W.A. Wehbe Pty Ltd v Caltex Oil (Australia) Pty Ltd

CATCHWORDS

Petroleum marketing - termination of leases and supply agreements In respect of two service stations - allegations that lessees of service stations engaged in receiving stolen distillate - circumstantial evidence - analysis of complex facts.

Petroleum Retail Marketins Franchise Act	1980. ss .	3 , 7, 16 and
17.

W.A.

WEHBE FTY LIMITED v.

C A L T M OIL (AUSTRALIA) PTY LIMITED

No. G357 of 1986

W.A.

WMBE v.

C A L T M OIL (AUSTRALIA) PTY LIMITED

No. G358 of 1986

GEORGE HA'ITI v. CALTM OIL (AUSTRALIA) PTY LIMITED

No. G422 of 1986

C m : Sheppard J.

&	D	:	24 December 1986
P l a c e :	Sydney

IN THE FEDERAL COURT OF AUSTRALIA

)

NF;w SOUTH MALES DISTRICT REGISTRY )

DIVISION

GFNERAL

G357 of 1986

BETWEEN: W.A. WEHBE PTY LIMITED

Applicant

AND:

CALTEX OIL (AUSTRALIA) PTY LIMITED

Respondent

G358 of 1986

W.A. WEHBE

Applicant

CALTEX OIL (AUSTRALIA) PTY LIMITED

Respondent

G422 of 1986

BEIWEEN:

GEORGE HA'JTI

Applicant

CALTEX OIL (AUSTRALIA) PTY LIMITED

Respondent

2 .

W: SHEPPARD J.

PLACE: SYDNEY

: 30 DECEMBER 1986

MINUTES OF ORDER

THE COURT ORDERS THAT:-

For Orders see attached copies

of Short Minutes of Order.

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 )

GENERAL

DIVISION

No. G357 of 1986

W. WEHBE PTY LIMITED

Applicant/Cross-Respondent

CALTEX OIL (AUSTRALIA) PTY LIMITED

Respondent/Cross-Claimant

SHORT MINUTES

1. The Court notes, by consent, that the correct name of the Applicant/ Cross-Respondent in these proceedings is W. Wehbe Pty Limited and not W.A. Wehbe Pty Limited.

2. The Court directs that the name of the Applicant/Cross-Respondent as shown in the Application in these proceedings be amended so that it

reads W. Wehbe Pty

Limited.

3. The Court

declares

that the Respondent/Cross-Claimant by Notice in

writing dated 23 July, 1986 and served on the Applicant/Cross-Respondent

on 25 July, 1986 validly terminated the supply contract and lease being

the Franchise Agreements referred to in that Notice on 29 August, 1986.

4. The Court

declares

that

the

Respondent/Cross-Claimant is entitled to

possession of the premises known as Caltex Service Station, 77 Hume Highway, Chullora (also known as Corner Hume Highway and Waterloo Road, Chullora) ("the said premises").

-2-

5. The Court orders that the Applicant/Cross-Respondent give and deliver up

to the

Respondent/Cross-Claimant possession of the said premises.

6 .

The

Court

grants

leave

the

RespondentKross-Claimant

issue

forthwith

writ for possession in respect of the said premises and

directs that any such writ for possession lie in the Court Office until

such time as the disposal of

application by the Applicant/Cross

Respondent for a stay of operation and execution

such writ for

possession pending the hearing of an appeal if such

an application is

made on or before

4:OO pm on 4 February 1987 or until the expiration

the time for appeal at

4.00 p.m.

on 4 February, 1987, whichever event

last occurs.

7. The Court orders that the Application be dismissed.

The Court orders that the

Applicant/Cross-Respondent

pay the costs of

the

RespondentKross-Claimant

these proceedings in respect of the

Application and the Cross Claim.

9. Save in respect of paragraphs 1 and 2 hereof, the Court orders that the operation of and execution upon the foregoing declarations orders and

directions be stayed until such time as the disposal of

an application

by the Applicant/Cross Respondent for a stay of operation and execution

of such writ for possession pending the hearing of

an appeal if such an

application is made

on or before 4 : O O

pm or until the expiration

of the

time for appeal at 4.00 p.m.

on 4 February, 1987, whichever event last

........ ........ ........ .....

........ ........ ........ .

Counsel/- for the

Counsel/-r

for the

Applicant/Cross Respondent

Respondent/Cross-Claimant

IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY )

DIVISION	GENERAL )
No. G357 of 1986
W. WEHBE PTY LIMITED

Applicant/Cross-Respondent

CALTEX OIL (AUSTRALIA)

PTY LIMITED

RespondentKross-Claimant

SHORT MINUTES

MOORE AND BEVINS

Solicitors,

60 Martin

Place,

SYDNEY NSW 2000

Telephone: 232 6800

D.X. :

189

SYDNEY

Ref:	RRN
2451Q/24.12

S-

IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY )

GENERAL

DIVISION

)

No. G358 of 1986

W.A. WEHBE

ApplicanWFirst Cross-Respondent

CALTEX OIL (AUSTRALIA) PTY LIMITED

Respondent/Cross-Claimant

IjEORGE HATTI

Second Cross-Respondent

SHORT MINUTES

1. The Court declares that the Respondent/Cross-Claimant by Notice in writing dated 23 July. 1986 and served on the Applicant/First Cross-Respondent on 25 July, 1986 validly terminated the supply agreement and lease being the Franchise Agreements referred to in that Notice on 29 August, 1986.

2. The Court declares that

the Respondent/Cross-Claimant is entitled to

possession of the premises known as Caltex Service

Station, 563-567 Hume

Highway, South Strathfield (also known as

Corner Hume Highway and

Fitzgerald Crescent, Strathfield South) ("the said premises*').

The Court orders that the

Cross-Respondents and each of them give and

deliver

up to the Respondent/Cross-Claimant possession of the said

premises.

4. The Court

grants

leave to the Respondent/Cross-Claimant to issue

forthwith a writ for possession in respect of the said premises and directs that any such writ for possession lie in the Court Office until such time as the disposal of an application by the Cross-Respondents or either of them for a stay of operation and execution of such writ for

-2-

possession pending the hearing of an appeal if such an application is made on or before 4:OO pm on 4 February 1987 or until the expiration of the time for appeal at 4.00 p.m. on 4 February, 1987, whichever event last occurs.

The Court orders that the

The Court

orders that

Respondent/Cross-Claimant in these proceedings in respect of the

Application and the Cross Claim.

The Court orders that the operation of and execution upon the foregoing

declarations orders

and directions be stayed until such time as the

disposal of an application by the Cross-Respondents or either of them for a stay of operation and execution of such writ for possession pending the hearing of an appeal if such an application is made on or

before 4:OO pm on 4 February 1987 or until the expiration of the time for appeal at 4.00 p.m. on 4 February, 1987, whichever event last occurs.

Dated: 30 December, 1986

........ ........ ........ ....

. C . . . . . . . . . . . . . . . . . . . . . . .

Counsel/SeGe&ex for the	Counsel/- for the
Applicant/First Cross Respondent	Respondent/Cross-Claimant

Counsel/-

for the

Second Cross Respondent

IN THE FEDERAL COURT OF AUSTRALIA )	'- -a
NEW SOUTH WALES DISTRICT REGISTRY )
GENERAL DIVISION	)
No. G358 of 1986
W.A. WEHBE

Applicant/First

Cross-Respondent

CALTEX OIL (AUSTRALIA) PTY LIMITED

RespondenWCross-Claimant

GEORGE HATTI

Second Cross-Respondent

SHORT MINUTES

MOORE AND BEVINS

Solicitors,

60 Martin

Place,

SYDNEY NSW 2000

Telephone: 232 6800

D.X. :	189 SYDNEY
Ref :	RRN
24499/24.12

IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY )

GENERAL

DIVISION

)

No. G422 of 1986

GEORGE HATTI

Applicant

CALTEX OIL (AUSTRALIA)

PTY LIMITED

Respondent

SHORT MINUTES

BY CONSENT:

1. The Court declares that the Applicant is not a franchisee of the Respondent in respect of the premises known as Caltex Service Station, 563-567 Hume Highway, South Strathfield (also known as Corner Hume

Highway and Fitzgerald Crescent, Strathfield

South)

("the said

premises").

The Court orders that the Application be

dismissed.

The Court orders

that

the

Applicant give and deliver

up to the

Respondent possession of the said premises.

4. The Court grants leave to the Respondent to forthwith issue a writ for possession in respect of the said premises and directs that any such writ for possession lie in the Court Office until such time as the disposal of an application by the Applicant for a stay of operation and execution of such writ for possession pending the hearing of an appeal if such an application is made on or before 4:OO pm on 4 February 1987

or until expiration of the time for appeal at 4.00 p.m.

on 4 February,

1987 whichever event last occurs.

-2-

5. The Court orders that the Applicant pay the Respondent's costs in these proceedings.

6. The Court orders that the operation of and execution upon the foregoing declarations orders and directions be stayed until such time as the disposal of an application by the Applicant for a stay of operation and execution of such writ for possession pending the hearing of an appeal if such an application is made on or before 4 : O O pm on 4 February 1987

or until

the

expiration

of the

time for appeal at 4.00 p.m. on

4 February, 1987 whichever event last occurs.

DATED: 30 December, 1986

........ .....

........ ........ ........ .

Counsel/SoLisi(ier for the	Counsel/S-r	for the
Applicant	Respondent
0281M

IN THE FEDERAL COURT OF AUSTRALIA )

NEW SOUTH WALES

DISTRICT REGISTRY

DIVISION	GENERAL	)
No. G422 of 1986
GEORGE HATTI

Applicant

CALTEX OIL (AUSTRALIA)

PTY LIMITED

Respondent

SHORT MINUTES

MOORE AND BEVINS

Solicitors,

60 Martin Place,

SYDNEY NSW 2000

Telephone: 232 6800

D.X. :	189 SYDNEY
Ref:	RRN
0281M/24.12

...

aureement containinu:-

........ ........ ........ ........ ........ ..

e f f 2 c t :

o r

( b l

declare that- Rotice ro havs

Terninated.

1 .

-. __

LI.

discharged i n t n

underground storaqe ?.t

the

premises

q u a n t i t y

o f

6 , 7 0 0

l l t r e s

of distillace.

drmre tke

veh ic l e from

the

Fremlses.

The

q u a z t i t ?

q f

distillate as

a f o r e s a i d . ronprise6 part

Q € a

c u a n t l t v tntalling

27.00C

l l t r e s

loaded

by Caltex

a t i t s Banksmeadow.

NSW terminal	and Invoiced f o r mielivery
bv Caltes to	t h e S t a t e Rall >.uthorit.I.

Loco Runninrlr Yard. E~field. ?ISW

I n v o i c e !To.

BA08435)

I' .

16.

which are

made: Br ia inshaw v.

Brlu inshaw (1939) 60

C.L.R. 336.

p a r t i c u l a r l y at p p .

350-363.

However.

t h e st3ndat-d remains that

p r o o f

upon

a b a l a n c e

o f

p r o b a b l l l t z e s .

n o t p r o o f

b e y n d

r e a s o n a b l e

d o u b t .

T h e

d i s t l n c t i o n

was

emphasized

i n

R e i f e k -7.

KcElrgv

( 1 9 6 5 )

117- C . L . R .

517 where

the

Uol.~r+, sald

( p p .

5 2 1 - 2 ) : -

2 3 .

i n the

i n v g i c e s tc

any

part ic l l lar

time5 durincr which

the : reh ic l??

i n question

were a b s e n t frgm

the terminal or

to anv p?.r t icular

de l ivery of

fuel.

2 6 .

?videnee a l s o es tab l i shes

thst

M r .

Wehbe

was

o r e s e n t durica ?art

gf	the tame tha t the tmker v a s there.

3 0 .

withdraw the hoses frcm tie tmderarolmd t a n k s and r e t u r n th?m

t o t h e vehicle.

9-12 v e h i c l s left the premlces a r 1 0 . 4 3 a.m.

32.

spectacles.

Mr. Hartnett said that he had see? Yr. Hehbe le.=tve

t3e s p r o i c o s t a t i o n a t

3 . 5 0

p.m.

s a w hlm

r e t u r n at

4.49

?.m.

M r .

Wehbs was

not

pres?nt. rkerefore.

whi l s t

t he

tanKer

v a s

there.

33 *

c o n c l u s i o n s

f o r

the rime 5ei?.rg.

44.

I can now come to the question whether I am satisfied that the qrounds relied upon in each notice h w e been established. T approach that task by considering arounds 1 tlr, 5 first of all. There are firstly some general matters to be mentioned. A5 earlier said. Mr. Wehbe. Mr. Martin and Mr. Bedworth were not

c3lled to aive evidence. Evidence was led on behslf of Caltex cf

at-tevpts made at various times to serve subpoenas u p o ~ Mr. F.arti?

and MY. Bedworth.

For reasons which need not be mentioned. these

attempts failed. But it should be said

that Caltex did its

utmost to have these witnesses available to be examined.

CharTes laid aminst Mr. WeMe for receivim 5tclen drmertv ?a< net been dealt with at t h e time the matter vas hearrl. In ?he week before the hearing cgmmenced conslderatlcn was aiven by ccunsel for the company and Mr. FJebhe tc seeklnrs an adiourqment p-ndznq t h e outcome nf t h e criminal procpedlnas. P.fter esse

ccnsiderarion. counsel decided

n o t t@ make 337 s1-1~5

spp11c4:im.

Although there 1 s no evidence of it. a reason

vkr M r . Trl~?3? WIZ

P C ~

called

as a witness

nay have been

the PutstandinT c r i ~ ~ n a l

:?.ar~e5 against hin.

In ordinary circumstance. the failure gf a

~ ' t r ty .

vfthout e?rplanati?n. to

into the rztnezs box eFab?rs ?L

c o u r t the more

readily to accept the ca5e which is brcuaht

auainst him. In particular it enables it the mcre readily tc draw inferences which are @Den on the face of the other party's evlrlence: Jcnes v. Dunkel (1959) 101 C.L.R. 2 9 8 . I S P P nc reason why the ordinary rnA1e should not apply in this case. Criminal nrcceedings or nct. the evidence led in the Caltex case shows

4 5 .

that Mr. Wehbe was a person who was likely to have had knowledqe of the circumstances i n which the various deliveries of fuel or distillate were made. His fallure to uive evidenre dnes mean that inferences which are open on the face of the Caltex case may the more readily be drawn.

The next matter I mentlon is that in

cases invnlvinu the

3lleTed receipt nf stolen property it is snmetimes critical t o consider any explanation which an accuEed persnrl has offered for hi? pcscession or. alternatively. to take ir-.to account the f a c t

that he 5.3: given no explanation €nr it.

T!-~a.t is 3 matter which

I b q ~ e

p t ~ t aslde in +he preserlt case becsl:se

there 1 s T.P evidence

?%at Mr. WehSe was ever 3skerl t q explain hn~7	t h e distillate crr!nnn
I n t z the coaoanv's possession.

46.

evidence would be uiven by Mr. Martin and Mr. Bedworth. Be that

as it may, the evidence of Constable Crowleg does establish that

the quantity delivered on 3 Jlune 1986, before he stowped the

discharqe and caused Mr. Bedworth to be arrested. was 1,000

litres.

There is nn evidence. at least ?irectly. n f the qua?ti-t-?-c

n f

6.700

litres said to

have been

received nn

each

of the

t w o

occasions on 20 March.

However, Detective Constable Crowley's

evidence

of the mount of

distillate rlelivFred in the

p e r ~ o d

during which the tanker was discharmng on 3 June en3.bles a? inference to be dram. as t o the amount delivered nn each of the occasions on 20 March. One cannct be preclse about and ,?ne cDulcl n@t draw an inference that evsctlv 6.700 litres was

delivered m esch occaslon. Nevertheless, 1 am prenared +g 1pCer that the q ' x n t i t y c',elivered on each cccssinn vas of t h e o r d e r of

6 .000 litres.

I draw the Inference frwn a c~lcul3tinc

t h e

dlscharae rqte which must have obtained in +h? r s s e ,?f " I e

??liv-r:r

en 3 June.

Yad

1 n n t 5es? ab le tq drav ?h:.!

~ ? f e r e . n c n ,

would n n t

have reTarded the Ibsence

e-ndpnce

3 t h n r ~ t this

m t t n r 35 critical.. The essential ?.llecat~m was t h e r e c e l o ' nf

3 quantitv gf stolen distillate ~ r r l that this corstttvAte?. .?.in

offence of the kird specified i?

D a t - 9 .

16!2)fcr

of the A c t .

It remains to mention that

durinu the arcrument there vas some

discussion of the question

whether Caltex was able to rely on the

nrincicles relatipu to the admissibilltv of evidence nf similar

4 7 .

facts in support of I t s case. IF the view that I take of the matter. I do not need to reach a conclusion on that question. It is sufflclent to say that I have not. relied on the evi3eqi.e led in support of any ground as tendinu to establish the facts relied upon in support nf anv other.

48.

delivered short.

(Cl	There was insufficient evidence to implicate Mr. Wehbe or the company in knowinulg receivinu stolen distillate.

I deal with these submlssions as follows:-

(3)

I reject th?s submission. It was 3 a s ~ d p r ~ n c i p a l l v o n the vsrious private investiqakors being un.tb1e srtl~llally to se? flJel flowlnq into the tanks qf +he service stations. ReILance was also placed on dlfflculties the investlqators would have had in observin? whether inlets to the service stations' tanks were open. It was suffaeste.' khat the tankers mav have been present because the drivers were nn

private errands of

their

own avd thst

these

x e r - ~

unconnected with the delivery of flwl at all. Some support for these suguestlons was attempted to be obtained fro^ answers to questions asked snme of the Caltex

ntnesses lr? cross-examination a3out the hbits and

=rrivate pursults

n f some of

the dr177ers

I?. v v npinioq

the submission 1 s ~ u l t ~ ~:nre-l::tic. In esrh r=.se 9 tanker was present st the relevant zersri,:e sC.3:i-n f3t- 3~

aporecisble period. of ?$!!F.

H n 5 ~ s

were see? to h . v e ' re~n

y l l d from thetr houslnu nn the tsnkerc.	0". scne
qccasions people were observed diyJinu eith3r ??.P	t - y k s nf

the service station or the tankers themselves. In m y opinion there is =n cverwhelmimr balance of orobahllities in favour of the view that the tankers were, on each occasion. deliverinu fuel. A further point of criticlsm

49.

of the Caltev case wa4 the evidence dven by 511 who observe?. these apparent deliveries of there bei?a more than one hose in use. Detective Constable Crow?pv w a s +he only wltness who said that he saw OnlV one hose. Even Detective Constable Isemonuer. who observed the Imdol-tbted deliverv which occurred nn 3 June 1926. referred tc there being more than one hose. I have referred +n this matter earlier. It may be that the observations cf the priv3te investiuators and Dekectlve Constable Isemonuer were at fault. If khev were. it seems strarce t5at so many

Independent people

made

sinilar

cbservstIc,ns

cn the

se_narate occasions which are invnlved.

Be that a s it mjy.

\.??at r a t t e r s is the general

impression which e 2 c i wl+ness

h3d of

w h t was

crcgrrin?.

Each

SRW 3t leqst

h q s ?

from the t-snker on t h e czound.

In the 35se?cp sf o+?pr

wldence, that 1 s plainly an

indlcatlnr tg s? rrhg+r-,7er

thar deliVery of fuel was Seir.q effected $7 each ncca:<nn.

.leli~rerie~.I.

A further problem

f ? r rsltea ic

created bv

+he signatures cr. the invoices f o r thre- cf the deliveries

50.

which are relied upon. On the face nf the invglces. these siqaturos acknowledqe receipt by the State Rail P.lAthoritv of the deliveries of distillate made on 2 0 March and 3 1

March 1986. What the sicrnlficance of these Droblems is in relation to t h e establishment of the various 7rnunds is a matter I leave for cons-deratlon until I cnme to des1 with

e a c h urnund

lndivldusllv.

51.

i n d i c a t i o n s

i n

the

ev idence

o f

Mr.

Wehbe's

d i r e c t

p a r t i c i p a t i o n

i n

t h e

mamqpment

t h e

s e r v i c e

s t a t i o n s .

p a r t i c u l a r l y

the

C h u l l o r s

s e r v i c e

s t a t i o n .

=.e

t c t l l i t v

the e v i d e m e establishes

that

Mr.

W~khe m.5

the

p r i n c i p a l

e x e c u t i v e

i n

" the Wehbe

Grnup"

c p r t a i n l : ~

the

p r i n c i p a l

e x e c u t i v e

the

company.

h J i t h

t h e

exception

the d e l i v e r y to Eankstown m a Vsy 19?6- t h e d ~ ~ c ; l l a t e

i n

m e s k i o n

w e n t

i n t o

t h e

t a n h

t h e C h u l l o r s

s e r v i c e

s t a t i o n .

have said

r e l a t l o r .

i n

each of

these

d e l i v e r i e s that

t9.e

i n f e r e v e 1 s m e n tha t

Mr.

Wehbe

knew

that:

t h i s was

so.

a m clearly

n f

n p i r . i c n

that

t h s t

i ? f e rence shou ld

drawn.

53.

sisnificance vhich the sisnature should have. There are a number of possibilities. The signature may not be a q-ntline one: or the consignment may have been short delivered w i t k l o ~ ~ t the lmowledqe

of t h e persm vho signed the invoice.

These hypotheses are

consistent with

innocence on the p a r t

of all relevant employees

at t 3 e State Rail Authority. Qther hypotheses which may hayre spplied would involve the partlctpatlcn n f one gr mere e-plcyFe? of the State Rail Authority in what occurred.

Ground 5

This ?round, like the %hire. 1s plainly e5t3bliShed.

The foreqolnu analysis leads to the cnnclusion that ?h? facts

relied upon in support of the first five ?rounds

of esck ,3f +hp

notices have been established. Eecause Mr. Wehbe has been shown.

5 4 .

in effect. t o be the alter euo of the company it is established that the company knowinuly received the stolen distillate on each of the four occasions on which it was delivered to the Chullnra service station. To p u t it another way. it was the company which received the distillate into its tanks. The company knew that the distillate was stolen because Er. Wehbe’s knowledqe was the

company‘s knnwledue.

Accnrdlngly. grolmds l. 2 . 3 m+. 5 are

established in the case of the Chullora service s tak lor , .

I-	I
J 1 .

u p r e

n r t r b l i s h e d .

kurthernorr ,

rto

d c t v j led

s ~ b r n i b 6 i o r t h

u p r e

addressed in support o f t h e b ~

qrOIJI#d..

I t

u c ~ u l d

6rem t o ntrb th,i

t h e r e

may

h a v e b e e n e v i d e n t i a r y d ~ f f l r u l t ~ e s i r l

r r l a t i n r l t u them.

Y a r t l c u l a r l y 1s

t h a t

I n

t h e

c 3 b e

thp

F 1 x t h

g r o u n d

wh1r.ll

alleqes

c o n s p i r a c y

i n v o l v i n g

Mr.

Uahbr..

t h e comp3ny.

M r .

M s r t r r l

and

Mr.

A e J u o r t h .

One

p r o b l e m

c o n c e r n s

t h e

a l l e q s t i o n

th3 t

t w r l

t h e

c o n s p i r a t o r s

Were Mr.

Wehhe

and t h e company.

There

1s a

D r o b l e s becal.15~ of

conclusion t h a t Mr.

Wehbe

w 3 5

t h e a l t e r

eqn

t h e

conlpany.

d i r e c t o r

of a

company.

who

solely

r e s p o n s i b l e f o r

t h e

c o n d u c t

of t he

company ' s

b1.151ness,

c a n n o t

tow

c o r ~ v l r t e d

c o n s p ~ r l n ?

w i t h

t h e

coabparty,

s i n c e

o n l y

one

ni lr ld

i s

~ n v o l v e d

d e s p ~ t e

t h e

f a c t

t h a t the

company

h 3 5 a

s e p s r s t p

1 ~ q 3 1

pe rsc r rna l l t y ;

Rey.

v .

McDor t r~e l l C19Glsl

Q.B.

2 3 3 :

H i l s t u r v .

4 t h

€d., Vol.

11.

p a r s . 59.

p . 45.

I n s u n b n i 3 1 y

t h e n .

f i n d

g r o u n d s

1, 2.

jrld 5 of t h e

n o t i c e

s e r v e d

I n

r e l a t ~ o n

t o

t h e

C h u l l o r a

s e r v i c e

s t a t i o n

a n d

grounds

t,o

5 ~ n c l u ~ . l v e

of t h e

n o t i c e

s e r v e d

i n

r e l a t i o n

t o

t h e

S o u t h

S t r s t h f l e l d

s e r v l c e

s t 3 t l o n

e s t a b l i s h e d .

I n

r e l 3 t i o n

t o

thP

q r o u n d s

r e l i e d

~ l p o n

r e l a t i o n to t h e S o u t h S t r a t h f i e l d

s e r v i c e

s t a t i o r l

I flnd

t i l 3 t

b o t h

s u h - p a r a s .

(1 )

and

( l i )

par', . .

16(2)(c)

t h e A c t a z e

s p p l l c a b l e .

The

o f f e n c e e

w h i c h

h 3 v r

f o u n d

p r o v e d

a r e

e a c h

p u n i s h s b l e

b y

Impr1sonn len t .

Fu r the rmore .

t h e

f a c t

t h a t

t h e y

h a v e

beer1

c o m m i t t e d

t e n d s

t o

show

t h a t Hr.

Wehtop 1 s

d ~ s h o n e s t

o r

o t h e r w l s e

n o t

good

c h a r a c t e r .

S t J h l P c t

t,n

t h e

s p e c i a l

p o s i t i o n

Mr.

H a t t i .

t h e

r e n b s ~ n i n q

q u e s t l o n

1 5

u h e t h e r ,

p u r s u a n t

t o

p s r a .

l G ( - G ) ( l v ) ,

s s t l s f i e d

t h s t

t h -

T h e r e

a r e

t w o

f u r t h e r

t h l r l c j s

t o

b e

s s l d

a b o u t

C h u l l o r a .

F i r s t l y ,

I f .

c o n t r a r y

t o

f l n d l n q s ,

I h a d

n o t

f o u n d

q r o u n d a

snd 2

e s t a b l i s h e d

b e c a u s e

t h e

e v l d e n c e

d l d

n o t

p r o v e

r e c e l p t

s t o l e n

d l s t l l l a t e

a s

opposed

s t o l e n

t o

m o t o r

f u e l

a n

o f

u n s p e c i f i e d

k ~ n d ,

t h e

e v l d e n c e

l e d

s u p p o r t

o f

q r o u n d s

1 and

w o u l d .

n e v e r t h e l e s s ,

h 3 v e

b e e n

r e l e v a n t

t n

t n e

q u e s t l o n

whe thp r

it,

wss

l c l s t

a n d

e q u l t s b l e

t h 2 t

t h e

l e a s e

c h o u l d

tte

t e r m l n a t e 4 .

S e c o n d l y .

e v l d e n c e

W * <

l e d

i n

t h e

company'<

c35e

f r o m 3

Mr.

H l o t e l l l s

u h o

s s l d

t h a t

h e

h3ld

e::pressed

3rl

~ n t e r e s t 1rl

u u r c h 3 ~ l r 1 c ~

t h e

C h u l l o r a

5ervlCe

5 t a t l n n f r o m

the

company.

Therm

uas no

ev1denr.e

from Mr.

Wehbe t h a t

t h e

company

was

p r e p a r e d

t o

s e l l

t h e

service station t lus lness .

Th3t

1s s u f f l c l e n t

t o

d ~ s p o ? -

an!,

u e i q h t

uhlch

Hr.

H l o t e l l r s '

e v l d e n c e

n l q h t

h a v e

h a d .

A p a r t from

t h a t

c o n s i d e r ~ t l o n ,

s h o u l d

s a y

th3t

Hr.

H l o t e l l l n

5 7 ,

d i d

not

i n p r s s s

m e

u i t r l r b 5 .

h a v e

s u b s t a n t i a l

r e s e r v a t i o n

uhether

tip

uali

t o l l i n g

t h e

t r u t h .

r e l a t l o r ~

t o

t h e

5 u u t h

~ t r a t h f l e l d

5 e r v l c e

s t a t l o r ~ 1

p r o p o s e

corne

c o r ~ c l u s ~ o r ~ s

t o

st001~t t h e

i m p l i c a t l o n c

sub-para .

l G ( G ) ( b )

t h e

Art

for

t h a t

c a s e

uherl

h q v e

c n n s l d e r e d

t h e

csse turouqht b y Mr.

H a t t l .

t u r n

t o

t h a t

m a t t e r . .

Hr.

H a t t l was

n o t

s h o u r l

t o

h a v e

b e e n

part!,

t o

t h e

l ea se o r

s u p p l y a q r e e m e n t

e n t e r e d

i n t o

i n

r e s p e c t

t h e S o u t h

S t r a t h f l e l r l

s e r v i c e

s t a t i o n .

R u t

h e c la lms

t o

h a v e art

~ n t e r e s t , 1n

t h e

t ~ u s l n e s s

u h l c h

I S

t h e r e

c a r r t e d

ore,

3nd a l s c

a n

l r l t e r e s t

1rl

t h e

lease.

u h l c h

h e

c l s i m s

t o

h s v e

a c q u l r e d

f rom

Hr.

3nd

M r s .

G h a l p b

u h o

were

s s l d t o

h a v e

b e e n

f n r n l e r

) o l r l t

o w n e r s

t h e

se rv ice

s t 3 t l o n

w l t h H r .

Wahbr.

Ire

01 Ider

t h a t W I . H a t t i ' s

c a s e

n13y

h e

p r o p e r l y

u n d e r s t o o d

i t

n e c r s s 3 r y

t o

r e f e r

t o

t h o

a s r l l e r

s t a t e d

d e f ~ n ~ t i o n s

' f l a r ~ r h l

s e

aq reen len t '

3 n d

' s g r e e m e n t '

1rl

S .

o f t h e Act.

I n

t h e

s u b m l s s l o n

o f

c o u n s e l

fnr

Mr.

Hsttl

i t I S e n o u q h

f o r

h i m

t o

e s t a b l i s h

t h - . t

Mr.

H a t t l

h a s

t h e

I n t e r e s t

w h i c h

h e

clalms

s r ~ d

t h a t

h e

c o r n n 1 1 ~ n i c 3 t e J

n o t l c p

o f

h i s in terest

t o C a l t e x .

T h l s

is u h s t

h e

s a y s

h s p p e n e d .

o p l n l n r l t h e submission

15 c o r r e c t .

t h P ev lc le r lcp

d e s o n s t r s t ~ ~

t h a t Mr.

H a t t l

f a c t

h a s

t h e

i n t e r e s t

t h e

b u s l n e s s

a n d

t h e

l e a s e

w h l c h

h e

claims

a n d

t h s t C a l t e x

h a d

n o t i c e

l t .

h e 1s a

f r a n c h i s e r

u i t h l n

t h e

m e a n i n g

of t h e Act

h e c a u s e

h e

1s a

p a r t y

t o

f r a n c h i s e

al)reement

u l t h i n

t h e

m e e n i n q

t h e r e c l f .

so.

Hr.

Hat t i r a i d t h i t he

had p u r c h a s e d a share in t h e business

t h e serv ice s t a t i o n a t S o u t h S t r a t h f i e l d in November

1 9 B S from

Hr.

and H r s .

G h a l e b .

6 9 1 d

t h a t

s i n c e t,he

d a t e

e c q u l r e d

t h e

i n t e r e s t ,

h p

h a d

t h e

d a y

tfJ

day

c o n d u c t

a n d

c o n t r o l

t h p

b I J s1ness .

s a i d

t h e

k e y s

t h e

t o

premises

ue re

h i s

p o s s e b s i o n

a n d

t h a t

n o

k e y + were

h e l d b y M r .

Wehbe.

s a i d t h a t

~ i n c e

he had b e e n

s t t h e preniises

h e

h a d

b e e n

r e s p o n s i b l e

f o r

t h e

c o n d u c t of

t h e

b u s i n e s s

and

had a t t e n d e d t o a l l

i n q u t r l e s

a t t h P

p r e n ~ ~

s e s

i r l c l c l d l n q d e a l i n q s

U I

t h C31 t e x .

Wr.

H 3 t t i

s 3 t d t t l a t t h r r e was

s t o c k t s b ~

t h e

d a y

t h a t

hr.

was

t o t a k e

o v e r

t h e

G h a l e b s '

i n t e r e s t

1r l

the

b u s ~ n e s s .

s a i d

t h a t Mr.

f l a n a r r l v e d mid

t o

l a t e rtornii-13 on t h a t day.

Mr.

H a t t ?

s a i d

t h a t

h e

s a i d t o Hr.

Man.

'... t o

s a v e

arty

c o m p l l c a t l o n

l a t e r

o n ,

c n u l d

y o u

p l e a s e

f i n a l i z e

w h a t e v e r

h a c

t o he

d r a w n

b e t w e e n

S3ni

and

S l J s i e

( t h e

G h r l e b s )

a n d

Ca l t ex

s o

t h a t

u h e n

s t a r t 3nd

o f f i c i a l l y t ake o v e r

t h e

b u s i n e s s

t h e r e

will

be a

c l e a n

s h e e t

b e t w e e n

Calte::

a n d me'.

Hr.

Harl

r e p l l e d t h a t

t h s t w 3 5

s o m e t h i n g

t h a t

Mrs.

G h a l e b

a n d

h e

h319

h e e n

w o r k i n g

o n .

f l r .

Harm

s a i d

t h a t

w o u l d

l o o k

f o r w a r d

t o

d n i n q

tnlAs1ness

4 1 t h

H r .

H 3 t t l .

They

shook

h + n d s

a n d

Mr.

Msn

l p f t t h e p r e n ~ ~ s r s .

*(Georqe Wan):

' G e o r q e

y o u ' l l

s h o r t l y

r e c e l v l n q

a n o f f l c i a l

C a l t e x

statement w h i c h

comes

o u t a t

t h e

e n d

e a c h

o f

n i o n t h .

s h o w i n g

b a l a n c e

o f

c r e d i t s

d e b i t s .

O n

t h a t s t a t emen t

it. v111

M r s .

G h a l e b

s a i d t h a t

o r

a b o u t

S e p t e m b e r

1984

s h e

a n d

h e r

h u s h a n d

h a d

taken

o v e r

t h e

r u n n l n q

3rld

management

t h e s e rv l t -p

s t a t i o r ~

S o u t h

S t r a t h f l e l d .

T h e y

h 3 d

p u r c h a s e d

p a r t

o f

t h e

t e u s l n e s s .

L e l n q

3 s h a r e

h e l d

b y 3 Mr.

El.1ed.

Mrs. G h a l ~ b

d e p o s p d

t.0

c o n v e r s a t i o n s

s h e

h a d

h 3 d

t h e

p r e s e n c e

Mr.

Wehbe.

Mr.

M3n

and a

Hr.

N e l s o n ,

who

Mr.

M a n ' s

p r e d e c e s s o r .

D u r l n g

orno

t h e s e

c u n v e r s a t i o n s

Mrs.

I i h a l e L

s 3 i d

t , h 3 t

s h e

was

l n t r o r l u c ~ d

b y

Mr.

Wehbe

t o

Mr.

M3n

snd Hr.

N e l s o n

3 5 h l s p a r t n e r

l r ,

t h P

b I J s i n e s s .

Mrs.

G h a l e b

s s l d

t h 3 t

p r i o r

t o

s e l l l n q

t h e

s h a r e

t h e

t o u s l n e s s

H a t t i

t o w a r d s

t h e

e n d

1485

s h e

h3d

c o n v e r s a t i o n w i t h

M r .

Man.

She

s a l d .

'Georqe .

we 've

dec ided

t o

sell

our

s h a r e in

t h e s e rv i ce s t a t l o n .

We've

had some d e a l l r t ~ ~

w i t h

some

o t h e r

p e o p l e

who

u e r e

i n t e r e s t e d

buyrncj

a l l t h e

business,

W a l l y ' s

s h a r e

a n d

O U P S

well

h u t

t h a t ' s

f a l l p r ~

t h r o u q h .

Ue're

i n t e r e s t e d

t o

ntove

on t o someth inc j we

t h i n k

n i g h t

be a

b i t b e t t e r ,

so now

we're

g o i n g t o t r y t o s e l l J u s t our

s h a r e

6 0 .

. .

of	the business ' .

H r s .

G h a l e b

r e f e r r e d

t o

t h e

s t o c k t a k e

u h l c h

s h e

s a i d

o c c u r r e d

o n

3 1

D c t o h e r

1985.

Shp

r e f e r r e d t o t h e arrival

Mr.

Hart.

Mr.

H a t t l was

p r e s e n t

b l l t

t h e

s t o c k t a k e

uas

n o t

d o n e

I n

h l s

p r e s e n c e .

A f t e r

1 h a d

r e s e r v e d

d e c l s i o r r ,

art

application

was

m3dp

h v

c o u r t e l

f o r

Hr.

H a t t ~

t o

r e - o p e n

h i s

c a s e .

The

pu rpose

o f

t he

application u3s

t o

t e n d e r

l e t t e r

d a t e d

November

1985

u h ~ r h

H r .

Man

h a d

s l q n e d

o n

C a l t e x

l e t t e r h e a d .

a1 l o w e d

t h e

c a s e

t o

toe

r e - o p e n e d

a n d

t h e

l e t t e r

u3s

t e n d e r e d .

I n

t h e

f o r m

of a

r e f e r e n c e

a n d

1 s

c 1 g r l e d

f ir.

Man

as 4 r r a Manaqer

of C a l t e x .

T h e

s u b s t 3 n c e

t h e

l e t t e r

I S

3 5

f o l l o u = : -

' H r s .

Susan

Gh?,leb

uas

p a r t n e r

l e s s e e

t h e

C a l t e x

S e r v i c p

S t a t i o n ,

Hume

Hiqhuay,

South

S t r a t h f l e l d .

when

too l .

over

t h e

a r e a

i n

J a n u a r y

1985

and

cont ln l . led

t o do

untll

t h e

p a r t n e r s h i p

was

d i sbanded

Oc tober

30, 1985.

D u r i n g

t h i s

p e r l o d

s h e

m3na.jed

t h e

service

s t a t l o r l

s h o w l n q

d e d i c 3 t l o n

a n d

b u s i n e s s

s e n s e .

d i s p l a y e d

S h e

p l e a s a n t

c h a r a c t e r

u n d e r

s o n e t ~ m e s d i f f i c u l t c o n d i t i o n s ' .

B o t h

M r .

H 3 t t 1

and

Mrs.

Ghaleto

were

cross-examined

e r t e n s l v e l y

a b o u t

t h e i r

e v i d e n c e .

b u t

s a i n t a ~ n e d

t h a t

Hr.

M e n

k n e u

b o t h

t h e

G h J l e b s '

i n t e r e s t

1 n

t h e

b u s i n e s s

a n d

o f

t h e

a c q u i s i t i o n of

t h a t

i n t e r e s t b y

M r .

H j t t i .

f u r t h e r

m a t t e r

r e l l r d

u p o n

b y

c o u n s e l

f o r

H r .

H a t t l w 3 6 ,

61.

Chat ,

r l thouqh

Caltcx'r

i n v o i r e r f o r sales o f

motor

f u e l

t o

t he

South

S t r a t h f i e l d

e p r v l c e

n t . n t i o n

w e r e

always addressed

t n Mr.

Wehbe,

t h e y

w e r e

p a l d

b y

c h e q u e s

d r a w n

u p o n

t h e

a c c o u n t

company,

Wehbe

and

H s t t l P e t r o l e u n l

P t y

L l m r t e J .

T h e

i n v o i r p =

u e r e

a l l

s ~ q n e d

b y

H r .

K ~ r l uhcl

acknowledged

payment

of them on

C a l t e x ' s

t o e h a l f .

I t ~

s u b m i t t e d

t h a t

t h e

X n f e r e r l c e

s h o u l d

t*P

d r a w n

t h a t

I n

t h i s way

Mr.

Earl rnclst

have

known

Hr. H a t t i ' s

l n v o l v e r e n t

t h e

h l J S 1 n e ~ C .

Mr.

Mar,

d e n l e d t h a t he

knew t h a t Mr.

H a t t i

h s d

a c q u i r e d

l n t e r e s t

t h e

t n u s i n e s s .

d e n l e d

n o t i c l n ~

t h e name, WehbP and

H a t t l

P e t r o l e u n l

P t y

L l m l t e d .

o n

t h e

c h e q u e s

w h l c h

uere

p a l d

f o r

f IJe1 delivered t o

t h e

s e r v l c e

s t a t l o n .

H l s

e v i d e n c e

was

t h a t

h -

u n d e r s t o o d

t h a t

Mr.

Wehbe

h a d

a c q u l r e d

t h a t

i n t e r e s t

t h a t

h e

h a d

bec0.e

t h e

o w n e r

o f

t h e

e n t l r e t y

o f

t h e

t u u s l n e s s

a n d

o f

t h e

l e a s e .

H i s understanding,

so h e

s a l d .

was

t h a t H r .

H a t t l was

H r .

Jence in t h l s

r e s p o r t

H a t t l

o n

11 Srptemher

n1an39er of

t h e

S o u t h

hat

had

t he

day

t o

t h e premises.

f a 1 r

r e a d l n q o f

w h s t

h e

s a l d

w n u l d

SlJggeSt

t h a t h e

h a d

t h s t

c o n t r o l

1rl

h i s

c a p a c i t y

m s n a q e r

r a t h e r

t h a n

t h e

o w n e r

o f

a n

l n t e r e s t ,

1 n t h e G h a l e b s

b l J S i n e s 5 .

A l t h o u g h

Mr.

Man

c o n c e d e d

t h a t

he k n e u

t h a t

t h e

h s d

l n t e r e s t

t h e

h u s l n e s s ,

h e

s a t d

t h a t

h e

h a d

n n t

known

t h i s until

s h o r t l y b e f o r e

t h e y

s o l d .

H l s e v l d e n c e

u s s

t h a t

j u s t

p r l o r

t o

31 October

1985

Mrs

G h a l e h

t o l d

h ln t h a t

t h e y

werP

6 2 .

% e l l i n q

t h e

b u 6 i n e 6 s r

back

t a Hr.

Wehbe.

6 a l d t h a t

t h i s

came

8 s a

s u r p r i s ~ t o h i m

tlecausc he h a d

t h o u q h t

them

m s n a ~ p r s

o n l y u n t i l

t h s t t ime.

no t

t h i n k t h a t Mr.

f i n n ’ s

e v i d e n c e

t h a t

h e

knew

t h e

G h a l e b s ’

l r ~ t e r e s t in

t h e

b u s i n e s s

o n l y

s h o r t l y

b e f o r e

t h e y

s o l d

s ~ t s v e r y 1 November 1385.

wel l

u l t h

t h e

terms

o f t h e

r e f e r e n c e

w h i c h

w r o t e

o n

In t h a t

r e f e r e n c e

h e

s a t d t h a t M r s .

O h a l ~ b

waq

p a r t n e r - l e s s e e

of‘ t h e

Serv ice s t a t i o n

when

h e

t o o k

o v e r

t h e

a r e a

J a n u a r y

1 9 8 5 .

I t

t r u P

t h a t

t h e

r e f e r e n c e

c a n n o t

F O P

r e g a r d e d a s

heir17

d i r e c t

c o n f l i c t

u l t h

Hr.

Man‘s

e v l d e n r e ,

h u t

t h e

r e l e v a n t

p a r t

o f

i t

w o u l d

l e a v e

t h p

re3,der

with

t h e

impression

t h a t

b o t h

C a l t e i :

a n d

Mr.

Karl

were uell

auare of t h e

G h a l e l : ~ ~ ’

i n t e r e + t

5 1 1

a l o n ? .

Mr.

Man was r e c a l l e d

t o

g i v e

f u r t h e r

o r a l

e v i d e n c e

a f t e r

t h e

l e t t e r

h a d

b e e r 1

t e n d e r e d .

maintained

t h a t he had not

known

o f

t h e

G h s l e b s ’

d e p a r t u r e

f r o m

t h e

p r e m ~ s e s

u r l t l l

week

ten

d a y s

p r 1 o r

t o 31

O c t o b e r

1935

a n d ,

f u r t h e r ,

t h a t

h e d i d

n o t know.

11r1t.11

t h a t time,

t h a t

t h e y

h a d

s o m e

i n t e r e s t

t h e busrness.

was

a s k e d

q c l e s t l o n s

a b o u t

t h e

d e t a i l

o f

t h e

r e f e r e n c e

h e

h a d

q i v e n

Mrs.

G h a l e b

e n d

a ? r e e d

t h a t

a n o t h e r

p e r s o n

r e a d ~ n q

t h e

l e t t e r wou ld

t a k e f r o m

i t

t h a t

h e

wa5

a t a l l t i r e s aware t h a t .

t h e

p e r i o d

from

J a n u a r y

1 9 8 5 .

Hrs .

G h a l e b

uas

p a r t n e r - l e s s e e

i n

t h e

s e r v l c e s t 3 t l o n .

W L S asked q u p s t l n n s hnw

came t o

s a y

t h a t Hrs.

G h a l e b uas

p a r t n e r - l e s s e e .

s a i d

t h a t

h e

u n d e r s t o o d

u h a t

l essee

was.

His

u l t l s a t e

gnswer

t o ’ t h e s e

G3.

q u e c , t i o n s ua6 t h a t

S 1 1 he could nay u16 t h a t

' i t

uas a very bad

r h o r c t

u o r d s ' .

Hr.

Man

s w o r e

f u r t h e r

a f f i d a v i t

u h i c h

uas

reed

a t

t h e

r e s u m e d

h e a r l n g .

s a t d t h a t # a t a b o u t

1.15 s t 3 t , l o n

p . m .

Ort,otnrr.

1986

a t t e n d e d t h e

S o u t h

S t r a t h f l e l d

s e r v i c e

a n d

had

d i s c u s s l o n with

Mr.

H a t t l .

r e f e r r e d

t o

c t r c u l a r

l e t t e r

t n

c u s t o m e r s .

c o p y

o f

u h l c h

h e

h a d

p l c k e d u p

t h e

p r e v i o u s

day .

e s k e d

f o r

f u r t h e r

c o p y .

T h e

c o p y

h e a d e d

'Wehbe

P e t r o l e u m ' .

t l n d e r n e a t h

r e f e r e n c e

t o

p o s t o f f l c e

box

number

a t

B s n k s t o u n

a n d

t o

t h e a d d r e s s

o f

t h e

S o u t h

S t r a t h f l e l d

s e r v ~ r -

s t 3 t i o r 1 .

T h e

c l r c u l s r

a d d r e s s e d

t o

c u s t o m e r s

a n d

15 s a l d t,o

c n n c e r n

new

l m p r o v e d

a c c o u n t

f a c i l i t y .

T h e r e

i s

r e f e r e n c e

i t

t o

o f f e r l n g

30 d a y

a c c o u n t

a t

t h e

s e r v i c e

s t a t l o n .

T h e

s y s t e m

d e s c r l h e d

a n d

I t 1s

s a l d t h a t I t wlll

h e

a v a i l a b l e

from

1 November.

The

l e t t e r

s l g n e d

a b o v e

t h e

p r l n t e d

name,

'Wally

Wehbe ' .

The

s lgraa ture

1% n o t

d l s t t n c t ,

t s u t

i t

s h o u l d

b e

5318 i

t h a t

I t d o e s

n o t

a p p e e r

t o

b e

s i m i l a r

t o

t h e

s ~ g n s t u r e

u h l r h

a p p e a r s

or1

t h P

l e a s e

d o c u m e n t e

a i t h e s l ~ n a t u r e

o f Mr. Uehbe.

o p l r l l o n

n u t h l n g

t u r n s

o n

t h ~ s . The

~ n l p o r t a n t

f a c t 15 t h a t t h e

c i r c u l a r

u35

a v a l l a h l e

a t t h e

S o u t h

S t r a t h f l e l d

se rv ice

s t s t l o n .

I t	4 3 s	h a n d e d	t o	Mr.	Man	by Mr.	H a t t l whose name a p p e a r ?	n o w h e r e
or1	I t .

Refore

Hr.

H a t t l ' s

c 3 s e

was

r e - o p e n e d .

c o u n s e l

for

C e l t e : :

t e n d e r e d a

l e t t e r from

Hr.

Wehhe's

sollcltors t o

C a l t e x .

T h e

l e t t e r

s a l d t h a t

t h e

s o l i c i t o r s

h a d

h e e n

i n s t r u c t e d

t h e l r

L4.

client to

a d v i a p C 8 l t ~ x t h a t he

uished t o assiqn

his

i n t e r e s t

u n d e r

the

cur ren t

frnnchrse

a g r e e m e n t

t o

H r .

Hat t i

'uho

i s , ac.

you

a r e

aware ,

f u l l y

e n q a q c d

t h e business

a t t h e

s ~ ~ h j e c t ,

s e r v i c e

s t a t a o n ' .

C a l t e x

r e f u s e d

a g r e e

t o

t h e

p r o p o s 3 l .

T h e r e

a160

e v i d e n c e

from

M r .

H a r a c a t

t h a t

h e

uas n e q o t l 3 t l n q

b e h a l f

o f

a company 1ri u h i c h h e and

h ~ s

tmrother

uere

s a i d t n

s h a r e h o l d e r s f o r

t h e

p u r c h a s e

o f

t h e

service

s t a t i o n .

C o u n s e l

f o r Calte.: s o l l c l t o r s and

r e l i e d on

t h e c i r c u l a r

l e t t e r ,

t h e l e t t e r

f r o m

t h e

Mr.

B a r a c a t ' s

e v l r l e n c e

c l e a r

i n d l c a t 1 o n s

t h a t

Fir.

H a t t l

h a d

n o

i n t e r e s t

I n

t h e

b u s i n e s s

o r

the

l e a s e .

T h e

f a r t

t h a t t h e

G h s l e b s msy

h a v e

h a d

S u c h

a n

i n t e r e s t

uas

not,

t o t h e

p o i n t .

T h l s

e v i c l e n c e

d t d

n o t

e s t a b l t s h

any

l n t e r e s t

t h c

b u s l n e 5 s

o n

t h e

p a r t of

Hr.

Hst t l .

Mr.

K s n ' s

r e f e r e n c e

d l d

n o t

establish

t h a t

m a t t e r

e i t h e r .

All

e l s e

u3s

c a r l s i s t e r l t

u i t h H r .

H a t t i ' s own

s t a t e m e n t in

a f f l d a v l t of

September

196G

1rl

u h i c h h e S t r s t h f l e l d

c ! e s c r i b e d

h l m s e l f

m a n a q e r

t h e

S o u t h

t h e

u f

s e r v i c e

s t a t l o n .

T h e

q u e s t i o n

u h i c h

h s s

t o

d e c i d e d

1 5

w h e t h e r

3 n y t h l n q

was

s s l d

t o

Mr.

Man

b y

Kr.

Hstt l or t h e

G h a l e b s ,

p a r t l c u l s r l y

Mrs.

G h a l e t n ,

a b o u t

Mr.

H a t t i

t a k 1 n . j

o v e r .

A n

a n a l y s l s

o f

some of t h e

e a r l l e r

c o n v e r s a t i o n s

u h l c h

a r e

r e l i e d

u p o n

b y

Mr.

H a t t l

s h o w =

t , ha t , eve r t c o n s i s t e n t

t h e y

a r e

a c c e p t e d

a t

t h e l r

f a c e

v a l u e .

t h e y

3 r e

u l t h

H r .

H a t t i

t a k i n g

o v e r

b e h a l f of

Mr.

WehbP

r 3 t h e r

t h a n

o n

b e h a l f

h i m s e l f .

T h l s

u h 3 t

Hr.

Man

said

h e

uas

t o l d tny

t h e

G h a l e b s

a n d

Mr.

H a t t l .

I h a t

a l s o

c o n s l s t e n t

u i t h t h e

l e t t e r

u r i t t e n by Mr.

Wehtre's

s o l i c i t o r s .

t h e c ~ r c u l a r

6 5 .

l e t t e r

t o

c u s t o m e r s rnd Mr.

B I F I C l l t ‘ S

ev idence.

n o t t h i n k

t h s t

t h e

p a y m e n t

t h e invoices

Wshbc

and

H a t t i P e t r o l e u m P t y

L l n t l t e d

a f f e c t s

t h i s

r o n c l u s i o n .

The

i n v o i c e s

u e r e

a d d r e s s e d

o n l y

t o

H r .

Wehbe.

a c c e p t Hr.

Wan’s

e v l d e r t c e

t h a t

h e

d ~ d

not.

n o t i c e t h e

name

t h a t company

t he

ChequeS.

H a v i n g

g i v e n

t h e

m a t t e r

d u e

c o n s t d e r a t i o n ,

have

reached

thP

r o n c l u s l o n

t h a t

I o u q h t

n o t

a ~ c e p t

Mr.

H e t t l ’ s

e v i d e n c e

a n d

Mrs.

G h a l e t n ‘ s

e v i d e n c e

i n s o f a r

a s

their

e v l d e n c e

s u g g e s t s

t h a t

Hr.

Harl

w35 t o l d

t h a t

Hr.

H a t t l

w8s

a c q u ~ r i n g

t h e

Ghslebs’

I n t e r e s t lrt

t h e

b u s i n e s s .

p r e f e r

H r .

H a n ’ s

e v t d e n c e

o n

t h i s

h a t t e r

becaucFa

1s more i n accordance

u i t h t h e

p r o b a b i l i t i e s .

I c o n f e s s

t h a t

h a v e

n o t

r e a c h e d

t h a t

c o n c l u s i o n

e a s i l y .

un impressed w i th

M r .

H a n ’ s

e v l d e n c e

c o n c e r n l n q

hls

knowledge

of t h e

G h a l e b s ’

l n t e r e s t

i n

b u s i n e s s .

t h e

H l s

l e t t e r

c o n s l s t e n t

u i t h

Crtowledqe

a l l a l o n q .

N e v e r t h e l e s s .

n o t t h i n k

t h a t I

s h o u l d

a l l o w t h a t

c o n s i d e r a t i o n

t o

d e f l e c t

f r o m

n ~ a k i n g

t h e

f l n d l n q

t h 3 t Hr.	Man d i d	n o t	k n o u	t h a t	H r .	H a t t i	h a d	some	i n t e r e s t i n t h e
b u s i n e s s .

C o u n s e l

f o r

Hr.

H 3 t t i r e l i e d

o n

a s p e c t s

t h e

d o c t r l n e

e s t o p p r l

s u p p o r t

o f

h1s

case.

However,

I an) s a t i s f i e d

t h a t

h i s

s u ‘ c ~ a i s s l o n s

i n

t h s t

r e q a r d

must

f a i l l ~ r t l e s s it

b e

f o u n d

t h a t

C a l t e : : ,

t h r o u g h

Mr.

Han,

h a d

P n o w l e J g e

o f

Hr.

H a t t i ’ s

I n t e r e s t .

F o r

t h a t

r e a s o n

I r e j e c t the submisslons based

o n

e s t o p p e l .

may

he, as

c o u n s e l

f o r

C a l t e x

s u b m i t t e d ,

t h a t

t h e

s u b m i s s i o n s

s h o u l d

b e

r e J e c t e d

f o r

o t h e r

r e a s o n s

a s

u e l l ;

and

t h a t th1s

uould

GC) .

be so

even if

i t ucrc e s t s b l i n h e d

t h a t

C a l t s x

had

h a d

b n o u l r d q e

x n t e r s s t

o f

Hr.

Hat t i

a n

t h e

business.

I n

t h p

r i r c u m e t a n c e s .

1 t

i s

u n n e c e s s a r y

t o

c o n s l d e r

t h o s e

c u b m r s e l o n s

a n d

e x p r e s s

n o

v ~ e u

upon them.

l i ,

f o l l o w s

f r o n l

u h s t

1 h a v e

s a i d t h a t Mr.

H a t t , i ’ s

a p p l r c a t l o n

m u s t

r e a l e r t e d

b e c a u s e

h e

n o t

f r a n c h l s p e o f

t h e

S o u t h

S t r a t h f l e l d

s e r v i c e

s t a t i o n .

h a d

n o

s t a r l d l n g

t o

b r i n g

h i s

a p p l i c a t i o n

No.

G422

1 9 8 6 .

T h e r e

r e m a i n s

t h e

q u e s t i o n

u h e t h e r

i s , w ~ t h l n

t h e mesnlng

p a r a .

l G ( G ) ( b )

o f

t h e

Act,

lust

a n d

e q u l t . a b l e

t h a t

t h e

f r a n c h l s e

a g r e e m e n t s

( t h e

] e s s e

a n d

t,he

s u p p l y

c o n t r s c t )

b e

t e r m l n s t e d .

r e a c h i n g

c o n c l u s i o n

o n

t h a t

m a t t e r

nped

t o

t=Ike

i n t o

e c c o u n t

r e l e v a n t

a l l

r i r c u m s t s n c e s .

The

f r a n c h ~ s e e

i s Mr.

Wehtte.

T h e c o n s ~ d e r a t i o n s

u h i c h

a p p l y

i r l h 1 5 c a s e a r e

t h e sanle

a p p l i e d

1r1

the c 3 5 e

t h e

C h l J l l o r a

s e r v i c e

s t a t i o n .

3 m c l e s r l y

t h e o p i n l o n

t h a t

i t

I S

J u s t

and

e q u I t e t l l e

t h a t

t h e

f r a n c h l s e

a g r e e m e n t s

t e r m i n a t e d .

c o n c l u s i o n

t h a t

r e g a r d

mskes

i t

l u n n e c e s s a r y

t o

c o n s i d e r

s u h s t s n t I s 1

Lody

o f

e v i d e n c e

w h i c h

wes

led

r e l a t i o n

t o

3 l l e g e d

abuse

b y

M r .

W e h t e

a n d

o t h e r s

p r i c i n g

a s s i s t a n c e

s c h e m e

w h i c h

C a l t e x

m e d e

a v a i l a b l e

t o

i t s f r a n c h i s e e s

i n times

severe

p r i c e

c u t t i n g

o t h e r

service

s t a t i o n s

i n t h e a r e a .

T h i s

e v i d e n c e

w a s

r e l l e d

u p o n

b y

C a l t e x

t o

s u p p a r t

i t s

case t h s t I t .

was ~ ~ s t

a n d

e q u i t a b l e

t h a t

t h e

f r a n c h i s e

a q r e e m e n t s

r e l a t i n q

t o

h o t h

s e r v i c e

s t a t i o n s

s h o u l d

t e r m i n a t e d .

t h e v l e u

t h s t

G7.

t a k e

t h e

m a t t e r ,

. r t

u n n e c e s s a r y

t o

r e a c h

c o r m l u s i o n s

orl

t h a t

m a t t e r

a n d

n o t .

F i n a l l y ,

s h o u l d s a y

t h a t .

1rl t h e

l i g h t

t h e

f ~ r t d l n q a

h a v e made

c o n c e r n i n g Hr.

H a t t l ,

u o u l d seem

t o me

t h a t

t h e r e

1c.

n o

c o n s i d e r a t i o n

b s s e d

or1

h ~ s

p o s i t ~ o n

u h i c h

c o u l d

m ~ l i t a t , e

a g s i r ~ s t t h e conclusion

b e i n q

r e a c h e d

t h a t

t h e

f ra r t ch l se

aq reemen t .

s h o u l d

t e r m i n a t e d .

M y

c o n c l u s i o n s

t h e r e f o r e

a r e

a s

f o l l o w s : -

Ground= 1. 2 , 3 end 5

of t h e

n o t l c e

s e r v e d

l n

r e l a t l o r l

t n

t,he

C h u l l o r a

s e r v i c e

s t a t i o n

h a v e

b e e n

msde

ou t .

Grol.lnds 1 t o 5

inclusive o f

t h e

n o t i c e

s e r v e d

1rt

r e l s t l n r ~

t,n	t h e	S o u t h	S t r a t h f i e l d	service	s t a t i o n	h a v e	b e e n	made
o u t .

Just 3rd

e q u l t s b l e .

h a v i n g

r e g a r d

t o

a l l

t h e

c i r c u m s t ~ n c e s , t h e t	t h e	r e l e v s n t	f r a n c h l s e	a q r e e m e n t s	h r
t e r m i n a t e d .

A .

H r .

H a t t l i s

n o t a

f r a n c h i s e e

t h e

S o u t h

S t r a t h f l e l d

s e r v i c e s t a t i o n .

5 .

E a c h

a p p l i c a t i o n

s h o u l d

L e

d l s m l s s e d .

H r .

H a t t i ’ s

c r o s s - c l s l m

h r o u g i t t

1rl

e p p l \ c 3 t i o n

No.

G358

o f

1986

should

b e d l s m l s s e d .

7 .

O r d e r s

s h o u l d

b e

made

t o

q i v e

e f f e c t

t o

t h e

c r o s s - c l a l m s

b r o u g h t	b y	C a l t e . :	i n a p p l l c s t l o n s Nu.	G357	ancl	G358	o f
1386.

8 .

T h e

a p p l i c a n t s

s h o u l d

p a y

t h e

e n t l r e t y

C a l t e x ’ s

c o s t s

68.

of each application and cross-claim.

I do not propose today to make formal orders.

I shall stand

the

matters

over

to enable

the

parties

and

their

leqal

representatives to consider what I have said. When it

is again

in the list counsel for Caltex are to brinu	in short minutes of
order to qive effect to my decision.

I certify that this and the 67

preceding

pages are a true copy of the reasons for

judgment herein of The Honourable

Mr Justice Sheppard. &L&.-uw

Associate

Dated +

.&ah&,, / 9 ~ d

Counsel for the Applicants,

W.A. Wehbe Pty Limited and

Mr. W.A. Wehbe:	Mr. R.G. Craiuie and Mr. D.L.
Warren

Solicitors for those	Applicants:	Messrs. Karavias,	Katralis
and Co.

Counsel for the Applicant,

Mr. G. Hatti:

Mr. R.K. Eassie

Solicitors for Mr. G. Hatti:

Messrs. Treanor & Bartels,

West Ryde

Counsel for the Respondent.

Caltex Oil (Australia) Ptg

Limited:	Mr. D.E. Horton. Q.C. with
Mr. C.A. Sweeney and Mr. P.
Neil

69 .

Hrssrr. Hoorr L. Pevrnr

Dates

h e a r i n g :

8 ,

9 ,

10,

It, 17 and 31

nct,ober

1986

[1986] FCA 638

24 Dec 1986