Reddy Cut Garments Pty Ltd & The Trustees of the sisters of St Joseph v Housewives United Buyers Co-Op [1980] FCA 23

a 25 Nor Fee Distemutien

IN THE FEDERAL COURT OF AUSTRALIA) )

NEW SOUTH WALES DISTRICT REGISTRY) No. G74 of 1979 - ) GENERAL DIVISION )

BETWEEN:

HOUSEWIVES UNITED BUYERS CO-OPERATIVE LIMITED

Plaintiff

AND:

REDDY CUT GARMENTS PTY. LIMITED

Firstnamed Defendant

AND:

THE TRUSTEES OF THE SISTERS OF ST. JOSEPH

Secondnamed Defendant

CORAM: Bowen C.J.

15 February 1980.

REASONS FOR JUDGMENT

BOWEN C.J.: This is a matter in which the parties require an urgent decision. I propose to give my decision immediately.

The proceedings were commenced by the Housewives United buyers Co-operative Limited - I shall refer to them as Housewives Co-operative - against Reddy Cut Garments Pty. Limited - I shall

refer to them as Reddy Cut - and the Trustees of the Sisters of

St. Joseph - I shall refer to them as St. Josephs - by application accompanied by a statement of claim, which was later amended, seeking an order restraining the respondents from carrying out or acting 1n accordance with the terms of a certain contract, arrangement or understanding asking for damages, and, also asking for an order restraining St. Josephs from allowing or permitting the use of its premises for the sale of school uniforms.

It was alleged in the amended statement of claim that in 1978 St. Josephs, at schools which it operated at Revesby and Milperra, entered into a contract, arrangement or understanding with Reddy Cut whereby Reddy Cut would supply school uniforms to pupils and parents of pupils at the said schools through school shops conducted on behalf of St. Josephs. It was also said that the contract, arrangement or understanding in question had the purpose and effect of substantially lessening competition.

There was an addition in the amended statement of claim to the effect that St. Josephs, being a corporation, was in a position as operator of schools at Revesby and Mailperra substantially to control a market for school uniforms and in the years 1978 and 1979 took advantage of the power in relation to that market for the purpose of eliminating or substantially damaging the Housewives Co-operative, being a competitor in that market.