M. & G. Wehbe Brothers Pty Ltd v Caltex Oil (Australia) Pty Ltd [1986] FCA 260
Federal Court of Australia
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NOT FOR GENERAL DISTRIBUTION
IN THE FEDERAL COURT OF AUSTRALIA )
)
NEW SOUTH WALES DISTRICT REGISTRY } No. G258 of 1936
GENERAL DIVISTON
EETWEEN:
)
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M. & G. WEHBE BROTHERS PTY. LIMITED
Applicant
CALTEX OIL (AUSTRALIA) PITY. LIMITED
Respondent
MINUTES OF ORDER
Judge making order: Beaumont, J.
Date order made:
Where made: Sydney
THE COURT ORDERS THAT:
3 July 1986
1. Note that the applicant renews its undertaking as
to damages.
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Note that the
respondent renews its existing
undertaking to the Court until further order.
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proceedings.
Reserve liberty to apply cn two days' notice.
Costs of this interim application be costs in the
Note: Fattlement and entry of orders 15 dealt with in
Order 36 of the Federal Court Rules.
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, NOT FOR GENERAL DISTRIBUTION
IN THE FEDERAL COURT OF AUSTRALIA )
)
: NEW SOUTH WALES DISTRICT REGISTRY ) No. G258 of 1986
) .
: GENERAL DIVISION ) -
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' BETWEEN : M._& G. WEHBE BROTHERS PTY. LIMITED
: Applicant
7 AND: CALTEX OIL (AUSTRALIA) PTY. LIMITED
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Respondent
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CORAM: Beaumont, J.
DATED: 8 July 1986
REASONS FOR JUDGMENT
The applicant seeks interlocutory relief that, pending
the final hearing of these proceedings, the respondent continue
to deliver to the applicant petroleum omroducts to the retail
outlet conducted by the respondent at the premises situated at
110 Canterbury Road, Bankstown.
In his affidavit sworn 29 June 1986. Mr. M.N. Wehbe, a
director of the applicant. says that in early May 1986, the
respondent offered to enter into a Reseller Supply Contract and
Collateral Agreement for the supply of petroleum products. This
contract and this agreement were intended to renew similar
previous arrangements which were about to expire by effluxion of
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time. On 13 May 1986, the applicant executed a counterpart of
these agreements which were to subsist for a period of one year
at least. However, by letter dated 16 June 19846. the respondent
informed the applicant that it did not propose to renew the
existing supply arrangements. _
The applicant's case is that the respondent has engaged
in misleading or deceptive conduct within the meaning of s.52 of
the Trade Practices Act 1974 (the Act). Alternatively, the
applicant seeks to invoke the accrued jurisdiction of the Court
and claims under the general law an order for specific
performance of what it alleges to be a contract to supply
petroleum products.
The matter is urgent and, accordingly, I have arranged
for it to be heard. on a final basis, on 21 July. Since I will
be hearing the matter myself, I propose to deal with the matters
hejefly. In doing this, I acknowledge the assistance I have
obtained from the written submissions forwarded by counsel.
In my opinion, notwithstanding the futurity of the
representations relied upon (cf. s.51A of the ! Act - iriserted by
Act No. 17 of 1986, 5.21), a "serious question to be tried"
arises as to whether the conduct of the respondent, taken as a
whole, was likely to mislead the applicant. Given that
conclusion, the suggestion by the respondent that the applicant
was merely fabricating jurisdiction by raising s.52 of the Act
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should be rejected, at this stage at least.
The respondent relies also on a number of discretionary
defences. One ig; that the respondent asserts that the applicant
is somehow involved in dealing in stolen petrol. However, at
this point of time, whilst I note that the application for
interim relief came forward at short notice, the respondent has
adduced no evidence yet to support the assertion. The matter was
put to Mr. fichbe in cross-examination but he denied the
suggestion.
Another discretionary defence is said to arise from the
nature of the relief sought: it may be said to be tantamount to
an 'attempt to obtain specific performance of an agreement calling
for the continuous supervision of its performance by the-Court.
It is suggested that the Court should decline to exercise its
discretion under 3.87 of the Act for reasons similar to those
which would lead a Court of Equity to decline to interfere in
such a case. There is obviously room for argument on the point
but I must hold that there is. at least, a serious question to be
tried in this respect also.
Apart from the stolen petrol matter, in respect of which
no evidence has been adduced by the respondent. the balance of
convenience suggests that interim relief should te granted in
order to maintain the status quo. The respondent has already
proferred a suitable undertaking to the Court and has indicated
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that. if the Court were minded to grant an interlocutory
injunction, the respondent would prefer, instead, to renew its
undertaking.
I propose to make the following orders:
1. I note that the applicant renews its undertaking as to
damages.
2. I note that the respondent renews its existing
undertaking to the Court until further order.
3. I reserve liberty to apply on two days' notice.
4. I order that costs of this interim application be costs
in the proceedings.
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