Lanhai Pty Ltd v 7-Eleven Stores Pty Ltd

Lanhai Pty Ltd, the franchisor of a franchisee, applied to the Federal Court of Australia for a mandatory injunction against 7-Eleven Stores Pty Ltd, the franchisee, to maintain a lease with a third party and to restrain termination of the franchise agreement. Lanhai also sought interlocutory and permanent injunctive relief for alleged contravention of section 18 of the Australian Consumer Law (ACL) concerning misleading or deceptive conduct.

The court was required to determine the principles to be applied in assessing the application for a mandatory injunction, particularly whether the balance of convenience favoured retention of the status quo. Additionally, the court had to consider whether interlocutory and permanent injunctive relief was available for the alleged contravention of section 18 of the ACL.

The court found that the principles for assessing an application for a mandatory injunction were well-established. It held that the balance of convenience favoured retention of the status quo until the final determination of the proceeding. The court found that the plaintiff had made out a strong case for interlocutory and permanent injunctive relief in relation to the alleged contravention of section 18 of the ACL. The court granted the application for a mandatory injunction and interlocutory injunctive relief.

The court ordered that 7-Eleven Stores Pty Ltd was to maintain the lease with the third party and restrain termination of the franchise agreement. The court also granted an interlocutory injunction preventing 7-Eleven Stores Pty Ltd from contravening section 18 of the ACL.