United Dairy Power Pty Ltd v Murray Goulburn Co-operative Co Ltd

In the case of United Dairy Power Pty Ltd v Murray Goulburn Co-operative Co Ltd, the Federal Court was asked to consider an application for an interlocutory injunction. The applicant, United Dairy Power (UDP), sought to restrain the respondent, Murray Goulburn Co-operative Co Ltd (MGC), from making certain representations about UDP's financial situation to third parties. The dispute arose from allegations that MGC's employees made disparaging comments about UDP's financial health to dairy farmers, potentially damaging UDP's reputation and ability to secure milk supplies.

The court was required to determine whether there was a serious question to be tried regarding MGC's alleged actions and whether the balance of convenience favoured granting the interlocutory relief sought by UDP. Additionally, the court needed to address the admissibility of hearsay evidence presented by UDP, the potential prejudice of the evidence, and whether UDP needed to prove actual damage to succeed in its application.

The court found that UDP had established a serious question to be tried based on the evidence provided, which included affidavits and written submissions. The court held that the hearsay evidence, though considered double hearsay, was admissible as it was not unfairly prejudicial and was relevant to the issues at hand. The court emphasised that the balance of convenience favoured granting the injunction, as the potential harm to UDP's reputation and business outweighed any inconvenience to MGC. Consequently, the court granted the interlocutory injunction as requested.

The court ordered that MGC be restrained from making specified representations about UDP's financial situation to third parties. The court also set a timetable for the filing of statements of claim, defences, discovery documents, and further evidence. The proceedings were referred to mediation, and further directions were scheduled to be determined at a later date. Costs were reserved pending the outcome of the proceedings.