Targus Group (UK) v Targus Australia (No 2)

In the matter of Targus Group (UK) versus Targus Australia (No 2), the Federal Court of Australia was presented with an application for interlocutory injunctive relief. The applicant, Targus Group (UK), alleged that the respondent, Targus Australia, had breached their contractual obligations and engaged in unconscionable conduct. The court was tasked with deciding whether to grant an interim injunction and if the applicant or its shareholder should provide an undertaking as to damages in relation to the cross-claim.

The legal issues before the court included whether the applicant had established a serious question to be tried regarding the alleged breach of contract and unconscionable conduct, and whether the applicant or its shareholder should give an undertaking as to damages in relation to the cross-claim. The court had to consider the balance of convenience in deciding whether to grant the interlocutory injunction, as well as the potential impact of the injunction on both parties.

In delivering the judgment, the court found that there were various serious questions to be tried based on the evidence presented to date. The court also considered the balance of convenience and concluded that the applicant had demonstrated that it was more likely than not that it would succeed in establishing the alleged breach of contract and unconscionable conduct. However, the court decided that relief should be granted in part, subject to the applicant's shareholder giving the usual undertaking as to damages in relation to the cross-claim.

The court ordered that the respondent be restrained from engaging in certain activities pending the final determination of the proceedings. Additionally, the court ordered that the relief granted be subject to the applicant's shareholder providing an undertaking as to damages in relation to the cross-claim. The court emphasised that the undertaking was necessary to ensure that the respondent would not be prejudiced if the cross-claim were ultimately unsuccessful.