Serhan, C. & Anor v. Ampol Petroleum Ltd [1985] FCA 1

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CATCHWORDS

Petroleum Retail Marketing Franchise Act 1980 -

franchise agreement - refusal to renew - negotiations by franchisor for an agreement to sell interest - in good faith - in normal course of business - interest - s.17(8) notice in writing of decision - term of agreement deemed to be extended - term sought to be further extended by reliance on s.17(4) - whether any extensions cumulative.

Petroleum Retail Marketing Franchise Act 1980 s.3, s.17.

CHARLIE SERHAN & GEORGETTE SERHAN v. AMPOL PETROLEUM LIMITED

No. NSW G187 of 1984

McGREGOR J. SYDNEY

9 January 1985.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION

No. NSW G187 of 1984

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BETWEEN

CHARLIE SERHAN & GEORGETTE SERHAN

Applicants AND AMPOL PETROLEUM LIMITED

Respondent

McGregor J. Date: 9 January 1985

REASONS FOR JUDGMENT

CHARLIE SERHAN AND GEORGETTE SERHAN tapplicants) have, as tranchisees. ina Franchise Agreement dated 16 June 1981 but which commenced on 1 June 1981 and was expressed to expire on 31 May 1984, carried on at 321 Gardeners Road, Rosebery, New South Wales, (the premises) a service station and motor fuel vending business. Those premises are owned. and the motor fuel supplied

to the applicants, by AMPOL PETROLEUM LIMITED (respondent).

The events preceding this litigation are to be

considered against the background that the respondent regularly

appraised its property, at least in New South Wales, with the object of maximising return on investment thereon. After reappraisal, a list of sites considered suitable for disinvestment (a word [ understand to include a sale of the premises and dispossession of the franchise) was drawn up. Decisions in that regard were made in the light of the respondent's overall marketing strategy. It was often necessary to sell petrol outlets (of which the premises was one) because