an

ag reemen t

made

o r l g l n a l l y

I n Melbourne

and

var ied

I n

S y d n e y

t h e y

s a i d : -

"There

IS

o n l y

o n e

c o n t r a c t ,

a n d

o n e

w o u l d

t h i n k

i t

c l e a r

t h a t

t h a t

c o n t r a c t

m u s t ,

~f

i t

e v e r

b e c o m e s

m a t e r l a l

t o

I n q u i r e

where

i t

was

made,

be

r e g a r d e d

a s

made

a t t h e

p l a c e

where

i t

was

o r i g i n a l l y

c o n c l u d e d .

T h e

v a r l a t i o n

a f f e c t s

t h e

c o n t e n t

o f

t h e

o b l i g a t i o n

b u t

n o t

h e

o b l l g a t r o n

i t s e l f .

The

place

where

t h e p a r t i e s

a s s u m e d

t h a t

o b l l g a t i o n ,

a n d

b e c a m e

b o u n d

t o n e

a n o t h e r ,

is

t h e place

w h e r e

t h e l r c o n t r a c t

was

r e a l l y

made."

Bu t

I t

IS

c l e a r

t h a t

when

t h e

I n q u i r y

is

n o t

w h e r e

t h e

c o n t r a c t

1s made,

bu t

when

t h e

c o n t r a c t

c o n t a i n l n g

a l l

o f

t h e

II

terms

i n t r o d u c e d

b

y

t h e

v a r i a t i o n

w a s

m a d e ,

I t

wou ld

no t

seem

n e c e s s a r i l y

i n c o n s l s t e n t

w i t h

p a s s a g e

e

q u o t e d

t h a t

it

s h o u l d

b e

s a i d

t h a t

t h e

c o n t r a c t

w a s

e n t e r e d

i n t o

when

t h e

p a r t i e s

e n t e r e d

i n t o

t h e

terms

which

became

binding

upon

them

a t t h e

time

o f

t h e

v a r i a t i o n

a n d

n o t

b e f o r e .

The

i n q u i r y

i s

a

d i f f e r e n t

o n e

f r o m

t h a t

u n d e r

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

I n

T a l l e r m a n ' s

+

-

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

well

be an

issue

a s

t o w h e t h e r

o r n o t whether

t he re

was

an

agreement

by

way

o f

r enewa l

and ,

i f

so ,

i t was

made

by

way

o f

v a r i a t i o n

o f

t h e

o r l g i n a :

c o n t r a c t

i n

J u l y

1 9 8 1 ,

so

t h a t

t h e

terms

o f

t h e

a c t u a l

c o n t r a c t

w h i c h

e x i s t e d

o n

1 0

S e p t e m b e r

1 9 8 1

c o n t a l n e d

some

terms which were

e n t e r e d

l n t o

i n

1 9 7 8

a f t e r

t h e

e x p i r a t i o n

o

f

t h e

f l r s t

twe lve

mon

ths

o f

t he

ag reemen t

and

some terms which

were

e n t e r e d i n t o I n J u l y

1 9 8 1 .

If

t h i s

issue

were

d e t e r m l n e d

i n

f a v o u r

o f

t h e

appllcants then the appllcants would be able to show that the licence under whlch they were holding on 10 September 1981 was a llcence which was a franchlse agreement which had been entered into subsequent to the commencement of the operation of the Act. In thls connection, of course, the definition of

renewal agreement In sub-sectlon

4 of s . 3 is relevant and also

the deflnltion of agreement in sub-sectlon 1 of s . 3 .

If there were such a

new agreement by way of renewal

the question would arise whether the notice of 21 August 1981

.

was a notlce

of termination which, even

if not a notice of

termination under clause 20 of the relevant agreement, was

nevertheless effectlve as a notice of terminatlon under s.16

of the Act. If it were, then the remaining issue would be the

question of whether the applicants were entitled to relief on

grounds of justice

and equity.

If there were no new agreement made In

July 1981, no

renewal of the agreement, then s.16 does not apply to the

franchise agreement existing between the parties on

10

September 1981.

But according to its terms

s.17 does apply.

It was said that s.17 does not operate where an

agreement has

been termlnated and that this agreement was termlnated. This was based on the notron that wrth respect to an agreement to which s.16 applies and which has been terminated pursuant to thst sectlon, and in respect of whlch relief under that section had been refused, s.17 would not operate to require

renewal of the licence agreement.

This 1 s no doubt correct,

but it is to be noted that

determination pursuant to a notice of determination of a periodic licence OK licence for an indefinlte period subject to determlnation by notice of specified length is not one of

the grounds of terminatlon

specified in s.16.

Sectron 16 does not provide for a notice on the ground of the nature of the notice to quit having been glven. Yet agreements for perlods for periodic licences, being

necessarily of uncertain duration but determinable on notice of some speclfied duratlon, and agreements for indefinite

duration slmilarly determinable

on notice, are permissible

under the Act, for Instance, by way of renewal

- see s.13,

sub-sectlon (1).

A licence for three years certain wlth provrsron

for

later determination thereafter on notice would comply with

s.13 sub-section (1).

Also, section 16 would apply to such an

agreeyent. Accordingly, if determination by notice

were

regarded as termination within the meaning of s.16, such an agreement could never be brought to an end unless one of the particular circumstances specifled In s.16 arose. That would be a completely unacceptable sltuatlon. It would be quite

lncompatible wlth the scheme

of the Act and the apparent

objectives of the Act if such a licence agreement could only

10.

b e

b r o u g h t

t o

a

n

e n d

u n d e r

s . 1 6 .

I f

s u c h

a n

a g r e e m e n t

1s

b r o u g h t

t o

a n

e n d

by

t h e

s p e c l f i e d

n o t l c e ,

it

is my

v iew

t h a t

t h e

a g r e e m e n t

h a s

n o t

b e e n

t e r m l n a t e d

w i t h i n

t h e

m e a n l n g

o f

t h a t

term

i n

s . 1 6 ,

i t

h a s

e x p l r e d

p u r s u a n t

t o

I ts own terms.

As a n

e x p i r e d

l i c e n c e

agreement

s .17

would

opera te

upon

i t

a c c o r d i n g

t o

Its terms.

I n t h l s case it would

be

open

t o

t h e

r e s p o n d e n t

t o

a r g u e t h a t

t h e n o t l c e o f

2 1

A u g u s t d i d

t e r m i n a t e

t h e

ag reemen t

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

so

t h a t

i t

d l d

n o t

e x p l r e

b u t

was

t e r m i n a t e d

t o

I ts own terms.

If

t h a t were so,

s . 1 7 would

no t

operate upon

t h e

ag reemen t .

T h i s

i s

a r g u a b l e ,

b u t

o n

t h e

f a c e

o

f

t h e

n o t i c e

o

f

21

August

1981

t h e r e

is

much

t o

b e

s a i d

f o r

t h e

v i e w

t h a t

a l t h o u g h

t h e

g i v i n g

o f

i t

i s

s a i d

t o

h a v e

b e e n

i n d u c e d

by

a l l e g e d

b r e a c h e s

o f

t h e

l l c e n c e

a g r e e m e n t

w h i c h

m i g h t

have

s u p p o r t e d

t e r m i n a t i o n

f o r t h w i t h

u n d e r

c lause

20

t h e r e o f ,

~t

was

d e l i b e r a t e l y

n o t

g l v e n

a s

a

n o t i c e

o f

t e r m i n a t i o n

u n d e r

c l a u s e

20

b u t

a s a

n o t i c e

o

f

d e t e r m l n a t i o n

u n d e r

c l a u s e

3 ( b ! .

T h a t

is

a

clause w h l c h

p r o v i d e s

f o r

n o t i c e

o f

d e t e r m i n a t i o n

apa r t

a l t o g e t h e r

f r o m a n y q u e s t i o n s o f b r e a c h .

I f

t h e

a l l e g e d

t e r m i n a t l o n

w e r e

b r o u g h t

a b o u t

by

n o t i c e

u n d e r

c l a u s e

3 ( b ) ,

t h e n

i n

my

v i e w

t h e

l i c e n c e

ag reemen t

was

n o t

t e r m i n a t e d

w i t h i n

t h e

m e a n i n g

o f

t h a t

term

11.

i n s . 1 6 , o p e r a t e u p o n

b u t

e x p i r e d

a c c o r d i n g

t o

I t s own terms and s.17 would

i t .

$ h e r e

i s

a

qualitative

d i f f e r e n c e

b e t w e e n

t e r m i n a t i o n

u n d e r

c l a u s e

2 0

which

would

take

e f f e c t

f o r t h w i t h

a n d

e t e r m l n a t i o n

o f

t h e

l l c e n c e

u n d e r

c l a u s e

3 ( b )

-

I n

t h e

o n e

case

t h e

r i g h t s

a n d

o b l i g a t i o n s

o f

t h e

p a r t i e s

c e a s e

f o r t h w l t h .

I n

t h e

o t h e r

t h e y

c o n t i n u e

u n t r l

t h e

i c e n c e

e x p i r e s

a t

h e

n d

of

t h e

p e r i o d

o f

t h e

n o t i c e .

I n

a

case

l i k e

t h e

p r e s e n t ,

c o n t i n u a t i o n

o f

t h e

m u t u a l

o b l i g a t i o n s

o f

t h e

pa r t i e s

f o r

30

d a y s

was

a

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

s i g n i f i c a n c e .

I

f e e l

n o

d i f f i c u l t y

i n

a d o p t i n g

t h e

v i e w

t h a t

a n

ag reemen t

i n

r e s p e c t

o

f

w h r c h

s.17

w o u l d

o t h e r w r s e

o p e r a t e

o

n

t h e

e x p r r a t i o n

t h e r e o f

1s one

on

which

i t

o p e r a t e s ,

n o t

o n l y

i f

i t

e x p i r e s

b y

t h e

x p i r a t i o n

of

a

f i x e d

t e r m ,

b u t

a l s o

w h e r e

t h e

term,

b e i n g

u n c e r t a i n

b u t

d e t e r m i n a b l e

b

y

s p e c i f i e d

n o t i c e ,

e x p r r e s

a t

t h e

e n d

o f

n o t i c e

g l v e n

a c c o r d i n g

t o

t h e

terms

o f

t h e a g r e e m e n t .

To

e x c l u d e

from

t h e

b e n e f l t s

o f

s.17

a

f r a n c h i s e

ag reemen t

of

s u c h

a

na tu re

t h a t

i t

1s of

u n c e r t a i n

d u r a t i o n

b u t

d e t e r m r n a b l e

by

a

n o t i c e

w o u l d

seem

t o

b e

s u p p o r t e d

b y

no

r e a s o n

w h i c h

o n e

c a n

t h i n k

o f

c o m p a t i b l e

w i t h

t h e

scheme

of

t h e Act

and ,

Indeed ,

i t would

seem

t o

b e

o u t

of

harmony

w i t h

-~

t h e o b j e c t s o f

t h e

Act.

I t

seems

c l e a r t h a t

s . 1 7

w o u l d

a p p l y

t o

a

n

a g r e e m e n t

f o r

a

f l x e d

term

w h i c h

e x p i r e d

b y

p e r h a p s

e v e n

a

few

d a y s

-

o n e

d a y

- a f t e r

t h e

commencement

o f

t h e Act.

T h a t

i t

s h o u l d

n o t a p p l y o n n o t l c e

t o

a n

a g r e e m e n t

o f

u n c e r t a i n

d u r a t i o n

d e t e r m l n a b l e

a n d ,

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

s u b s t a n t i a l d u r a t l o n

wou ld

be

s t r ange .

A l l

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

r a i s e

q u e s t i o n s o f

f a c t a n d

law

w h i c h a c c o r d i n g a s

t h e y

may

b e d e c i d e d

may

g o s u f f i c i e n t l y

rn

f a v o u r

o f

t h e

a p p l l c a n t s

t o

s u p p o r t

a

c l a i m

f o r

r e l i e f

under S.16

OK S.17.

T h e r e

1s

a c c o r d i n g l y

j u r i s d i c t i o n

I n

t h e

C o u r t

o

e n t e r t a i n

a n d

d e a l

w i t h

t h e

i s s u e s

so

r a l s e d .

The

a p p l i c a n t s

a l l e g e

f a c t s

w h i c h

i f

t h e y

e s t a b l i s h

them

will

b e

s u f f i c i e n t

t o e n t l t l e them

t o

r e l i e f u n d e r o n e o f

t h o s e s e c t i o n s .

A c c o r d l n g l y ,

I

m a k e

t h e

o r d e r

w h i c h

I

h a v e

a l r e a d y

I n d i c a t e d a n d d i s c u s s e d w i t h

c o u n s e l .

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