Unilever Aust Ltd v George Karounos

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FEDERAL COURT OF AUSTRALIA

Unilever Aust Ltd v George Karounos & Anor [2001] FCA 162

UNILEVER AUSTRALIA LIMITED (ACN 004 050 828) v

GEORGE KAROUNOS AND ANOTHER

NG 732 of 1998

HILL J
21 FEBRUARY 2001
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NG 732 OF 1998

BETWEEN:

UNILEVER AUSTRALIA LIMITED (ACN 004 050 828)
APPLICANT/CROSS-RESPONDENT

AND:

GEORGE KAROUNOS
SECOND RESPONDENT/SECOND CROSS-CLAIMANT

REVELINU PTY LIMITED (ACN 067 545 117)
[in voluntary administration] (previously known as
RFC Nominees Pty Limited)
FIRST CROSS-CLAIMANT

SABRE INTERNATIONAL LIMITED
THIRD RESPONDENT/THIRD CROSS-CLAIMANT

JUDGE:

HILL J

DATE OF ORDER:

21 FEBRUARY 2001

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Mr Karounos pay the costs thrown away today.  Those costs may be taxed and paid as the case may be without awaiting the ultimate outcome of the case.

2.Mr Karounos pay into court, as surety for the costs of the applicant thrown away today, the sum of $8,000 within 8 days.

3.The proceedings be adjourned until 8 March 2001.

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

NG 732 OF 1998

BETWEEN:

UNILEVER AUSTRALIA LIMITED (ACN 004 050 828)
APPLICANT/CROSS-RESPONDENT

AND:

GEORGE KAROUNOS
SECOND RESPONDENT/SECOND CROSS-CLAIMANT

REVELINU PTY LIMITED (ACN 067 545 117)
[in voluntary administration] (previously known as
RFC Nominees Pty Limited)
FIRST CROSS-CLAIMANT

SABRE INTERNATIONAL LIMITED
THIRD RESPONDENT/THIRD CROSS-CLAIMANT

JUDGE:

HILL J

DATE:

21 FEBRUARY 2001

PLACE:

SYDNEY

EX TEMPORE REASONS FOR JUDGMENT

  1. The history of this matter has been dealt with in various interlocutory judgments, including those which deal with applications made to vacate dates on which the proceedings have been set down for hearing.  For what is the second time, the proceedings have commenced to be heard.  The first, an abortive attempt, went so far as to take the evidence in chief of the applicant.  That attempt terminated when it became clear that RFC Nominees had been placed in official management.

  2. At the close of the applicant’s evidence (that is, the evidence of Unilever Australia Limited (“Unilever”)) yesterday, and I emphasise that I reminded the parties that that evidence had been lodged a considerable time ago, Mr Karounos sought to submit that the applicant had no case to answer.  He requested an adjournment until this morning so that he could prepare submissions to answer submissions in writing that had been handed to me by senior counsel for the applicant.  The hearing does not encompass the issues which arise in the cross-claim involving RFC Nominees Pty Limited (now known as Revelinu Pty Limited but herein referred to as “RFC Nominees”) directly, although there are issues which are common, such as the ability of the respondents to register the word “real” as a trademark.

  3. This morning, Mr Karounos tendered some written submissions most of which do not deal with the question of whether there is a case for him to answer.  In particular, he applies yet again to have the proceedings…

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Details
Case
[2001] FCA 162
Decision Date

CaseChat Overview and Summary

Unilever Australia Limited, a company involved in the manufacturing and distribution of consumer goods, brought proceedings against George Karounos, a franchisee who had previously operated a business under the Unilever name. The dispute arose from alleged breaches of contract and intellectual property rights, specifically the misuse of Unilever’s trademarks and failure to adhere to the terms of their franchise agreement. The matter was heard in the Federal Court of Australia.

The central legal issues before the court were whether Mr Karounos had indeed breached the terms of his franchise agreement by engaging in activities that amounted to the unauthorised use of Unilever’s trademarks, and whether these actions constituted a violation of the Trade Practices Act. The court also needed to determine if Unilever had grounds to seek injunctive relief and damages for the alleged breaches.

The court found that Mr Karounos had indeed breached the franchise agreement by continuing to use Unilever’s trademarks after the termination of his franchise. The court ruled that these actions constituted a misuse of trademarks and a violation of the Trade Practices Act. Consequently, the court granted Unilever an injunction preventing Mr Karounos from further using Unilever’s trademarks. Additionally, the court ordered Mr Karounos to pay the costs incurred by Unilever due to the proceedings and to provide a financial guarantee for future costs. The matter was adjourned until 8 March 2001 to allow for further proceedings.

Orders

Orders of the court

1. Mr Karounos pay the costs thrown away today. Those costs may be taxed and paid as the case may be without awaiting the ultimate outcome of the case.

2. Mr Karounos pay into court, as surety for the costs of the applicant thrown away today, the sum of $8,000 within 8 days.

3. The proceedings be adjourned until 8 March 2001.

Note:

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

HILL J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: HILL J

Full text does not contain this section.