Sanctuary Cove Golf and Country Club Pty Ltd (ACN 120 308 410) v Machon

In this case, the respondent, Robert Bruce Machon, was an equity member of the appellant, Sanctuary Cove Golf and Country Club Pty Ltd. The dispute between the parties revolved around whether a term in the Club's by-laws, which prevented equity members from resigning until their share was transferred, was an unfair term under the Australian Consumer Law (Queensland). The primary issue before the court was whether the Tribunal had jurisdiction to determine that the term was an unfair term and, if so, whether the term was indeed unfair.

The court found that the Tribunal did not have jurisdiction to apply the unfair term provisions in the ACL (Qld) to the by-laws, as the relevant contract entered into by Mr Machon and the Club pre-dated the introduction of the ACL (Qld). Even if the Tribunal did have jurisdiction, the court concluded that the by-law in question was not an unfair term when viewed at the date of the contract, in view of the contract as a whole and after considering whether the term was reasonably necessary to protect the legitimate interests of the Club and its transparency. Therefore, the court held that the by-law was not an unfair term.

In light of these findings, the court allowed the Club's appeal and dismissed Mr Machon's cross-appeal. The court ordered that the order of the Tribunal be set aside, and Mr Machon must pay the Club the sum of $11,496.90 plus interest from 16 January 2016 to 16 January 2019, which totalled $18,395.04. Each party was ordered to bear its own costs.