McDonald's Australia Limited v Transport Infrastructure Development Corporation (No 2)

McDonald's Australia Limited sought an injunction against the Transport Infrastructure Development Corporation to prevent the construction of a McDonald's franchise on land adjacent to the M4 motorway in western Sydney. The case was heard in the Supreme Court of New South Wales. The Applicant argued that the Respondent's construction would cause confusion among customers and damage its reputation, as well as breaching the parties' franchise agreement. The Respondent claimed the Applicant had no standing to seek the injunction and that the construction would not cause any harm.

The court considered whether McDonald's Australia had the legal standing to seek the injunction and whether the construction of the franchise would cause harm to the Applicant's business. The court held that the Applicant had standing as the franchise agreement gave it proprietary rights in the area. Regarding the harm to the Applicant's business, the court found that the construction would not cause any significant harm to the Applicant's reputation or business.

The Supreme Court of New South Wales found in favour of McDonald's Australia and granted the injunction sought. The court ordered that the Respondent pay the Applicant's costs of the proceedings and the costs of the Applicant's notice of motion. The court held that the Applicant had proprietary rights in the area and that the construction of the franchise would not cause any significant harm to the Applicant's business. The court also found that the Respondent had no defence to the Applicant's claim for an injunction.