Led Builders Pty Ltd v Eagle Homes Pty Ltd

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DISCOVERY AND INTERROGATORIES - Discovery - infringement of copyright previously declared - alternative remedies of damages or an account of respondent's profits remaining to be determined - time by which applicant must elect between remedies - whether applicant entitled to discovery of respondent's documents relating to its overheads, to enable applicant to make an "informed" election.

COPYRIGHT - Remedies for Infringement - infringement previously declared - alternative remedies of damages or an account of respondent's profits remaining to be determined - election between remedies - whether applicant entitled to defer election (a) until after further reasons for judgment delivered, (b) until after further hearing, (c) until after discovery by respondent, or (d) at all - whether respondent must discover documents relating to its overheads so that applicant can make "informed" election.

Copyright Act 1968 s 115

Betts v Neilson and Betts v De Vitre (1868) LR 3 Ch App 429 Weingarten Bros v Charles Bayer & Co (1905) 22 RPC 341
United Australia Ltd v Barclays Ltd [1941] AC 1
Thornton Hall Manufacturing Ltd v Shanton Apparel Ltd [1989] 3 NZLR 304 (CA)
Minnesota Mining & Manufacturing Co v Colin Jeffries Pty Ltd (1992) 37 FCR 294
Gentry Homes Pty Ltd v Diamond Homes Pty Ltd (1993) AIPC 91-008
Island Records Ltd v Tring International Plc [1996] 1 WLR 1256
Tang Man Sit v Capacious Investments Ltd [1996] 2 WLR 192
Brugger v Medicaid [1996] FSR 362
Dart Industries Inc v Decor Corporation Pty Ltd (1993) 179 CLR 101
Neilson v Betts (1871) LR 5 HL 1
De Vitre v Betts (1873) LR 6 HL 319

LED BUILDERS PTY LTD v EAGLE HOMES PTY LTD

No NG 817 of 1993
No NG 862 of 1994

Lindgren J
Sydney
13 November 1996

IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY )        No NG 817 of 1993
GENERAL DIVISION                 )        No NG 862 of 1994

BETWEEN:

LED BUILDERS PTY LTD (ACN 002 351
957)
  Applicant

AND:

EAGLE HOMES PTY LTD (ACN 002 800 115)
  Respondent

CORAM:Lindgren J

PLACE:Sydney

DATE:13 November 1996

MINUTE OF ORDERS

THE COURT ORDERS THAT:

  1. The proceeding be stood over to Friday 15 November 1996 at 9.30 am for the making of orders, including orders as to costs.

  1. By 5.00 pm on Thursday 14 November 1996, the parties provide to the Associate to Lindgren J agreed form of short minutes of orders to be made, or if agreement has not by then been reached, the forms of short minutes of orders for which they will respectively contend.

NOTE:     Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY )        No NG 817 of 1993
GENERAL DIVISION                 )        No NG 862 of 1994

BETWEEN:

LED BUILDERS PTY LTD (ACN 002 351 957)
  Applicant

AND:

EAGLE HOMES PTY LTD (ACN 002 800 115)
  Respondent

CORAM:Lindgren J

PLACE:Sydney

DATE:13 November 1996

REASONS FOR JUDGMENT (No 3)

GENERAL…

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Details
Case
[1996] FCA 972
Decision Date

CaseChat Overview and Summary

The case of Led Builders Pty Ltd v Eagle Homes Pty Ltd involved a dispute between two home builders over copyright infringement. Led Builders (LED) alleged that Eagle Homes (Eagle) infringed its copyright in certain plans of project homes. The Federal Court had previously found infringement established and granted declaratory and injunctive relief. The outstanding issue was the quantum of monetary relief to be awarded to LED, either damages or an account of profits. LED sought discovery of Eagle's documents relating to its overheads to enable an "informed" election between the two remedies. The court had to determine whether LED was entitled to defer its election until after further reasons for judgment were delivered, after a further hearing, or after discovery by Eagle.

The court considered authorities which held that a copyright owner could not be required to elect between damages and an account of profits before it had the benefit of discovery on all issues and had a fair opportunity to make an informed choice. However, the court also noted that an election should not be unreasonably delayed so as to prejudice the defendant. The court held that while LED was entitled to defer its election until it had the necessary information about Eagle's overheads, it was not entitled to defer its election until after reasons for judgment were delivered. The court ordered the proceeding to be listed again for further submissions on the form of the order to be made, inspection of documents to be discovered, and a time for LED to make its election between damages and an account of profits.

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