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4,
JUDGMENT No. Slafo1.
CATCHWORDS
Trade Practices - use of names - registration of business name -
acquisition of shelf company and change of corporate name —-
proposed motel development - conduct beyond mere registration -
chosen names similar to names used to describe a nearby resort
complex (including a casino and an hotel) such names having
acquired a considerable reputation - misleading and deceptive
conduct in trade and commerce - injunctions.
Trade Practices Act 1974
Hornsby Building Information Centre Pty Ltdv. Sydney Building
Information Centre Ltd (1977-78) 140 C.L.R. 216
Tillmanns Butcheries v. A.M.I.E.U. (1979) 27 A.L.R. 367
Taco Co. of Australia Inc. & Anor v. Taco Bell Pty Ltd & Ors
(1982) 42 A.L.R. 177
No. W.A. G54 of 1985
BURSWOOD MANAGEMENT LIMITED and WEST AUSTRALIAN TRUSTEES LIMITED
v. BURSWOOD CASINO VIEW MOTEL/HOTEL PTY LTD, FRANCESCO
BEMPASCUITO and AUSTRALIAN TELECOMMUNICATIONS COMMISSION
FORSTER, J.
PERTH
9 OCTOBER 1987 RECTTD
26.0CT 1987
FEDERAL COURT OF
AUSTRALIA
PRINCIPA:
REGlerRY
IN THE FEDERAL COURT OF AUSTRALIA
WESTERN AUSTRALIA
DISTRICT REGISTRY No. WA G54 of 1985
wee evr rvw
GENERAL DIVISION
BETWEEN:
BURSWOOD MANAGEMENT LIMITED
and WEST AUSTRALIAN TRUSTEES
LIMITED
Applicants
- and -
BURSWOOD CASINO VIEW
MOTEL/HOTEL PTY LTD
First Respondent
- and -
FRANCESCO BEMPASCUITO
Second Respondent
- and -
AUSTRALIAN TELECOMMUNICATIONS
COMMISSION
Third Respondent
REASONS FOR JUDGMENT
CORAM: Forster J.:
At Burswood Island in Perth there is a complex which
consists of a casino which opened on 30 December 1985, an hotel
which is expected to be opened very shortly, a sports centre
which was expected to be in operation at the end of August 1987
and a convention/cabaret centre which is expected to be completed
in October 1987. There will also be a golf course.
2.
Burswood Property Trust ("the Trust") was established in
February 1985 for the purpose of holding the casino licence and
developing the Burswood Island Resort Complex. The Trust holds
an estate in fee simple in the land at Burswood, the site of the
complex, and owns all the assets of the complex. The second
applicant West Australian Trustees Limited ("the Trustee") 15 the
trustee of the Trust and the first applicant, Burswood Management
Limited ("BML") 1s the manager of the Trust, responsible for its
day to day operations. Another company, Genting (Western
Australia) Pty Ltd ("Genting") 1s responsible for part of the
Management of the complex pursuant to the operation management
agreement dated 20 February 1985. Genting supervises and
directs the management and operation of the complex in accordance
with overall plans laid down by BML and the Trustee. It
provides some senior staff of the complex and all other staff are
employed by BML. The intention is that the aspects of the
complex other than the casino will, as they become operational,
be managed in the same way.
So far as the hotel is concerned there is in existence a
conditional contract pursuant to which, subject to the fulfilment
of certain conditions, the Trust will sell the hotel to certain
Japanese companies. If the conditions are fulfilled the sale
will be completed when the hotel is opened for business which
event is expected very soon, possibly even before this judgment
is delivered. The Japanese intend to operate the hotel under
the name "Burswood Island Hotel". BML has been advertising and
promoting the hotel under the name "Burswood Hotel" and if the
sale to the Japanese falls through intends that the hotel will
ailaallceeeneehaemnancenemniemmnmnemneememendl caalitntcndeaiadontentimeneanimmenamenem 20, enitenieiided nao mnaneinetientmmetemenateeedean eminent eee
3.
continue to operate under that name in the future,
The second respondent ("Bempascuito") and one Shortland
who was not called as a witness, became aware that one
Pavlinovich owned a block oi land on the Great Eastern Highway at
Rivervale, zoned for use asa site for a motel. This land is
approximately one and a half kilometres from the Burswood Island
Complex. As a result of becoming aware of the existence of this
land a contract was eventually entered into between Pavlinovich
and a company Mid-Point Pty Ltd ("Midpoint") on behalf of which
Bempascuito and Shortland signed a form of offer and acceptance
on 5 February 1985 to purchase the land at Rivervale for 1.25
million dollars. At the time Bempascuito and Shortland appear
not to have been directors of Mid-Point but nothing turns on this
except perhaps Bempascuito's credit as he asserted that he was a
director, even in the face of a form notifying a change of
directors lodged with the Securities and Exchange Commission
signed by Bempascuito which recorded that he became a director on
1 April 1985. The deposit of $380,000 called for by the
contract was never paid. Bempascuito said in evidence that
shares in a company Lake Pinjar Pty Ltd and two units in a block
known as "Blue Bay" at Mandurah were transferred to Pavlinovich
and that the net value of the company and the two units neatly
made a total of $380,000. Bempascuito said that he signed
transfers of the company shares and that transfers of the units
were also executed. One of these units belonged to A.F.B.
Nominees Pty Ltd, Bempascuito's family trust company and tne
other apparently belonged to one D'Alessio. I doubt that the
transfers of the shares or of the units were ever executed but if
4.
they were Pavlinovich whom I believed, said that he had made it
quite clear to Bempascuito that he would not accept the transfers
of the shares or of the units, except perhaps as a part of the
total price if the sale went through. I found Bempascuito's
account of this transaction impossible to believe. However this
may be it was Bempascuito's intention and presumably Shortland's
also, that a large building be built on the land by the company
Burswood Casino Motel/Hotel Pty Ltd.
Knowing as did many if not most people in Perth that
there were going to be developed a casino anda hotel on the
Burswood Island site, Bempascuito procured on 4 February 1985 the
registration of the business name "Burswood Casino Motel/Hotel".
On 29 March 1985 Bempascuito and Shortland became directors of a
shelf company Esjay Pty Ltd and on the same day the name of that
company was changed to Burswood Casino Motel/Hotel Pty Ltd. The
name was changed again on 23 February 1987 to Burswood Casino
View Motel/Hotel Pty Ltd which is the first respondent's present
name.
In February 1985 Bempascuito sought from G.A. Cooper and
Associates Pty Ltd, a valuer, a feasibility study and valuation
of a motel development on the Rivervale site. Knyvett, an
architectural draftsman, prepared some plans and on 23 April 1985
Mr G.A. Cooper who gave evidence, produced a feasibility study
with respect to a 266 room motel to be erected onthe site.
Application for approval of the project was made to the Belmont
City Council and also to the Metropolitan Region Planning
Authority. A promotional brochure with respect to the proposed
5.
motel development was prepared by Bempascuito and Shortland in
May 1985. On 31 May and 2 June 1985 the first respondent caused
to be placed in newspapers circulating in Western Australia
advertisements which stated that there were a limited number of
strata title motel units available "in this 266 room motel/hotel
complex" for $69,000 "yours now on 20% dep. balance on completion
October 1986". The then name of the first respondent 1s in more
prominent type than most of the rest of the advertisement. A
telephone number is also inserted. In the week following the
publication of these advertisements Bempascuito§ says that
approximately 50 telephone calls were received enquiring about
the units advertised. I return to this matter later.
The first respondent also made application for the
insertion of an entry under its then name in the white pages of
the 1986 Perth telephone directory. The applicants became aware
of this application to Telecom.
These proceedings were commenced on 4 June 1985 claiming
an injunction against the first and second respondents
restraining them from using in trade or commerce or in carrying
on their business the names "Burswood Casino Motel/Hotel Pty
Ltd", "Burswood Casino Motel/Hotel", "Burswood Casino", "Burswood
Hotel", "Burswood Motel" or any other combination of such names
or any name or names deceptively similar. The application also
Claimed damages against the first and second respondents pursuant
to s.82 of the Trade Practices Act 1974 and damages for passing
off. The statement of claim makes it clear that the claim for
damages under the Trade Practices Act is on the footing that the
6.
first respondent has committed breaches of 35.52, 53 and 53A of
the Trade Practices Act. Interlocutory relief vas sought
against the first and second respondents restraining the use of
names and various other things and against the third respondent
from publishing 1n the 1986 edition of the white pages or the
yellow pages of the Perth telephone directory or in any future
edition, various names.
On 13th Toohey J of this Court as he then was, made an
order in the following terms
"1. Upon the Applicants giving to the Court
separate undertakings in the terms filed
herein:
(1) The First and Second Respondents by
themselves, their servants and agents be
restrained until the trial of the
application from:-
(a) using the names 'Burswood Casino
Motel/Hotel Pty. Ltd.', 'Burswood
Casino Motel/Hotel', 'Burswood Casino
Motel', 'Burswood Casino Hotel' or
'Burswood Casino';
(b) holding themselves out i1n any way
whatsoever as having a sponsorship or
affiliation with or the approval of
the Applicants in carrying on their
business or being in any way connected
with the Burswood Casino;
(c) using the names 'Burswood Casino
Motel/Hotel Pty. Ltd.', 'Burswood
Casino Motel/Hotel', 'Burswood Casino
Motel', 'Burswood Casino Hotel' or
'Burswood Casino' in offering any
goods or services for sale;
(d) offering for sale any interest in land
under the names 'Burswood Casino
Motel/Hotel Pty. Ltd.', 'Burswood
Casino Motel/Hotel', 'Burswood Casino
Motel', 'Burswood Casino Hotel' or
'Burswood Casino';
7.
(e) from entering in the 1986 Telephone
Directory the names 'Burswood Casino
Motel/Hotel Pty. Ltd.', 'Burswood
Casino Motel/Hotel', 'Burswood Casino
Motel', 'Burswood Casino Hotel' or
'Burswood Casino'.
(2) The Third Respondent by itself, its
servants or agents be restrained until the
trial of the application from publishing
in its 1986 Telephone Directory, at the
instance of the First and Second
Respondents, the names 'Burswood Casino
Motel/Hotel Pty. Ltd.', 'Burswood Casino
Motel/Hotel', 'Burswood Casino Motel',
'Burswood Casino Hotel' or 'Burswood
Casino''."
After this order was made the respondents did little
further about the project to build a motel at Rivervale. It was
said that publicity concerning the interlocutory proceedings
before Toohey J. made it difficult to interest financial backers
for the scheme. The contract for the purchase of the land from
Pavlinovich by Mid-Point was eventually rescinded. Neither
Mid-Point, the first respondent, the second respondent nor
Shortland appear to have taken any further steps. At the time
of the hearing before me, Bempascuito had no assets and was
working as a car salesman after a period receiving social
security benefits. He 1s said also to be subject to a Part X
agreement under the Bankruptcy Act 1966 although this 1s
uncertain. Shortland entered into a composition with his
creditors under Part X also.
According to Bempascuito the first respondent now has no
assets at all. Bempascuito said in cross-examination that the
first respondent may have a prospect of constructing and running
a motel on the Rivervale land. He said "there may be backers"
"ee
8.
but was no more specific than that. It was suggested to him,
but indignantly denied, that he caused the first respondent to
Maintain its defence of these proceedings and continued his own
defence in the hope of selling the name of the first respondent
or extracting some money from the applicants in consideration of
the first respondent giving up its use of the name.
At the beginning of the hearing the applicants abandoned
their claim with respect to the alleged passing off and their
claim for damages and the hearing continued on the footing that
injunctions preventing the use of certain names were sought and
also a mandatory injunction directing the respondent to change
its name. I should mention that early in the hearing counsel
for the respondents made an open offer in court to settle the
proceedings upon the basis that the first respondent's name be
changed to "Burswood Island View Motel/Hotel Pty Ltd", that the
first and second respondents be enjoined from using the name
"Burswood Casino Motel/Hotel" and that all parties bear their own
costs. This offer was not accepted by counsel for the
applicants and the hearing proceeded.
The case is largely about the use of names whether the
question of a breach of ss.52 or 53 or 53A of the Trade Practices
Act is being considered. It is necessary therefore to deal with
some particularity with the use of names by each party. First
it should be observed that Burswood Island is a name given to the
area of land bounded on three sides by the Swan river. No party
invented the name. It should also be observed that the casino
complex is situated on Burswood Island and the respondents'
9.
proposed development was to be situated in the suburb of
Rivervale and was some one anda half kilometres distant in a
straight line from the casino.
It was known that the Burswood Island area had been
chosen by the Western Australian Government as the site for the
casino complex as long ago as early April 1984. Thereafter the
casino was frequently referred to as the "Burswood Island
Casino". The intention of the interests now represented by the
applicants to build a casino and, in all probability two hotels,
an exhibition centre, a convention centre and a golf course was
publicised in newspapers in November and December 1984.
In January 1985 Bempascuito applied for registration of
the business name "Burswood Casino Motel/Hotel" as a matter of
urgency. The name was registered on 4 February 1985. In an
affidavit of 11 June 1985, sworn for the purposes of the
proceedings before Toohey J., Bempascuito swore as follows -
"10. I deny that the first respondent adopted the
corporate name calculating thereby to acquire
the benefit of the applicants' established
reputation in connection with the casino
development and with a view to increasing its
trading and commercial activities in the
motel/hotel industry".
In Bempascuito's evidence before me the following passage occurs:
"And you expected, I suggest, that by using a name
that contained the words: Burswood, Casino and
Hotel, you would increase the trading and
commercial activities of the motel hotel?~--Yes.
You adopted the name: Burswood Casino Motel/Hotel
with a view to increasing the trading and
commercial activities of the company in the motel
hotel industry, did you not?---Yes."
10.
When faced with paragraph 10 of his affidavit reproduced above
Bempascuito was unable to answer whether his evidence was
completely false or mistaken. I found Bempascuito a most
unsatisfactory witness, some of whose evidence was so improbable
as to be plainly untrue. He impressed me aS a man Who i185
prepared to say anything 1f he perceived that it might help his
cause with a total disregard for truth. In this instance I
think that he inadvertently told the truth upon an important
issue and it 1s my belief that the words "Burswood" which 1s
geographically inaccurate, '"Casino"" which could have nothing
properly to do with a motel operation at Rivervale and "Hotel"
which 18 inappropriate in connection with a proposed building
with 266 motel units were all deliberately chosen in order to
help the project at Rivervale by attracting interest in it from
investors and later from clients seeking accommodation by
creating an apparent association with the Burswood casino and
hotel. Bempascuito almost admitted as much in cross-examination
when he conceded that the association with the casino project
would help his project. The use of the names "Burswood",
"Casino", and "Hotel" appears to have been fundamental to the
project of the respondents since after they were enjoined against
using them the whole motel project came to a halt.
On 18 February 1985 BML on behalf of the Trust applied
for registration of nine business names in connection with the
resort and its various components. Five of the nine
applications were successful but the applications with respect to
"Burswood Casino" and "Burswood Hotel" were rejected because of
similarity to the business name then owned by Bempascuito.
11.
Eventually an appeal to the Attorney-General for Western
Australia was successful towards the end of April 1985 and the
names "Burswood Casino" and "Burswood Hotel" were registered in
the name of BML.
In February 1985 as I have said Bempascuito sought from
G.A. Cooper and Associates Pty Ltd a feasibility study for a
motel development for Burswood Casino Motel/Hotel Pty Ltd.
On 26 April 1985 a prospectus was issued offering
100,000,000 units in the Burswood Property Trust for public
subscription. Approximately 240,000 copies of this prospectus
were distributed one way or another in Western Australia and
throughout Australia. In this prospectus the operation as a
whole is referred to as the "Burswood Island Resort" or the
"Burswood Island Resort Complex" or the "Burswood Resort". When
the individual elements of the complex are being mentioned the
phrases "Burswood Hotel" and "Burswood Casino" are almost
invariably used.
During the building of the casino during 1985 it
received much publicity in the press andon the radio and
television. As before, when the whole complex was referred to,
it was called the "Burswood Island Resort Complex" or the
"Burswood Island Resort" and when the casino component alone was
mentioned it was most often referred to as the "Burswood Casino".
After the casino was completed in December 1985 and the hotel
building began the same sort of thing generally occurred. The
complex as a whole was referred to in publicity as the "Burswood
12.
Island Resort", "Burswood Resort" or the "Burswood Island Resort
Complex". When it was necessary to refer to the hote!? component
it was most often referred to as the "Burswood Hotel".
The voluminous documentary evidence and the oral
evidence satisfies me that in the advertisements and other
publicity and in common speech and in articles in the press' the
casino was most often described as the "Burswood Casino" or just
the "Casino" and the hotel was most often referred toas the
"Burswood Hotel". The complex as a whole was referred to by a
slightly different name or names. Many objects have the words
"Burswood Casino" on them. There are signs in the casino on
gaming tables and on gambling chips. The words also appear on
the front of the building housing the casino. In addition there
will be in the hotel upon opening a_ supply of items such as
soaps, bottle openers, shampoo, shoe care kits and shower caps
and the like. All of these items are stamped with the name
"Burswood Hotel", and whether the hotel 1s sold or not, there
will be from six months to nine months supply of these items
available and it is anticipated that they will be used until at
the earliest they are all gone.
I find myself quite unable to accept the evidence of
Harber who described himself as "an avid casino watcher" who said
that he and his father and his father-in-law monitored and taped
as many radio and television news broadcasts as possible and also
talk-back shows for the purpose of finding out what was going on
with respect to the casino. He said that the casino was
invariably referred to as the Burswood Island casino on radio and
13.
television and went on to say that he had never read of it being
referred to in any other way. When faced by the croys-examiner
with a number of examples or references to the "Burswood Casino"
in the press I found his performance in the witness box
destructive of his personal credit and I can place no reliance on
hin.
Bempascuito himself conceded in cross-examination that
the casino is widely known as the "Burswood Casino" but he denied
that the hotel was widely known as the "Burswood Hotel". The
evidence satisfies me that from the time that building began upon
the site wide publicity in all available ways was given to the
casino and the hotel. The applicants acquired a considerable
reputation in the names "Burswood Casino" and "Burswood Hotel".
The only two further uses of relevant names by the
respondents were in the advertisements in the press on 3l May
1985 and 1 June 1985 to which I have referred earlier and the
application for insertion in the white pages of the telephone
directory. One Johnston, a solicitor, telephoned the number
mentioned in both advertisements and the female who answered the
telephone said "Burswood Casino Motel" and shortly afterwards
passed him on to Bempascuito who had a discussion with him. It
is probably safe to assume that most of the fifty or so callers
who responded to the advertisements was spoken to in similar
words. Miss Banks, at the time a receptionist/secretary
employed by BML who manned the switchboard at the casino, gave
evidence which I believed that shortly after the advertisements
appeared she received about 20 telephone calls from people who
14.
were making enquiries about the motel units advertised. These
people had quite evidently read the advertisements or cone of them
and believed that the proposed development and the Burswood
casino complex had some connection. This belief was based no
doubt on the name used in the advertisement. Such people
ignored the telephone number given in the advertisement and
telephoned the casino.
The use of the name in the application for a listing in
the directory is probably not very important in itself because
the attempted listing was nipped in the bud by his Honour's order
of 13 June 1985. There is of course a further action of the
respondents with respect to the name of the first respondent and
that 1s the change of name by inserting the word "View" in
February 1987. I mention in passing that on 16 April 1985 the
Corporate Affairs Commission told the solicitors for the
applicant that the first respondent had been directed to change
its name from Burswood Casino Motel/Hotel Pty Ltd. The first
respondent took a long time to respond to this direction and this
new name is in any event misleading with respect to the added
word "view". The evidence is that the casino cannot be viewed
from ground level at the proposed motel site. Opinions varied
as to whether it could be seen from the second floor or the
eighth floor.
What then is the legal position?
In the first place it is not only the person deceived or
misled nor only the person who has suffered loss as a result of
15.
the respondents' misleading or deceptive conduct who may make
application with respect to a breach of ss.52, 53 or 53A of the
Trade Practices Act and obtain injunctive relief to restrain
conduct that 1s a breach of any part of Part V of the Trade
Practices Act. "This remedy may be applied for by anyone,
including a person who does not fear being deceived or misled"
(Hornsby Building Information Centre Pty Ltd v. Sydney Building
Information Centre Ltd (1977-78) 140 C.L.R. 216 at 234 per Murphy
Je). This confirms the status of the applicants to sue.
Section 80(4) of the Trade Practices Act is as follows
"(4) The power of the Court to grant an injunction
restraining a person from engaging in conduct may
be exercised -
(a) whether or not it appears to the Court that
the person intends to engage again, or to
continue to engage, in conduct of that kind;
(b) whether or not the person has previously
engaged in conduct of that kind; and
(c) whether or not there is an imminent danger of
substantial damage to any person if the
first-mentioned person engages in conduct of
that kind."
In the present case although the misleading and
deceptive conduct of the first and second respondents was not
very extensive and notwithstanding that the first respondent
appears to be dormant and the second respondent impecunious, the
second respondent has said that the first respondent may yet go
ahead with the motel project so there is clearly power to enjoin
the first and second respondents against engaging in misleading
and deceptive conduct.
16.
Were the first and second respondents guilty of engaging
in misleading or deceptive conduct?
I consider it unlikely that the mere registration of the
name Burswood Casino Motel/Hotel Pty Ltd constituted misleading
or deceptive conduct in trade or commerce. However the first
respondent did more than this. It used this name in a number of
ways with the intention of creating an impression that it had a
connection of some sort with the Burswood Island Complex. First
it caused to be inserted the advertisements 1n the newspapers and
caused its receptionist to answer the telephone as she did when
Johnston rang. Second it sought a feasibility study from G.A.
Cooper & Associates Pty Ltd. It also caused a promotional
brochure to be prepared by Bempascuito and Shortland although
this was never finally published beyond the proof stage. It
also applied to have its then name inserted in the 1986 telephone
directory. This conduct small in scale although it was, was
intended to mislead and that it would do so was a "real not
remote chance or possibility" (Tillmanns Butcheries v. A.M.I.E.U.
(1979) 27 A.L.R. 367 at 380 per Deane J.)
Taco Co. of Australia Inc. & Anor. v. Taco Bell Pty Ltd
& Ors. (1982) 42 A.L.R. 177 contains at pages 202-203 per Deane
and Fitzgerald JJ. a very useful statement of some of the
relevant principles :
"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 be tested
(Weitmann v. Katies Ltd (1977) 29 F.L.R. 336, per
17.
Franki J. at 339-40, cited with approval by Bowen
C.J. and Franki J. in Brock v. Terrace Times Pty
Ltd (1982) 40 A.L.R. 97 at 99; £19821 A.T.P.R.
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 A.L.R. 73, per Lockhart J. at 93: see
also World Series Cricket v. Parish, Supra, per
Brennan J. (16 A.L.R. at 203).
Thirdly, evidence that some person has in fact
formed an erroneous conclusion is admissible and
May be persuasive but is not essential. Such
evidence does not itself conclusively establish
that conduct is misleading or deceptive or likely
to mislead or deceive. The court must determine
that question for itself. The test 1s objective
(see, generally, Annand & Thompson Pty Ltd v.
Trade Practices Commission (1979) 25 A.L.R. 91,
per Franki J. at 102; Sterling v. Trade Practices
Commission (1981) 35 A.L.R. 59, per Franki Jd.
(with whom Northrop J. agreed) at 66 and per Keely
J. at 69; Smnoid v. Handley (1981) 38 A.L.R. 383,
per the court (Bowen C.J., Northrop and Morling
JJ); and Brock v. Terrace Times, supra, per Bowen
C.d. and Franki J.)."
In the case at hand the relevant sections of the public
are the investing public at the outset, those who are looking for
a suitable enterprise into which to invest surplus funds. Had
the motel project been completed and operated under its then name
or indeed its name as altered in 1987 the relevant section of the
public would have been those who travel by motor car to Perth and
want accommodation in close proximity to the city. There was
evidence from Miss Banks that some people at least were misled
and deceived by the use by the first respondent of a name
deceptively similar to the Burswood Hotel in the Burswood Island
Resort.
18.
It seems to me that the conduct of the first respondent
was misleading and deceptive and thus a breach of s,.52 1n two
different ways. In the first place its use in trade or commerce
of a name containing the words "Burswood", "Casino", and "Hotel"
did in fact mislead and deceive some persons into thinking that
the first respondent was linked in some way with the Burswood
Island Complex and viewed objectively the conduct was likely 'to
be misleading or deceptive. In the second place in connection
with the possible sale or grant of an interest in land the first
respondent represented by implication that it had an affiliation
it did not have which may also be a breach of s.53A of the Trade
Practices Act.
In my opinion since the first respondent has been guilty
of at least a breach of s.52 of the Trade Practices Act and
possibly also a breach of s.53A, the applicants are entitled to
an injunction in somewhat similar terms to that granted by Toohey
J. I am also asked to grant a mandatory injunction compelling
the first respondent to change its name. As I have said I do
not think that the mere adoption of a name without more is
conduct in trade or commerce and Ido not think that I should
make the mandatory order sought.
As to the question of costs I consider that the
applicants are entitled to an order for their costs of action to
be paid by the first and second respondents. The offer to
settle the action made on the second day of the trial was not
unreasonably refused by the applicants and so far as I know the
first respondent has not yet had its name changed. Even if it
19.
had, the proposed change of name was, in my view, inadequate.
So far as concerns the second respondent I am satisfied that he
was a "person concerned" in the breaches of Part V of the Trade
Practices Act by the first respondent.
So far as concerns the sale of the hotel part of the
complex to the Japanese companies, it 1s proposed that the
purchasers will operate the hotel under the name Burswood Island
Hotel. Even if this happens it seems to me that the first
respondent should still be enjoined from using the words
"Burswood" and "Hotel". The addition of the word "Island" to
the name under which the hotel business will be carried on seems
to me not to affect the position.
There will be an order with injunction against the
respondents and an order that they pay the applicants' costs of
action to be taxed.
I will hear counsel as to the precise terms of the
injunction.
I am not asked, and do not make, an order either in
favour of or against the third respondent.
I certify that this and
the \% preceding pages are
a true copy of the Reasons
for Judgment of Mr Justice
Forster.
associate WA. hae! Kurd
Dated: 9 Ocheter Te R.
20.
Counsel for the applicants
Solicitors for the applicants
Counsel for the respondents
Solicitors for the respondents
Dates of hearing
oo
Mr S. Archer with Mr P.
Blackburn
Robinson Cox
Mr B.F. Stokes
B.F. Stokes & Associates
10,
1l,
13,
18,
21 August,