Strange, S. (SLSA) & Sydney SLSA Helicopter Resuce Service Pty Ltd v Careflight Ltd

[1987] FCA 54

54-

I N T H E F E D E R A L C O U R T O F A U S T R A L I A ) )

NEW SOUTH WALES D I S T R I C T R E G I S T R Y N o . NSW G . 2 2 of 1937

)

D I V I S I O N G E N E R A L )

First	A p p l l c a n t
S Y D N E Y	S L S A H E L I C O P T E R
R E S C U E	S E R V I C E PTY

L I M I T E D

Second A p p l l c a n t

A N D : C A R E F L I G H T L I N I T E D

Flrs t R e s p o n d e n t

PETER MacCORMICK

Second R e s p o n d e n t

PETRONELLA RYAN

T h l r d R e s p o n d e n t

CORAM :	WILCOX J
PLACE :	SYDNEY
DATE :	28 JANUARY 1987

M I N U T E S OF ORDER

L .

Upon t h e A p p l l c a n t s g i v i n q t h e u s u a l u n d e r t a k i n g s as t o

damages THE COURT ORDERS THAT:

1. The f i r s t r e s p o n d e n t I ts s e r v a n t s a n d a g e n t s a n d t h e

second and t h i r d r e s p o n d e n t s b e r e s t r a i n e d p e n d l n g

f u r t h e r o r d e r o f t h l s C o u r t f r o m :

( a ) s e e k l n g s p o n s o r s h l p of; or

( b ) t a k i n g a n y s t e p s t o a d v e r t l s e o r

o t h e r w l s e	t o promote	t o members	of	t h e
p u b l l c

a n y f o o t r a c e o r o t h e r r a c e e v e n t In N e w Sou th Wales

u n d e r o r In a s s o c l a t l o n w l t h t h e names " B r l d g e t o

Breake r s " and /o r "Harbour t o Manly".

2 . Any p a r t y 1s g r a n t e d l l b e r t y t o a p p l y on f o r t y - e i g h t

( 4 8 )	h o u r s '	n o t l c e	f o r	v a c a t l o n	or	v a r l a t l o n	o f	t h i s
o r d e r .

3 . Costs o f t h l s application s h a l l b e costs In t h e

p r i n c l p a l p r o c e e d l n g s .

Note: S e t t l e m e n t a n d e n t r y of orders 1s d e a l t w l t h In O r d e r

36 o f t h e F e d e r a l C o u r t R u l e s .

NOT FOR DISTRIBUTION

IN THE FEDERAL COURT OF AUSTRALIA 1

1

NEW SOUTH WALES DISTRICT REGISTRY	)	No. NSW G.22 of 1987
)

GENERAL DIVISION 1

First Appllcant

SYDNEY SLSA HELICOPTER

RESCUE SERVICE PTY

LIMITED

Second Appllcant

AND: CAREFLIGHT LIMITED

Flrst Respondent PETER MaCCORMICK Second Respondent PETRONELLA RYAN

Thlrd Respondent

CORAM :	WILCOX J
PLACE :	SYDNEY
DATE :	28 JANUARY 1987

EXTEMPORE REASONS FOR JUDGMENT

2.

I i n d l c a t e d y e s t e r d a y t h a t a f l n a l h e a r l n g o f t h l s

matter c o u l d b e a r r a n g e d t o commence on T h u r s d a y , 1 2 F e b r u a r y ,

t h a t is t o s a y two w e e k s tomorrow. T h e p r e s e n t application 1s

c o n c e r n e d o n l y w i t h w h a t o r d e r , ~f a n y , s h o u l d be made u n t l l

t h e c o m p l e t l o n o f t h e f l n a l h e a r l n g . On b e h a l f o f t h e

a p p l l c a n t s Mr Y a t e s s e e k s orders i n a c c o r d a n c e w l t h p a r a s . 1 , 2

and 3 o f t h e A p p l l c a t i o n ; Mr I r e l a n d s u b m l t s t h a t t h e r e o u g h t

t o b e n o o r d e r a t a l l .

T h l s b e l n g a n application f o r a n I n t e r l o c u t o r y

l n j u n c t l o n two matters a re r e l e v a n t f o r c o n s l d e r a t i o n . T h e

f l r s t of t h e s e 1s w h e t h e r t h e r e 1s a s e r i o u s f l u e s t l o n t o be

t r l e d I n r e l a t l o n t o t h e allegations of d e c e p t l v e or

m l s l e a d l n g conduct made by t h e a p p l l c a n t s a g a l n s t t h e first

r e s p o n d e n t , C a r e f l i g h t L l m l t e d , a n d I n r e l a t l o n t o which I t 1s

a l l eged t h a t t h e s e c o n d and t h i r d r e s p o n d e n t s , M r P e t e r

MacCormlck	and	Mlss	P e t r o n e l l a Ryan,	have	been	knowlngly
c o n c e r n e d .

T h e e v i d e n c e l n d l c a t e s t h a t f u n r u n s h a v e been s t a g e d

i n e a c h o f t h e y e a r s 1 9 8 1 t o 1 9 8 6 l n c l u s l v e , o t h e r t h a n t h e

y e a r 1 9 8 2 , b e l n g r u n s f r o m t h e H a r b o u r B r i d g e a t Mllsons P o i n t

t o Manly Beach. I t a p p e a r s t h a t Mr MacCormlck o r l g l n a l l y

c o n c e i v e d t h i s e v e n t w h l l s t he was a v o l u n t e e r a s s o c l a t e d w l t h

t h e H e l l c o p t e r R e s c u e S e r v i c e o p e r a t e d on b e h a l f o f t h e S u r f

3 .

Llfe Savlng Assoclatlon and that he was substantially the

organlzer of the lnltlal run In 1981. The Assoclation

provlded volunteers to assls'c on that occasion and the proflts from the run went to the Hellcopter Rescue Servlce. After Mr

MacCormlck became the dlrector of the Helicopter Rescue

Servlce In 1982 he decided to reinstate the event and from

1983 to 1985 lncluslve he, ln conjunctlon wlth Mlss Ryan,

organlzed the event on behalf of the Hellcopter Rescue

Service. After Mr MacCormlck left the employment of the

Hellcopter Rescue Servlce In early 1986 the run was staged by others on behalf of the Hellcopter Rescue Servlce. The name used In relation to all years other than 1986 was "Brldge to

Breakers". In 1986, because of a dlspute between the

Assoclatlon and Mr MacCormlck as to entltlement to use that

name, there was substltuted the name "Harbour to Manly",

However, lt 1s a common feature, ln relatlon to all years,

that the advertlsing rnaterlal whlch was put out to the publlc

stated that proceeds went to the Surf Llfe Savlng Hellcopter

Rescue Service and In fact, according to Mr MacCormlck, this

1s what happened to the money; save for some asslstance glven

to the Shelly Beach Power Boat Unit, whlch	1s associated wlth
the Surf Llfe Saving Assoclatlon.

The case sought to be made by the appllcants 1s that

this hlstory has generated In the minds of the publlc an

associatlon between the names "Brldge to areakers" and, more

latterly, "Harbour to Manly" wlth the work performed on behalf

4 .

o f t h e d i r e c t l y , community by t h e H e l l c o p t e r R e s c u e S e r v l c e a n d , l ess

w l t h t h e S u r f L i f e S a v l n g A s s o c l a t l o n . A s Mr

I r e l a n d s u b m i t t e d , t h e i s s u e f o r t r l a l 1s w h e t h e r h a v l n g

regard t o t h e h i s t o r y o f t h e mat ter t h e use o f t h e name

" B r l d g e t o Breakers" -- a s is p r o p o s e d b y h i s c l i e n t s f o r a

slmllar r u n l n t e n d e d t o be o r g a n l z e d o n b e h a l f o f a d l f f e r e n t

c h a r l t y f q r 30 A u g u s t n e x t -- w o u l d c o n s t l t u t e m l s l e a d l n g o r

d e c e p t l v e c o n d u c t . Mr I r e l a n d c o n c e d e s t h a t t h e r e is a

s u b s t a n t l a l I s s u e f o r t r l a l on t h a t mat te r .

H a v i n g r e g a r d t o t h e f a c t t h a t a f l n a l h e a r l n g w l l l

t a k e p l a c e f a l r l y s h o r t l y , a n d t h a t t h e e v l d e n c e a t t h a t tlme

may b e d l f f e r e n t f r o m t h a t a t t h e p r e s e n t tlme, I r e f r a l n f r o m

e x p r e s s l n g a n y v l e w a b o u t t h e m a t t e r o t h e r t h a n t o s a y t h a t I

t h l n k t h e s t r o n g l y a r g u a b l e c o n c e s s i o n is p r o p e r l y made and t h a t t h e r e 1s a

case t h a t u n d e r t h e c l r c u m s t a n c e s t h e u s e by

t h e r e s p o n d e n t s of e l t h e r o f t h e names "Brldge t o B r e a k e r s " or

"Harbour t o Manly" would be mls leadlng . I e m p h a s i z e t h a t t h l s

1s a t e n t a t l v e v i e w a n d t h a t I t may r e q u i r e r e c o n s i d e r a t l o n I n

t h e l l g h t o f a n y f u r t h e r e v l d e n c e w h l c h may be adduced .

Looking a t t h e materlal w h l c h h a s b e e n p u t o u t o v e r

t h e y e a r s , ~t seems t h a t s p o n s o r s h i p h a s become i n c r e a s l n g l y

s l g n l f l c a n t a n d n o d o u b t t h l s r e f l e c t s , a s well as p a r t l y

c a u s e s , t h e l n c r e a s e d t u r n o u t f r o m y e a r t o y e a r . The ev ldence

o f Mr MacCormlck is t h a t h e h a s s t i l l o n e s p o n s o r t o be

o b t a l n e d . I I n f e r f r o m t h l s t h a t h e a l r e a d y h a s made some

5.

arrangements, whether flrm	or tefitative I do not know, with
some sponsors but that he	is presently actlvely seeklng one

more sponsor to make up what he regards as belng the

approprlate complement. There 1s evldence that an approach

was made by Mlss Ryan to Slngapore Alrllnes, seeking

sponsorshlp, by the use of a letter In which it was stated

that the event was a continuatlon of events formerly staged by

Carefllght Llmlted. Thls representation was, I think, clearly

Incorrect. There may be a good explanatlon for the form of the letter; and I bear in mlnd that Mlss Ryan has not been

served with the Appllcation and has not been represented

before me, so I forbear from maklng any comment. However, I

thlnk that the letter does emphasise the danger of an approach

to a sponsor at a time when the entltlement of the

organlzatlon making the approach 1 s under challenge.

It seems to me to be more than speculatlon to say, ~f

sponsors are approached by one party and lnformatlon 1s put before them whlch turns out to be mlsleadlng, that thls may

generate a Aislncllnation to have anythlng to do wlth any

party staging a simllar event. I think It would be most

undeslrable for any sponsor to be approached upon the basls

that there 1s an entltlement to use the names "Brldge to Breakers" or "Harbour to Manly" untll such tlme as the positlon 1s clarlfied. I bear in mlnd that it 1s not as If

there 1s some crltlcal date €or selectlng sponsors. There 1s

no suggestion that a temporary prohlbltion, ~f ~t turns out to

6.

b e t h a t , p r e j u d l c l a l o n t h e r e s p o n d e n t s ' a p p i - o a c h l n g s p o n s o r s w o u l d b e

t o t h e l r c h a n c e s o f s t a g i n g t h e l r e v e n t I f t h e y

a r e h e l d e n t i s l e d so t o d o .

T h e o t h e r a s p e c t o f t h e matter 1s t h e a d v e r t l s l n g or

p r o m o t l o n of t h e e v e n t t o m e m b e r s o f t h e p u b l i c . T h e r e 1s n o

e v l d e n c e t o suggest t h a t t h e r e are a c t l v e p l a n s t o p r o m o t e t h e

e v e n t t o t h e m e m b e r s o f t h e p u b l i c w l t h l n t h e n e x t few weeks.

But i t 1s l l k e l y t h a t some tune b e f o r e t h e e v e n t t h e r e w l l l be

p r o m o t l o n a l mater la l p u t o u t ; a n d I t w o u l d b e u n d e s l r a b l e f o r

materlal t o b e p u t o u t u s l n g a name w h l c h t h e C o u r t m i g h t h o l d

u l t l m a t e l y t o b e m l s l e a d l n g u n d e r t h e c l r c u m s t a n c e s . O n c e

a g a l n t h e r e 1s n o s u g g e s t l o n t h a t a n y t e m p o r a r y p r o h l b l t l o n o n

p r o m o t l o n o f t h e e v e n t 1 s l l k e l y t o a d v e r s e l y a f f e c t t h e

success o f t h e p r o p o s e d r u n o n 30 A u g u s t , ~f t h e r e s p o n d e n t s

are h e l d a t t h a t time. e n t l t l e d t o s t a g e t h e e v e n t u n d e r t h e p r o p o s e d name

I n my v l e w t h e b a l a n c e o f c o n v e n l e n c e l n d l c a t e s

t h a t a l lmlted l n j u n c t l o n s h o u l d b e m a d e . I e m p h a s l s e t h e

word "limited" b e c a u s e t h e l n j u n c t l o n I t h l n k t o b e

a p p r o p r l a t e is more r e s t r i c t i v e t h a n t h e w i d e r o r d e r s s o u g h t

b y t h e a p p l i c a n t s I n t h e A p p l l c a t l o n . T h o s e o r d e r s may or may

n o t t u r n o u t t o b e j u s t l f i e d a f t e r t h e f l n a l h e a r l n g ; b u t n o t

a t t h e p r e s e n t tune.

I n o t e t h a t c o u n s e l , o n b e h a l f o f t h e a p p l l c a n t s ,

g l v e s t h e u s u a l u n d e r t a k l n g as t o damages . Hav lng r ega rd t o

t h a t u n d e r t a k l n g I o r d e r t h a t t h e f l r s t r e s p o n d e n t , ~ t s

7 .

s e r v a n t s a n d a g e n t s , a n d e a c h Q f t h e s e c o n d a n d t h i r d

r e s p o n d e n t s b e r e s t r a i n e d p e n d i n g t h e f u r t h e r o r d e r o f t h l s

C o u r t f r o m

( a ) s e e k i n g s p o n s o r s h l p o f ; o r

( b ) t a k l n g a n y s t e p s t o a d v e r t l s e or

o t h e r w l s e	t o p romote	t o members	o	f	t he
p u b l l c

a n y f o o t r a c e o r o t h e r race e v e n t i n N e w S o u t h W a l e s I n o r I n

a s s o c l a t i o n w l t h t h e n a m e s " B r i d g e t o B r e a k e r s " a n d / o r

"Harbour t o Manly". I g r a n t l l b e r t y t o a n y p a r t y CO a p p l y o n

4 0 h o u r s ' not ice f o r a v a c a t l o n o r v a r l a t l o n o f t h a t o r d e r .

I t h l n k t h e a p p r o p r l a t e order f o r costs 1s as Mr

I r e l a n d s u b m i t s . T h e p o s l t l o n is t h a t t h e a p p l l c a n t s h a v e

o b t a l n e d a n o r d e r I n n a r r o w e r terms t h a n t h a t f o r w h l c h t h e y

c o n t e n d e d . On t h e o t h e r h a n d t h e r e s p o n d e n t s d l d o f f e r a n

u n d e r t a k l n g w h l c h was I n t e n d e d t o o b v i a t e t h e n e c e s s l t y f o r a n

interlocutory h e a r l n g . I n my v l e w t h a t u n d e r t a k l n g d l d n o t go

f a r e n o u g h . I t h l n k I t 1 s t r u e t o s a y t h a t t h e r e s u l t t h l s

morn ing IS t h a t I have come t o a v lew on t h e a p p r o p r l a t e o r d e r

whlch l i e s mldway be tween the two p r o p o s a l s . T h l s m o r n l n g h a s

r e a l l y b e e n c o n c e r n e d w l t h t h e q u e s t l o n o f w h a t is t h e

a p p r o p r l a t e o r d e r s o t h a t a l t h o u g h t h e a p p l l c a n t s h a v e

o b t a l n e d a n o r d e r I t 1s p r o b a b l y t r u e t o s a y t h a t b o t h p a r t i e s

8 .

have had some l m l t e 3 success. U n d e r t h o s e c l r c u m s t a n c e s , I

t h l n k t h a t t h e a p p r o p r l a t e o r d e r is t h a t t h e costs of t h l s

a p p l l c a t i o n b e cos ts I n t h e p r l n c l p a l p r o c e e d l n g s .

I w l l l f i x t h e f i n a l h e a r l n g t o commence on 1 2

F e b r u a r y 1 9 8 7 a t 11.00 a.m. I d l r e c t t h a t t h e f l n a l h e a r l n g

b e on cross-examlnatlon t h e b a s l s o f a f f l d a v l t e v l d e n c e s u b ~ e c t t o

a s r e q u l r e d , a n d I m a k e d l r e c t l o n s f o r

f l l l n g o f a f f l d a v l t s I n a c c o r d a n c e w l t h t h e t i m e t a b l e a g r e e d

by counse l and j u s t announced . I g r a n t l e a v e t o t h e p a r t l e s

t o I s s u e s u b p o e n a e m a d e r e t u r n a b l e a t 9 . 3 0 a . m . on 10 F e b r u a r y

1 9 8 7 I f s o d e s l r e d .

I c e r t l f y t h l s a n d t h e s e v e n ( 7 )

p r e c e d l n g p a g e s t o b e a t r u e copy of

t h e Reasons f o r J u d g m e n t o f I

h l s Honour Mr J u s t l c e Wllcox.

C o u n s e l f o r t h e A p p l l c a n t : Mr D M Yates

S o l l c l t o r s f o r t h e A p p l l c a n t : Mln te r S lmpson

C o u n s e l f o r t h e R e s p o n d e n t : Mr J M I r e l a n d

S o l l c l t o r s f o r t h e R e s p o n d e n t : Gadens

Date o f h e a r l n g : 28 J a n u a r y 1 9 8 7