Krishnan v Estee Lauder Pty Ltd (No 2)

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FEDERAL COURT OF AUSTRALIA

Krishnan v Estee Lauder Pty Ltd (No 2) [2022] FCA 274

File number: WAD 156 of 2021
Judgment of: BANKS-SMITH J
Date of judgment: 24 February 2022
Date of publication of reasons: 24 March 2022
Catchwords: PRACTICE AND PROCEDURE - application to hear interlocutory injunction application ex parte - where no urgency - where no risk that notice to respondent would compromise proceedings - where relief sought had potentially far-reaching consequences for respondent - application dismissed - applicant directed to serve respondent
Cases cited: Krishnan v Estee Lauder Pty Ltd [2022] FCA 273
Division: General Division
Registry: Western Australia
National Practice Area: Commercial and Corporations
Sub-area: Regulator and Consumer Protection
Number of paragraphs: 13
Date of hearing: 24 February 2022
Counsel for the Applicant: The Applicant appeared in person
Counsel for the Respondent: The Respondent did not appear

ORDERS

WAD 156 of 2021
BETWEEN:

MEENAKSHI KRISHNAN

Applicant

AND:

ESTEE LAUDER PTY LTD (ACN 008 444 719)

Respondent

ORDER MADE BY:

BANKS-SMITH J

DATE OF ORDER:

24 FEBRUARY 2022

THE COURT ORDERS THAT:

1.The applicant is to serve her application for an interlocutory injunction filed 9 February 2022 and her supporting affidavit filed 17 February 2022 on the respondent by email to the respondent's solicitors forthwith.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

BANKS-SMITH J:

  1. In reasons published in Krishnan v Estee Lauder Pty Ltd [2022] FCA 273 I set out the nature of the claim brought by Ms Krishnan against the respondent (primary reasons).

  2. In short, Ms Krishnan commenced these proceedings seeking relief arising out of her purchase of certain beauty products in circumstances where the advertised ingredients did not align with the ingredients in the products purchased.

  3. The reason for the error in the description of the ingredients is explained in the primary reasons.  It arose from the transposition of product and ingredients lists for products available in the United States market to products available in the Australian market, despite the fact that a certain ingredient (benzoyl peroxide) was not an ingredient of the products available for sale in the Australian market.

  4. The respondent's evidence supported its claim that the error was rectified during the period February 2021 to July 2021.  There was no evidence that the error persisted.

  5. The proceedings were filed in June 2021.  After various case management hearings, on 7 October 2021 Ms Krishnan filed an amended application and amended statement of claim.  On 3 December 2021 the respondent filed its application for summary judgment or strike out.  The application was listed for hearing on 28 February 2022.

  6. On 17 December 2021 Ms Krishnan purported to file an application seeking injunctive relief on an ex parte basis.  There were issues with the document.  The application was eventually accepted for filing on 9 February 2022.  The application was accompanied by an affidavit in support.  There was no undertaking as to damages provided.

  7. By her interlocutory application Ms Krishnan…

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Details
Case
[2022] FCA 274
Decision Date

CaseChat Overview and Summary

In the Federal Court, the plaintiff, Ms Krishnan, sought an interlocutory injunction against Estee Lauder Pty Ltd, an Australian cosmetics company. Ms Krishnan's application for an interlocutory injunction was made without notice to Estee Lauder. The injunction sought would prohibit Estee Lauder from selling or promoting certain products. The potential consequences of the injunction, if granted, were substantial for Estee Lauder, including significant financial loss and reputational damage.

The court was required to determine whether the application for an interlocutory injunction could proceed without notice to Estee Lauder. The court considered the nature of the relief sought and the potential consequences for Estee Lauder if the injunction was granted. The court also considered whether there was any urgency or risk that notice to Estee Lauder would compromise the proceedings. Ultimately, the court found that there was no urgency and no risk that notice to Estee Lauder would compromise the proceedings. The relief sought had potentially far-reaching consequences for Estee Lauder, and the application was dismissed. The court directed Ms Krishnan to serve her application and supporting affidavit on Estee Lauder.

The court's decision was based on the principle that, generally, an interlocutory injunction should not be granted without notice to the respondent unless there are exceptional circumstances. The court found that there were no exceptional circumstances in this case, and the application was dismissed. The court directed Ms Krishnan to serve her application and supporting affidavit on Estee Lauder forthwith. The court's decision highlights the importance of considering the potential consequences of an interlocutory injunction and the need for notice to the respondent unless there are exceptional circumstances.

Orders

Orders of the court

1. The applicant is to serve her application for an interlocutory injunction filed 9 February 2022 and her supporting affidavit filed 17 February 2022 on the respondent by email to the respondent's solicitors forthwith.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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