Australian Competition and Consumer Commission v Samton Holdings Pty Ltd [2002] FCAFC 4; [2002] FCA 62

Australian Competition and Consumer Commission v Samton Holdings Pty Ltd [2002] FCAFC 4 Australian Competition and Consumer Commission v Samton Holdings Pty Ltd [2002] FCA 62

NOTE: CHANGES TO THE MEDIUM NEUTRAL CITATION (MNC) The Federal Court adopted a new medium neutral citation (FCAFC) for Full Court judgments effective from 1 January 2002. Single Judge judgments will not be affected and will retain the FCA medium neutral citation. The transitional arrangements are as follows: · All Full Court judgments delivered prior to 1 January 2002 will retain the FCA medium neutral citation.

· All Full Court judgments delivered between 1 January 2002 to 30 April 2002 have been assigned parallel medium neutral citations in both the FCA and FCAFC series.

· All Full Court judgments delivered from 1 May 2002 will contain the FCAFC medium neutral citation only.

FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Samton Holdings Pty Ltd [2002] FCA 62

TRADE PRACTICES - unconscionable conduct according to the unwritten law - statutory prohibition - Trade Practices Act 1974 (Cth)s 51AA - principles - special disadvantage - unequal bargaining power - experienced businessman - - relevant factors in assessment of conduct - test of unconscionable conduct - towards extreme end of the scale of unreasonable conduct - whether error of law - whether scope of unconscionable conduct expanded by statute - purchaser of business - assignment of existing lease - option to renew - failure to exercise option within time - landlord refusing to extend time - landlord requiring premium for provision of new lease - payment structure to avoid contravention of key money legislation Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) s 9, s 3 Trade Practices Act 1974 (Cth) s 51AA Thessaly Pty Ltd v Pelworth Pty Ltd (1991) 6 WAR 253 cited Blomley v Ryan (1956) 99 CLR 362 cited Antonovic v Volker (1986) 7 NSWLR 151 cited The Commonwealth v Verwayen (1990) 170 CLR 394 cited Harry v Kreutziger (1978) 95 DLR (3d) 231 cited Burt v Australia and New Zealand Banking Group Ltd (1994) ATPR (Digest) 46-123 cited The Commercial Bank of Australia Limited v Amadio (1983) 151 CLR 447 cited Lange v Australian Broadcasting Corporation (1997) 189 CLR 520 cited Lipohar v The Queen (1999) 200 CLR 485 cited Legione v Hateley (1983) 152 CLR 406 cited Waltons Stores (Interstate) Limited v Maher (1988) 164 CLR 387 cited Stern v McArthur (1988) 165 CLR 489 cited Taylor v Johnson (1983) 151 CLR 422 cited Louth v Diprose (1992) 175 CLR 621 cited Baumgartner v Baumgartner (1987) 164 CLR 137 cited Bridgewater v Leahy (1998) 194 CLR 457 cited Garcia v National Australia Bank Ltd (1988) 194 CLR 395 cited Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (No 2) (2000) 96 FCR 491 cited CG Berbatis Holdings Pty Ltd v Australian Competition and Consumer Commission [2001] FCA 757 cited Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 185 ALR 1 cited Olex Focas Pty Ltd v Skodaexport Co Ltd (1996) 3 VR 380 cited CTN Cash and Carry Limited v Gallaher Limited [1994] 4 All ER 714 cited