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Limited Distribution
CATCHWORDS
TRADE PRACTICES — misleading or deceptive conduct - respondents
establishing same business of applicants in an area where
applicants have no reputation or goodwill - applicants' business
name unregistered - strong evidence of infringement by
respondents of applicants' copyright. -
INJUNCTIONS - interlocutory — whether prospects of final success
a relevant factor in balance of convenience where in a commercial
sense the interlocutory application will determine the issue
finally.
INJUNCTIONS — interlocutory — mandatory - high degree of
assurance required.
Business Names Act 1962-1979 (Qld.)
Trade Practices Act 1974 s.75B
LINDSAY WILLIAM RONALD & ANOR. V. BRETDAY PTY. LIMITED & ORS.
QLD NO.G39 of 1987
SPENDER J.
BRISBANE,
24 APRIL 1987 —~
29 aR [9g7
FEDERAL cour
. AUSTRALIA. CE
PRincip,
REGIS pene
aott
IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY
GENERAL DIVISTON
QLD. G39 of 1987
ee ee
BETWEEN :
LINDSAY WILLIAM RONALD and YVONNE LOWRY
Applicants
BRETDAY PTY. LIMITED, NORMAN EDWARD STOECKEL,
JANINE MAREE ROWE, RODNEY NORMAN STOECKEL and MOYA
HOLMES
Respondents
MINUTE OF ORDER
JUDGE MAKING ORDER: SPENDER J.
DATE OF ORDER: 24 APRIL 1987 ,
WHERE MADE: BRISBANE
THE COURT ORDERS THAT:
1. The application for injunctive relief he
refused.
2- The first, second and fifth respondents
pay the costs of the application.
NOTE: Settlement and Entry of Orders is dealt with in Order
36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALTA
QUEENSLAND DISTRICT REGISTRY
GENERAL DIVISTON
QLD. G39 of 1987
BETWEEN :
LINDSAY WILLIAM RONALD and YVONNE LOWRY.
Applicants
BRETDAY PTY. LIMITED, NORMAN EDWARD STOECKEL,
JANINE MAREE ROWE, RODNEY NORMAN STOECKEL and MOYA
HOLMES
Respondents:
DATE OF HEARING: 16 APRIL 1987
DATE JUDGMENT DELIVERED: 24 APRIL 1987
COUNSEL:
for the applicants Mr. J.P... Rivett
for the respondents Mr. J.C. Sheahan
T. MACDERMOTT
ASSOCIATE TO SPENDER J.
SPENDER J.
BRISBANE
24 APRIL, 1987.
rm
IN THE FEDERAL COURT OF" AUSTRALIA
QUEENSLAND DISTRICT REGISTRY QLD. G39 of 1987
GENERAL DIVISTON
BETWEEN :
LINDSAY WILLIAM RONALD and YVONNE LOWRY
Applicants
BRETDAY PTY. LIMITED, NORMAN EDWARD STOECKEL,
JANINE MARER ROWE, RODNEY NORMAN STORCKEL and MOYA
HOLMES
Respondents
SPENDER_J.
BRISBANE
24 APRIL, 1987.
REASONS FOR JUDGMENT
The applicants seek the following interlocutory orders:—
1. An order restraining the respondents from
using in any way in the course of or in
connection with a business or trade the name
"Word of Mouth Public Relations/Promotions" or
any name which includes the words "Word of
Mouth" or any other name which is
substantially identical with or deceptively
similar to the name "Word of Mouth Public
Relations/Promotions" or "Word of Mouth".
2. An order that the first respondent do
forthwith lodge with the Commissioner for
Corporate Affairs Queensland, a statement of
the kind which is ordained by Section 12(3) of
the Business Names Act 1962-1979 of the said
State and in the form prescribed notifying the ~~ - "
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hw
TO ea
said Commissioner that it has ceased to carry
on business in the said State under the
business name "Word of Mouth Public
Relations/Promotions"..
3. An order that the respondents do forthwith
destroy upon oath all signs, notices,
promotional or advertising material of any
kind whatsoever, letterheads, business cards,
papers or documents of any description
whatsoever in their possession or in the
possession of any of their servants, agents or
suppliers which include the words "Word of
Mouth Public Relations/Promotions" or "Word of
Mouth" or which have on them an emblem being a
line drawing of a rose positioned diagonally
across the page with the bloom at the top left
hand side and superimposed thereon a digital
telephone inside a rounded black square.
4. An order that. upon written request being made
by the applicants the respondents and each of
them do forthwith notify the said Commissioner
for Corporate Affairs of their consent to the
registration pursuant to the provisions of the
Business Names Act 1962-1979 of a business
name "Word of Mouth Public Relations" in the
names of the applicants or their nominees.
The first respondent, Bretday Pty. Limited, (""Bretday")
was incorporated on 28 May 1982 and, from 6 April 1985, its
registered office has been Suite 5, 10 Strathaird Road, Bundall
on the Gold Coast.
On 1 November 1986, Bretday applied for registration of
the business name "Word of Mouth Public Relations/Promotions"
pursuant to the Business Names Act 1962-1979 (Qld.). The
application states the nature of the business to be business
promotions. Originally, the place of business in Queensland was
said to be Argyle Place, Argyle Street, Breakfast Creek,.
Brisbane, but that place of business has been altered to Office
3, 27 Stoneham Road, Stones Corner, Brisbane.
it
'
if'
3.
The application dated 1 November 1986, signed by the
second respondent, the Managing Director of Bretday, states that
the business commenced on 11 October 1986. The business name was
registered on 1 December 1986.
The third and fourth respondents' are directors of
Bretday. Norman Edward Stoeckel, the second respondent, in his
affidavit says that the third and fourth respondents, Janine
Maree Rowe and Rodney Norman Stoeckel, are directors of Bretday
but "have at no stage been personally involved in the running of
the business of 'Word of Mouth Public Relations'." There is no
other evidence to suggest that they have been involved in any way
in the events the subject of these proceedings. Counsel for the
applicants submitted that it is an irresistible inference from
their being directors of Bretday that the third and fourth
respondents are caught by the provisions of s.75B of the Trade
Practices Act 1974.
Section 75B provides:-
"A reference in this Part to a person involved in a
contravention of a provision of Part IV or V shall
be read as a reference to a person who -
(a) has aided, abetted, counselled or procured
the contravention;
(b) has induced, whether by threats or promises
or otherwise, the contravention;
(c) has been in any way, directly or indirectly,
knowingly concerned in, or party to, the
contravention; or
(d) has conspired with others to effect the
contravention."
vehaapows -
4.
Concerning this provision, Gibbs C.J. in. Fencott v.
Muller (1982-1983) 152 C.L.R. 570, at p.584; (1983) 57 A.L.J.R.
317, at p.321, said:—
"By the combined provisions of ss.. 75B and 82, the
Parliament has made natural persons liable in
damages for a contravention by the corporation
only if they have been involved in the manner
described by s. 75B, which, in my opinion, refers
to a close rather than a remote involvement in the
contravention. In the most general words of
$.75B, those of par.(c), the word 'knowingly'
significantly confines the operation of the
provision."
In Yorke v. Lucas (1983) 80 F.L.R. 143, the Full Court
of the Federal Court, constituted by Bowen C.d., Lockhart and
Beaumont JJ., said at p.152:-
"The phrase 'knowingly concerned in' (s.75B(c))
plainly requires a mental element, namely,
knowledge of the relevant facts: see Mallan v. Lee
(1949) 80 C.L.R. 198 at 211.
f
The act of conspiring with others to effect a
contravention (s. 75B(d)) necessarily involves an
element of intention, requiring an agreement
between two or more people to effect a proscribed
act.
We can discern no reason why Parliament would have
intended that a section which renders natural
persons liable for a contravention by a
corporation should require some mental element or
absence of innocence in every case to which it
refers except one which itself requires in its
first limb that the person was 'knowingly'
concerned in the contravention. This is
especially so when the word 'party' is found in
accessory provisions of criminal legislation such
as s. 5 of the Crimes Act 1914.
The words 'party to the contravention' necessarily
connote, in our view, that a person assents to or
concurs "in the conduct which constitutes the
contravention. He must therefore know or be aware
of the essential facts or matters which must he
proved to establish the "contravention."
y
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*
Vewe
And later the Court said:—
"In our opinion, the words 'party to the
contravention' refer to a person who participates
in, or assents to the contravention in question.
To be regarded as participating in or assenting,
such a person must actually or constructively be
aware of the elements constituting the
contravention. To our minds, it is not sufficient
to render an individual. liable if he is shown to
be aware of some only of those elements. Where
the contravention in question relates to engaging
in trade or commerce in conduct that is
misleading, one of the elements involved is that
the conduct is misleading. If a person sued under
s. 82 for damages as a person involved in the
contravention is umaware of the essential facts
and matters constituting the contravention, then
he lacks knowledge of an essential element of the
contravention. He cannot, in our view, in those
circumstances, be regarded as a party to the
contravention (cf. Guthrie v. Doyle Dane &
Bernbach Pty.Ltd. (1977) 30 F.L.R. 116 at 119-120,
but see Taperell, Vermeesch & Harland Trade
Practices and Consumer Protection (2nd ed),
p.604)."
On appeal to the High Court, (Yorke v. Gucas (1985)
C.L.R. 661) the joint judgment of Mason A.C.J., Wilson, Deane and.
Dawson JJ., included at p.670:-
"There can be no uestion that a person cannot he
q a P .
knowingly concerned in a contravention unless he
has knowledge of the essential facts constituting
the contravention.
In our view, the proper construction of par. (c)
requires a party to a contravention to be an
intentional participant, the necessary intent
being based upon knowledge of the essential
elements of the contravention."
Brennan J. was of the same view. He said, at p.673:~-
"The provisions of s. 75B should therefore be
construed as though they were defining the persons
criminally liable. for contraventions of the'
6..
provisions of Pt.IV and s. 52 and for offences
created by the other provisions of Pt. V."
And later,
"Construing s. 75B in that way, civil liability is
imposed only on those who, if the particular
contravention in Pt.IV or Pt.V were an offence,
would be held criminally liable for it. Civil
liability is thus imposed only on those who engage
in the conduct prescribed by s. 75B with the state
of mind which the criminal law calls mens rea."
In my opinion, it is impermissible to infer that a
person is knowingly concerned in a contravention by a company of
the provisions of the Trade Practices Act 1974 or has aided,
counselled, abetted, procured, induced, or has conspired with
others to effect a contravention from the mere fact that that
person 1s a director of that company.
The fifth respondent is an employee of the first
respondent and has actively engaged in its activities. There is
some evidence that she has seriously slandered the business of
the applicants, but no relief is sought directly on this account.
The applicants, from September 1986, operated a
telephone canvassing -business under the name "Word of Mouth
Public Relations" from premises sub-leased from the second
respondent on the Gold Coast. The business name under which this
business operated was unregistered,
The applicants describe the nature of the business in
this way:-
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7.
"Ours is a promotional and marketing business. We
reach an agreement with one er two local
businesses normally involved in the hair and
beauty, printing or automotive services whereby'
they offer a package to potential customers at a
reduced rate. The standard package which we seek
to negotiate is- a combination of hair treatment
and. beauty treatment totalling $300.00 in value
and this is offered to potential' customers for
$50.00. We canvass telephone subscribers in a
particular area and sell the package for $50 which.
is a fee payable to us. No other fee-is payable.
by the business. The benefit provided to the
business is the additional custom they obtain from
the new customers we attract and the probability
that these customers will become regular customers
of the business."
In conducting this business, a survey of the area for
appropriate businesses is made, agreements entered into with
businesses for the marketing of services on their behalf, and a
standard agreement 1s signed by the parties. The applicants then
organise the printing of promotional brochures setting out the
services on offer. The brochures are consecutively numbered
1-300 so a proper record can be maintained of the sales made;
the brochure printed by the applicants has a logo, being a line
drawing of a rose with a bloom on the top left hand side,
superimposed on which is a digital telephone enclosed in a
rounded black square. Staff are then employed as telephone
operators to telephone members of the public in the promotion of
the offer.
At the present time in the conduct of the business at
Mooloolaba on the Sunshine Coast of Queensland, the applicants
have ten telephones operating from 4.30 p.m. to 9.30 p.m. Monday
to Friday, and Saturday morning from 9.30 a.m. to 1.30 p.m.
After the 300 sales have been made, the same procedure
is followed in respect of different businesses. The technique
they say has been developed by themselves and has been used
successfully and profitably by them since 1983.
The applicants initially commenced operating in Sydney
under the name "Sungrid Market Developers", which was a
registered business name. The applicants operated the business
in Sydney until November, 1985, when they left and commenced
business in Melbourne under the business name "Word of Mouth".
That business was operated for approximately six months in
Melbourne, whereupon the applicants returned to Sydney in about
dune 1986. The Sydney business was sold during September 1986
for $25,000.00.
In September 1986, the applicants commenced business
under the name "Word of Mouth Public Relations" on the Gold Coast
in premises subleased from the second respondent at 10 Strathaird
Road, Bundall, using the same brochures that had previously been
devised.
At that time, the second respondent was operating a
publishing business from that address and the fifth respondent
was operating a publishing business called "Buyers Guide" out of
the same address.
The applicants say that in October 1986, they had a
conversation at the Bundall office with Norman Edward StoeckeL -
and with Moya Holmes, the second and fifth respondents. ¥vonne
- ae
Sg.
Lowry in her affidavits says that she told the respondents that
the applicants intended to commence business in Brisbane as soon
Z as they could. On 25 November 1986, the applicants posted an
' application form for reservation of the business name "Word of
° Mouth Public Relations". They depose to the fact that they were
told by the Commissioner for Corporate Affairs that the name was
not available as "Word of Mouth Public Relations/Promotions" had
already been registered by the first respondent on the
application of the second respondent. On L December they say
that they could then only register the name "Advertising by Word
of Mouth". That business name was registered in January 1987.
' On 1 December 1986, the applicants sold the Gold Coast
business for $25,000.00. In their affidavit they say that they
agreed to allow the purchasers to use the name "Advertising by
Word of Mouth" or, "if we could obtain it 'Word of Mouth Public
Relations' in the area covered by the '075' telephone prefix."
The applicants say that they were told by Mr. StoeckeL
on 20 December 1986, that the name "Word of Mouth" had been
registered and "we have your promotional material which we got
from your office". They say that they left the Gold Coast with
the intention of setting up business in Brisbane and on the
fa Sunshine Coast.
On 27 January 1987, the applicants commenced business on
the Sunshine Coast at 77 The Esplanade, Mooloolaba, after moving
to the Sunshine Coast on 24 December 1986. The business
commenced as "Word of Mouth Public Relations" and operated under
10.
that name until approximately early March, when the name was
changed to "Advertising by Word of Mouth" because, as they say,
the only name they could. register was "Advertising by Word of
Mouth" and the applicants realised that they should only operate
under the registered name.
On 26 February 1987, the applicants commenced business
in Brisbane, operating out of an office at Strathpine. The
operation of the business in Brisbane is facilitated by access to
telephone listings arranged by computer by a firm called
Micromations into geographical groupings.
The respondents have been operating in Brisbane under
the name "Word of Mouth Public Relations" at 27 Stoneham Street,
Stones Corner, since the second week of December 1986. The
second respondent, Mr. Stoeckel, says that, shortly after the
applicants commenced the business "Word of Mouth Public
Relations" from the premises of Bretday on the Gold Coast, they
negotiated for its sale. He says that:-—
"I had applied to the Corporate Affairs Office in
Brisbane for registration of the name of "Word of
Mouth Public Relations" in the name of the company
Bretday Pty. Ltd. at about this time.
In registering the name "Word of Mouth Public
Relations" in Queensland Bretday Pty. itd.
believed that it had the right to use that name
for a business which it intended to set up in
Brisbane."
It is clear that, in the operation which the respondents
commenced in Brisbane in December 1986, not only did they "copy:
the business technique which had been developed by the
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11.
applicants, but more seriously and more importantly, they quite
slavishly copied the promotional material and other Literature in
which the applicants had. copyright.
As regards the relief claimed by the applicants based. on
breaches of copyright, the respondents, at the hearing, gave an
undertaking to the Court in terms of the relief claimed in
paragraph 3 of the Notice of Motion.
It seems clear beyond argument that the use of such
material by the respondents at the same time as the applicants
were carrying on a business in Brisbane using that material, was
conduct which would clearly constitute a contravention of s.52
and would indicate at least an association between those two
businesses.
As a consequence of the undertaking given by the
respondents, all that remains to be determined is whether the
applicants are entitled to prevent the respondents using the name
"Word of Mouth Public Relations" in association with their
telephone canvassing business in Brisbane.
There is no monopoly on ideas. However one might
disagree with the business morality of the respondents in
appropriating the business ideas and techniques developed by the
applicants, and however one might think that that conduct really
amounts to "reaping where they haven't sown", in my opinion there
was no lawful impediment to the respondents setting up an
identical business in Brisbane to that which the applicants were
aha
12.
operating on the Gold Coast. The: business is essentially local.
At the core of its operation is the method of telephone
canvassing for customers for local businesses. Inherent in the
operation is the requirement that the telephoning be confined to
a single STD district.
I am not satisfied that at the time the respondents set
up their business in Brisbane, there was reposing in the
applicants any goodwill or reputation in the words "Word of Mouth
Public Relations" in the Brisbane area. This conclusion is
determinative of the narrow issue left for adjudication.
Deane and Fitzgerald JJ. said in Taco Company of
Australia Inc. v. Taco Bell Pty.Ltd. (1982) 42 A.L.R. 177 at
p.202:-
"Irrespective of whether conduct produces or is
likely to produce confusion or misconception, it
cannot, for the purposes of s.52, be categorized
as misleading or deceptive unless it contains or
conveys, in all the circumstances of the case, a
misrepresentation. The difficulty which will
commonly arise in as.52 case is in determining
whether the conduct contains or conveys, in all
the circumstances, a misrepresentation ..."
They then advanced a number of propositions as affording
guidance, the first two of which are relevant in the
circumstances of this case. Their Honours said:-
"First, it is necessary to identify the relevant
section (or sections) of the public (which may be
the public at large) by reference to whom the.
question of whether conduct is, or is likely to
be, misleading or deceptive falls to he tested
(Weitmann v. Katies Ltd. (1977) 29 FLR 336, per.
Franki J. at 339-40, cited with approval. by Bowen
an
. Ghee
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SENMAL ET.
13.
CJ and. Franki J in Brock v. Terrace Times Pty.
Ltd. (1982) 40 ALR 97 at 99; [C1982] ATPR 40-267 at
43,412).
Second, once the relevant section of the public is
established, the matter is to be considered by
reference to all who come within it, 'including
the astute and the gullible, the intelligent and
the not so intelligent, the well educated as. well
as the poorly educated, men and women of various
ages pursuing a variety of vocations': Puxu
Pty.Ltd. v. Parkdale Custom Built Furniture Pty.
Ltd. (1980) 31 ALR 73, per Lockhart J. at 93: see
also World Series Cricket v. Parish, supra, per
Brennan J. (16 ALR at 203)."
At the time the business was set up in Brisbane by the
respondents, it is not open on the present evidence to conclude
that any relevant section of the public would be likely to be
misled or deceived by the conduct of the respondents in carrying
on their business.
The complaint of the applicants, in their counsel's
forceful submission, is that the respondents 'stole' the business
of the applicants. While in the colloquial sense that might be
true, there was in my view no business in Brisbane of the
applicants at any relevant time such as to preclude the
respondents lawfully from carrying ona telephone canvassing
business, identical with that which the applicants carried on at
the Gold Coast, in Brisbane, provided the applicants' copyright
was not infringed.
As to the failure by the applicants to register the
business name "Word of Mouth Public Relations" used in the
business conducted on the Gold Coast, I respectfully agree with,
the conclusion of Jenkinson J. in Aspar Autobarn Co-operative ~-
Fy
"mehr
14.
Society Ltd. vw. Dovala Pty.Ltd. £19863 ATPR 40-727, where his
Honour concluded that registration by the respondents of the
expression "Autobarn" did not afford in itself an answer tc the
claim that the use of that word had constituted breaches of
ss.52, 53(c) or 53(d) of the Trade Practices Act 1974. In that
case, his Honour concluded that the reputation and goodwill for
the protection of which the applicants had sought the Court's
exercise of its injunctive power,.did not owe their existence,
although substantial enhancement of their values was owed, to
deliberate contraventions of the Business Names Act 1962 (Vic.)
by the applicants. His Honour concluded at p.47,939 that, in ail
the circumstances of this particular case, the consequences of
those contraventions were not of a kind which could have
constituted a substantial impediment to the granting of
interlocutory injunctive relief.
In Epitoma Pty.Ltd. v. Australasian Meat Industry
Employees' Union and Others (No.2) (1984) 54 A.L.R. 730, the Full
Court of the Federal Court (Sheppard, Morling and Beaumont JJ.)
held, at p.734:-
"In an application for an interlocutory injunction,
the court must inquire first whether there is a
serious question to be tried (see Australian
Coarse Grain Pool Pty.Ltd. v. Barley Marketing
Board of Queensland (1982) 46 ALR 398; 57 ALJR
425; Tableland Peanuts Pty.Ltd. Vv. Peanut
Marketing Board (1984) 52 ALR 651; 58 ALJR 283,
per Brennan J. at 284)."
In cases of this kind, — the applications for
interlocutory relief are often substantially determinative of the '
wep ot -
final issue. In my opinion, wheré that' is the case, that is a
15-
factor which has to be considered in assessing the balance of
convenience.
In N.W.L. Ltd. v. Woods £19793 1W.L.R. 1294, Lord
Diplock at p. 1306 said:—
"My Lords, when properly understood, there is in my
view nothing in the decision of this House in
American Cyanamid Co. v. Ethicon Ltd. £19753 A.c.
396 to suggest that in considering whether or not
to grant an interlocutory injunction the judge
ought not to give full weight to all the practical
realities of the situation to which the injunction
will apply. American Cyanamid Co. v. Ethicon
Ltd., which enjoins the judge upon an application
for an interlocutory injunction to direct his
attention to the balance of convenience as soon as
he has satisfied himself that there is a serious
question to be tried, was not dealing with a case
in which the grant or refusal of an injunction at
that stage would, in effect, dispose of the action
' finally in favour of whichever party was
' successful in the application, because there would
be nothing left on which it was in the
unsuccessful party's interest ta proceed to
trial."
¢
He later said at p. 1307:-
"Where, however, the grant or refusal of the
interlocutory injunction will have the practical
effect of putting an end to the action because the
harm that will have been already caused to the
losing party by its grant or its refusal is
complete and of a kind for which money cannot
constitute any worthwhile recompense, the degree
of likelihood that the plaintiff would have
succeeded in establishing his right to an
injunction if the action had gone to trial, is a
factor to be brought into the balance by the judge
in weighing the risks that injustice may result
from his deciding the application one way rather
than the other."
In Pacific Hotels Pty.Ltd. Vv. Asian Pacific
International Utd. £19861 ATPR "40-730, I 'referred to this ,
question and a number of. cases," particularly those™"passing. off" ~
ete Se Tvs ow
.
'
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&
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cases where the practical commercial realities
refusal of an interlocutory application are considered as
16,
of the. grant or
being
relevant in determining the balance of convenience aspect of the
application: see also the observations of lord Denning M.R.
Fellowes & Son v. Fisher £19761 1 Q.B. 122 at pp. 133-5.
in
In this case, the applicants seek inter alia mandatory
injunctions.
In State of Queensland v. Australian Telecommunications
Commission (1985) 59 A.L.R. 243, Gibbs C.J. said at 245:-
"It is a very nice question where the balance of
convenience lies in the present case but in the
end two considerations have inclined me in favour
of the view that I ought not to grant = an
interlocutory injunction at the present stage.
The first of those considerations is that what is
sought is a mandatory injunction. In Redland
Bricks Ltd. v. Morris 019701 A.C. 652, the House
of Lords held that the grant of a mandatory
injunction is never made as of course and that a
factor to be taken into consideration is that the
defendant has not behaved unreasonably but only
wrongly. According to Halsbury's Laws of England
vol. 24, para 948, the position regarding the
grant of a mandatory injunction on an
interlocutory application is as follows: 'A
mandatory injunction can be granted on an
interlocutory application as well as at the
hearing, but, in the absence of special
circumstances, it will not normally be granted.
However, if the case is clear and one which the
court thinks ought to be- decided at once, or if
the act done is a simple and summary one which can
easily be remedied, or if the defendant attempts
to steal a march on the plaintiff, such as where,
on receipt of notice that an injunction is about
to be applied for, the defendant hurries on the
work in respect of which complaint is made so that
when he receives notice of an interim injunction
it is completed, a mandatory .injunction will. he
granted on an interlocutory application.'
Megarry J. stated the principle in Shepherd 'Homes
Ltd. v. Sandham ~ C19714 1 Ch. 340 at 351, in. the
2 aNd
17.
following words: *~...on motion, as contrasted with
the trial, the court is far more reluctant to
grant a mandatory injunction than it would be to
grant a comparable prohibitory injunction. In a
normal case the court must, inter alia, feel a
high degree of assurance that at the trial it will
appear tht the injunction was rightly granted; and
this is a higher standard than is required for a
prohibitory injunction.'
In my view this case lacks the high degree of assurance
that should exist for the grant of a mandatory injunction.
The present position is that each party has registered a
business name which includes the phrase "Word of Mouth" and each
party is able to carry on the business of telephone canvassing
for local businesses under a name which includes that phrase. In
my opinion, the applicants have not established that they had a
reputation or goodwill in the Brisbane area in that name at any
relevant time so as to he entitled to prevent the respondents
from carrying on business under a name incorporating that phrase.
,
For the reasons I have given, I refuse the application
for injunctive relief. Notwithstanding that I refuse the relief
sought by the applicants, having regard to all the circumstances
of the case and, in particular, the conduct of the respondents
prior to the making of the present application and the
undertaking in respect of the claims in copyright, I think the
appropriate order to make by way of costs is that the first,
second and fifth respondents pay the costs of the application.
! certify that this and the iS preceding
. "pages, are etre copy of the reasons for | -
, : "=fudgment herein of His Honour
- - . ae "Mr. Justice Spender eDeat
: ne : [23a hae ~ Associate
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