Street, C.Y. & Anor (Trading as Caboolture Motel) v Jedminster Pty Ltd & Anor Caboolture Motel [1988] FCA 307
Federal Court of Australia
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JUDGMENT No. 20712. Shs
CrATCHWORDS
TRADE PRACTICES - Consumer protection - Misleading or deceptive
conduct - Passing off - Right to interlocutory injunction - Use
of similar descriptive trade names - Two motels in small town -
Applicants' older establishment called "Caboolture Motel" -
Applicants seeking to restrain respondents from calling new
establishment "Caboolture Hotel Motor Inn".
Trade Practices Act 1974 5.52
CAROL YVONNE STREET & ANOR. trading as the "CABOOLTUPE MOTEL" V.
JEDSMINSTER PTY.LTD. & ANOR.
QLD. NO. G208 OF 1988
SPENDER J.
BRISBANE
22 JUNE 1988.
IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY
GENERAL DIVISION
Meet et et ee
BETWEEN :
QLD. G208 of 1988
CAROL YVONNE STREET and ANTHONY WINSTON STREET
trading as the "CABOOLTURE MOTEL"
Applicant
JEDSMINSTER PTY. LTD.
First Respondent
AND:
TURBOT ROMA GEORGE PTY. LTD.
Second Respondent
MINUTE OF ORDEP
JUDGE MAKING ORDER: SPENDER J.
DATE OF ORDER: 22 JUNE 1988
WHERE MADE: BRISBANE
THE COURT ORDERS THAT:
l. Upon the applicants, through their
counsel, giving the usual undertakings as
to damages, the first
respondents by themselves
and second
or
by their
servants or agents or any of them be
restrained until the trial of the action
or earlier order from using by way of
advertising or otherwise
"Caboolture Hotel Motel",
the name
"Caboolture
Hotel Motor Inn", or Caboolture Hotel
Motel Inn" or any other words
combining
the word "Caboolture" with the words
"Motel" or "Motor Inn", by reference to
the business carried on at Morayfield
Road, Morayfield, by
respondent.
the first
tb
«
After fourteen days of today's date, the
first and second respondents by
themselves or by their servants or agents
or any of them be restrained until the
trial of the action or earlier order from
using any signs, advertisements,
stationery, staff uniforms and any other
item wherein or whereon the words
"Caboolture Hotel Motor Inn" or
"Caboolture Hotel Motel" or "Caboolture
Hotel Motel Inn" or any other name
containing the words "Caboolture" and
"Motel" or "Motor Inn" in respect of the
said business.
3. Each party have liberty to apply on
reasonable notice.
4. The matter to be brought on again for
directions on seven days' notice to the
other parties.
5. Costs of and incidental to the
application are reserved.
Note: Settlement and entrv of orders is dealt with by Order 36
of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
)
)
QUEENSLAND DISTRICT REGISTRY ) QLD. G208 of 1988
)
GENERAL DIVISION )
BETWEEN:
CAROL YVONNE STREET and ANTHONY WINSTON STREET
trading as the "CABOOLTURE MOTEL"
Applicant
AND:
JEDSMINSTER PTY. LTD.
First Respondent
AND:
TURBOT ROMA GEORGE PTY. LTD.
Second Respondent
SPENDER J.
BRISBANE
22 JUNE 1988.
REASONS FOR JUDGMENT
The applicants, who trade as the "Caboolture Motel" in
Caboolture, seek interlocutory relief. They claim against the
first respondent:-
"1. An interim injunction restraining the
Respondent its servants or agents or any of
them from continuing to use either by way of
advertising Or otherwise, the names
"Caboolture Hotel Motel" or "Caboolture
Hotel-Motor Inn" or "Caboolture Hotel-Motel
Inn" or any like name in reference to the
business carried on by the Respondent at
Morayfield Road, Morayfield in the State of
Queensland;
2. An interim injunction compelling' the
Respondent to forthwith remove from the
premises situated at Morayfield Road,
Morayfield and ceased (sic) the use of all
signs, advertisements, stationery, staff
uniforms and any other item whatsoever
wherein or whereon the words "Caboolture
Hotel-Motor Inn" or "Caboolture Hotel Motel"
or "Caboolture Hotel Motel Inn" or like
words are used in respect of the said
business."
The business now known as the "Caboolture Motel" has
been carried on for approximately ten years, originally as the
"Motel Caboolture". The name "Caboolture Motel" has been
registered as a business name under the Business Names Act 1962
(Qld.) since 9 October 1985, and Mr. & Mrs. Street became the
registered proprietors of that business on 1 August 1986 and have
continued to conduct business under that registered business name
to the present.
Jedsminster Pty. Ltd. is the licensee of an hotel
conducted at Morayfield Road, Morayfield. The second respondent,
Turbot Roma George Pty. Ltd., is the registered proprietor of the
land on which the hotel-motel business is conducted. The
business opened on 21 December 1987. The nominee of the licensee
is Mr. Walter Bennie. He is employed by the first respondent and
manages the complex. There are sixteen motel style accommodation
units. The licence is registered in the name "Morayfield
Hotel-Motel". There had previously been an hotel on the
Morayfield Road property which had conducted business for many
years under the name of "Morayfield Hotel". This building was
demolished and a modern complex, consisting of an hotel with a
large drive-in bottle department as well as sixteen motel units,
was constructed and commenced business in late 1987.
On 19 January 1988, solicitors for the applicants wrote
to the manager of the first respondent. That letter stated in
part:-
"Our client has noted that the business name
"Caboolture Hotel Motel" appears on signs about
the property at Morayfield, on clothing worn by
certain staff members, in advertisements in local
newspapers and is listed with telecom (sic) and is
generally used to promote the business carried on
at Morayfield.
On a number of occasions our client has made
bookings for guests, particularly interstate
guests, only to find that the guests through
obvious confusion, ended up staying at your
premises. Our client is also continually
receiving phone calls and correspondence intended
for your business, again because of the confusion
between the associated names."
The letter indicated that fourteen days would be allowed for the
removal of all signs, advertising material and listings with
Telecom in respect of the name "Caboolture Hotel Motel".
After some communication between the respective
solicitors, the solicitors for the first respondent wrote on 9
March 1988 indicating that their client was "...agreeable to
altering the name under which it trades to Caboolture Hotel".
This letter was acknowledged on 11 March, and the solicitors for
the applicants indicated:-
",..our client is prepared to allow a further 21
days to enable your clients to replace all the
signs and other matters that may have any
reference to the name "Caboolture Hotel Motel".
However, we reserve our clients' rights to proceed
if no action is taken during this time."
On 29 April, the solicitors for the applicants again wrote
complaining of the continued advertising as the "Caboolture Hotel
Motel". There was further correspondence, and on 27 May 1988,
the solicitors for the respondents wrote and said:-
"We confirm that in accordance with previous
correspondence the previous sign has been removed
and replaced with a sign 'Caboolture Hotel Motor
Inn'."
The letter continued:-
"Further, all other references to the previous name
have now been deleted and all appropriate parties
have been notified accordingly so that the future
trading name of the business will be 'Caboolture
Hotel Motor Inn'.
We submit that, without any admission that the
name ''Caboolture Hotel/Motel' could have been
confused with your clients' business, in an
abundance of caution ovr client has agreed to
change the name to Caboolture Hotel Motor Inn."
While the previous correspondence included reference to
the removal of a sign, there is nowhere any earlier reference to
an intention to carry on business under the name "Caboolture
Hotel Motor Inn"; in fact, the letter of 9 March 1987 is directly
to the contrary. Ina letter dated 31 May 1988, the solicitors
for Jedsminster Pty.Ltd. indicated:-
",..our client proposes to trade under the name
'Caboolture Hotel Motor Inn' and is prepared to
give an undertaking to the Court that it will not
use the name 'Caboolture Hotel Motel'. It is our
contention that the other forms of restraints are
too wide and our client is not prepared to give
undertakings in those terms."
The respondent had sought registration of the name
"Caboolture Hotel/Motel", but this had been rejected by the
Commissioner for Corporate Affairs. The rejection of the
registration was accompanied by a statement that "[t]he name
applied for could be confused with or mistaken for the presently
registered Caboolture Hotel and Caboolture Motel". The evidence
is largely silent as to who were or are the registered
proprietors of the name "Caboolture Hotel", but one may infer
from the yellow pages of the telephone directory which lists the
name "Caboolture Hotel" at the address Morayfield Road,
Morayfield, that they are entities associated with' the
respondents or their predecessors. It is to be noted that,
according to the white pages of the Caboolture telephone
directory, a number of businesses with the word "Caboolture" in
their name give an address as Morayfield Road, Morayfield,
including "Caboolture Air Conditioning", and "Caboolture Autoland
Mitsubishi".
Caboolture is a small town situated some 45 kilometres
north of Brisbane. In the general region of Caboolture there are
a number of satellite communities such as Toorbul, Bribie Island,
Morayfield and Beachmere. Caboolture has a primary school and a
high school, train station and postcode. Morayfield likewise has
a state school, high school, train station and postcode.
The hotel-motel is located at Morayfield Road,
Morayfield, about 200 metres south of the Caboolture/Morayfield
boundary, on the southern entrance and exit road to Caboolture.
The Caboolture Motel is approximately 1.5 kms. away, on Lower
King Street, which is in the centre of Caboolture. It is
situated on the main arterial road from the Bruce Highway into
Caboolture.
Since the hotel-motel commenced business, it has used,
in one way or another, the names "Caboolture Hotel Motel",
"Caboolture Hotel Motor Inn", "Caboolture Hotel/Motel Inn",
"Morayfield Hotel/Motel" and "Wellers Hotel-Motel Inn". Up until
26 May 1988, a large neon sign contained the words "Caboolture
Hotel Motel"; but on that day it was replaced by a similar sign
bearing the words "Caboolture Hotel Motor Inn". Uniforms and the
hotel letterhead previously used the name "Caboolture Hotel
Motel".
The advertisements for the Caboolture Hotel Motel are
extensive and generally highlight the "specials" available at the
liquor barn drive-in, as well as the family restaurant and the
available entertainment. The advertisements variously referred
to the hotel as the "Caboolture Hotel Motor Inn", the "Caboolture
Hotel Motel", and ""Wellers Caboolture Hotel Motor Inn". The
address is given as Morayfield Road, Morayfield or as Morayfield
Road, Caboolture.
Mr. Street, the male applicant, deposes that on 27
January 1988 he received a letter at the "Caboolture Motel",
addressed to the "Caboolture Hotel Motel", with the address being
given as 4 Lower King Street, Caboolture. Mr. Street readdressed
the letter and forwarded it on tg the respondents' hotel. He
deposes that on 9 May 1988, a person from the Department of
Social Security at Redcliffe was inquiring after a person who had
allegedly stayed at the Motel on 29 April 1988. It appears that
the inquiry ought to have been directed to the Caboolture Hotel
Motel, but that the enquirer had received the telephone number of
the Caboolture Motel. On 16 May 1988, persons mistakenly arrived
at the premises of the applicants, but in fact had made a booking
at the respondents' hotel.
Mr. Street also deposes, on an information and belief
basis, to an occasion when a person who had booked at the
Caboolture Motel in February had mistakenly stayed at the
Caboolture Hotel Motel.
The Caboolture Motel is the only motel in Caboolture. It
consists of ten self-contained units and a laundry, with a
manager's residence and reception area. It is advertised in
Jasons Queensland Accommodation Guide, the R.A.C.Q. motorists
accommodation guide, and in the Caboolture Shire Information
Guide, of which about 20,000 glossy copies are issued every six
months.
The applicants assert that carrying on the hotel-motel
business as the "Caboolture Hotel Motor Inn" constitutes
misleading and deceptive conduct, in trade or commerce, contrary
to s.52 of the Trade Practices Act 1974. It is said that there
are two aspects of this conduct: the first as to its capacity to
mislead members of the public concerning the business conducted
by the respondents and the business of the applicants, and
secondly, as to the misdescription of the locality of the
business of the respondents.
It was then submitted that the applicants and the
respondents are engaged in the same business in a relatively
small community, that the "keyword" in the name of each business
is the same, and that it is conducted in a field where consumers
would not be expected to exercise a fine discrimination.
It is clear that the businesses are by no means
identical. The physical layout of each business is different.
The hotel-motel complex has its drive-in liquor barn as an
important part of its operation as well as the provision of
entertainment and restaurant meals. The provision of motel type
accommodation is but a facet of a much larger operation. The
applicants' business, on the other hand is essentially smaller,
and centred on the provision of accommodation, although meal
facilities are available.
The evidence concerning the operation of the Caboolture
Motel uniformly points to a well-run and efficient business. In
my view, it has acquired a not insignificant reputation, which
has attached to the name "Caboolture Motel".
The question is one of impression and of fact and
degree, and regard must be had to the relevant section of the
public which, for present purposes, consists of those people who
are likely to require, or might want, accommodation, of a motel
kind, in and around the district of Caboolture. The question is
whether they are likely to be misled or deceived by the first
respondent's conduct in using the name, "Caboolture Hotel Motor
Inn",
In Burswood Management Ltd. v. Burswood Casino
Motel/Hotel Pty.Ltd. (1985) 7 F.C.R. 186, Toohey J. succinctly
summarised the law and then went on to comment on the difficulty
involved in the use of descriptive words. He said, at p.190:-
"Conduct infringes s.52 of the Trade Practices Act
if it is misleading or deceptive or is Likely to
mislead or deceive. This is a question of fact to
be determined by the court; it is unnecessary to
Prove that the conduct in question actually
deceived or misled anyone: Parkdale Custom Built
Furniture Pty.Ltd. v. Puxu Pty.Ltd. (1982) 149
C.b.R. I9L at . The class of consumers who may
be misled in the present case is very much the
public at large, having regard to the impact of
newspaper advertising. The intention of the
respondents is not relevant; the question is
whether their conduct was misleading or deceptive
or likely to mislead or deceive: Hornsby Building
Information Centre ety tt v. Sydney Buildin
Information Centre Ltd. (1978) 140 C.L.R. 216 at
228. An applicant for relief must be associated,
in the minds of members of the public or the
relevant section, with a particular name or
product otherwise conduct is not likely to mislead
or deceive: Dairy Vale Metro Co-Operative Ltd. v.
Brownes Dair ae (1981) 35 A.L.R. 494; Taco Co.
of Australia Inc. v. Taco Bell Pty.Ltd. (1982) 4
A.L.R. L77. Conduct which mérely causes
uncertainty in the minds of relevant members of
the public does not contravene s. 52: Parkdale.
Conduct is not misleading or deceptive unless it
contains or conveys a misrepresentation: Taco.
If a mame is no more than merely descriptive of a
particular type of business, its use by others who
carry on the same type of business does not
deceive or mislead as to the nature of the
business described: Hornsby at 230. But a name
may be more than descriptive: it may relate to a
commercial activity of the applicant or be
10.
associated in the minds of members of the public
with that activity and in that regard mislead."
In my opinion there are various categories of persons
who are likely to be misled or deceived by the first respondent's
use of the name "Caboolture Hotel Motor Inn". One of those
categories would include those who had learned of the "Caboolture
Motel" from the personal recommendation of others. If the
persons who received that recommendation were travelling past the
respondents' "Caboolture Hotel Motor Inn", there would be at
least some who would not only be confused or uncertain as to
whether that was the establishment recommended to them, but would
also believe that that was the place recommended. Caboolture is
a small district with a small population and, for at least some
of this category of persons, in my opinion it would make no
difference whether the property were called the "Caboolture Hotel
Motel", the "Caboolture Hotel~Motel Inn", or the "Caboolture
Hotel Motor Inn". In my opinion, the evidence of an occasion when
a person had in fact been booked at the "Caboolture Motel" but
stayed (apparently quite happily) at the "Caboolture Hotel
Motel", is but an illustration of the deception likely from the
similarity of names.
I think the physical differences between the two
businesses and their buildings would be sufficient to prevent
persons who had patronised one or the other from being misled or
deceived into thinking that the other business was the one at
which they had stayed. I think that persons who had not
previously stayed at either place and who had heard of, read of,
11.
or been recommended to the "Caboolture Motel", might, on seeing a
business described as the Caboolture Hotel Motor Inn, be misled
into thinking that that was the business that they had been told
about or had read about.
One has to recognise that it will not be on every
occasion that the Caboolture Hotel Motor Inn will be so
compendiously described. But here the primary word is
"Caboolture". For many years the motel of the applicants was the
only business in or near Caboolture offering motel type
accommodation. It still is the only motel in Caboolture. Given
the nature of the locality and its population, one ordinarily
would not expect two Caboolture Motels. The use of the name
"Caboolture Hotel Motor Inn" has only very recently been adopted.
In Bridges v. Bridge Stockbrokers Ltd. (1984) 4 F.C.R.
21, Sheppard J. at first instance was concerned with stockbroking
businesses named "Bridges, Son & Shepherd" and "Bridge
Stockbrokers Ltd.". There his Honour was not concerned with
descriptive or geographical words, which is the cause of the real
difficulties in this case. In concluding that the applicants
were entitled to relief, he noted at p.36:-
"Neither of the names in question is descriptive of
the business of either undertaking. It is true
that the company uses the word "Stockbrokers" but
the word in question is "Bridge". It is the use
of that word which may mislead members of the
public. It follows that this case is different
from cases such as Hornsby Building information
Centre Pty. Ltd. v. Sydney Building information
Centre LEAL {IST8) 140 C.L.R. 216 and Motorcharge
Pty.Ltd. v. Motorcard Pty.Ltd. (1982) 42 A.L.R.
where the names in question were descriptive
of the businesses carried on by the parties in
12.
those cases. It is well recognised that the task
of an applicant for relief in a case where the
name in question is descriptive of the business
carried on is more difficult than it may be in
other cases."
Implicit in those observations is the conclusion that the task
where descriptive words are used is not necessarily impossible.
Shepperd J. observed, at p.37:-
"Although the names ''Bridges, Son & Shepherd' and
*Bridge Stockbrokers Ltd.' are apparently
different when used in juxtaposition, people
encountering one or other of them may not find
them so different. That, in my opinion, applied
not only to members of the public lacking
familiarity with the stockbroking industry, but
also to those engaged in it."
A similar observation may be made in the present case. The names
"Caboolture Motel" and "Caboolture Hotel Motor [Inn" are
apparently different when used in juxtaposition, but people
encountering one or other of them may not find them so different,
and information obtained by reading accommodation guides, or from
oral recommendations by others, is frequently only imperfectly
recollected.
When Bridges went on appeal, (1984) 4 F.C.R. 460,
Smithers and Woodward JJ. noted at p.468:-
"If one choses a name so close to that of an
operator already in the business that confusion is
probable, there will be a recurring need in normal
business for care and discrimination. Where the
Mame of that party is such as, in various
circumstances, to carry additional overtones, then
one is entering the area of misrepresentation.
The overtones in this name are that, in the
stockbroking business, you will find "Bridge" or
13.
"Bridges" here and not elsewhere. To throw that
into the public arena, where there are people with
no duty or inclination to exercise a fine
discrimination in the matter, nor any feeling of
necessity for so doing, creates a likelihood of it
being understood as saying what it seems to say.
Such persons would be unlikely to expect that the
company would claim to be the "Bridge" of the
stockbroking world unless it was claiming also to
be "Bridges".
Their Honours went on to note, at the same page:-
"(the learned primary judge]...was required to, and
did, direct his mind to the assessment of the
degree of probability that relevant persons might
by reason of the trading by the company in the
name 'Bridge Stockbrokers Limited' be led into
error, and to the numerical strength of that body
of persons. It was his decision that significant
numbers of the public who in various capacities
have occasion to deal with stockbrokers are likely
to be misled or deceived (not merely confused) by
the company's conduct in using the 'Bridge' name.
In our opinion the learned judge had before him
circumstances from which the inference he drew
might properly be drawn.
In the course of his judgment, his Honour said
that he had 'given the matter a good deal of
anxious consideration' and engaged in 'a not
insubstantial judgmental exercise'. He stressed
that, in the end, 'The matter must be one of
impression. It is a question of fact and degree.'
The case does seem to fall very close to the
borderline between conduct which is misleading and
deceptive within the meaning of the Act and
conduct which is merely confusing.
We have felt the same doubts which troubled his
Honour but, at the end of the day, we find
ourselves in agreement with the conclusion which
he reached."
I confess, in the circumstances of this case, to a
similar anxiety but, in the end, am satisfied that there is a
serious question to be tried as to whether the conduct is not
merely confusing but is conduct which is likely to mislead or
14.
deceive, contrary to the Act.
The second ground on which it was suggested that the use
of the name "Caboolture Hotel Motor Inn" is misleading or
deceptive contrary to s.52 of the Act, was that it would mislead
people into believing that the hotel-motel was in Caboolture,
whereas, in fact, it is a short distance, about 200 metres,
outside the boundary of Caboolture, in Morayfield. Shortly put,
the choice of the primary descriptive word "Caboolture" in the
name is misleading because, in fact, the hotel-motel complex is
not in Caboolture.
The Caboolture/Morayfield boundary is some 1.5
kilometres from the business premises of the applicant, and it is
not impossible to imagine that, with further development,
Morayfield reasonably might be regarded as a suburb of
Caboolture. However, the suggestion was that, if a person were
to make a reservation based on the name "Caboolture Hotel Motor
Inn", they would find themselves outside Caboolture, and some 1.5
km. from the centre of Caboolture.
If this were the sole basis of the application, I would
not grant interlocutory relief. In my view, the misdescription
as to locality is de minimis.
In the entirety of the matter, however, it does have
some significance. In this case, I have had to consider words
that are not fancy or invented, but are descriptive or
geographic. I have used the phrase "descriptive or geographic"
15.
here and earlier, rather than simply "descriptive", because,
while frequently a geographical word is descriptive of a
connection between the business and the place where it is
conducted, it is not precisely accurate to label the word
"Caboolture" as descriptive of the hotel-motel business of the
first respondents.
The primary submission of the respondents was confined
to the name "Caboolture Hotel Motor Inn", although it was made
plain that no concession was made that, in particular, the use of
"Caboolture Hotel Motel" would constitute misleading or deceptive
conduct.
In Office Cleaning Services Ld. v. Westminster Window
and General Cleaners Ld. (1946) 63 R.P.C. 39, (which was a
passing off case), Lord Simonds said, at p.43:-
"So long as descriptive words are used by two
traders as part of their respective trade names,
it is possible that some members of the public
will be confused whatever the differentiating
words may be...in Turton v. Turton (42 Ch. D.128)
the possibility of blunders by the public was held
not to disentitle the defendant from trading in
his own name though the plaintiff had long traded
in the same name. It comes in the end, I think,
to no more than this, that where a trader adopts
words in common use for his trade name, some risk
of confusion is inevitable. But that risk must be
run unless the first user is allowed unfairly to
monopolise the words. The Court will accept
comparatively small differences as sufficient to
avert confusion. A greater degree of
discrimination may fairly be expected from the
public where a trade name consists wholly or in
part of words descriptive of the articles to be
sold or the services to be rendered."
16.
This passage was referred to, with approval, by Stephen J. in
Hornsby Building Information Centre Pty. Ltd. v. Sydney Building
Information Centre Ltd. (1978) 140 C.L.R. 216 at p.229, where he
said:-
"There is a price to be paid for the advantages
flowing from the possession of an eloquently
descriptive trade name. Because it is descriptive
it is equally applicable to any business of a like
kind, its very descriptiveness ensures that it is
not distinctive of any particular business and
hence its application to other like businesses
will not ordinarily mislead the public."
And later,
"The risk of confusion must be accepted, to do
otherwise is to give to one who appropriates to
himself descriptive words an unfair monopoly in
those words and might even deter others from
pursuing the occupation which the words describe."
Here, however, I am satisfied there is an established
secondary meaning for the geographically descriptive name of the
applicants' business.
It was submitted by the respondent that the use of the
word "hotel" describes a different kind of establishment and it
was said that the differences in descriptive words used was
sufficient to avert confusion. A difficulty, however, is that
the principal descriptive word, "Caboolture", is not accurate. I
do not think that slight differences concerning geographically
descriptive words has anything like the same weight where one of
the descriptive words is not in fact descriptive of the locality
of the business.
17.
I am satisfied that the applicants have established a
serious question to be tried as to whether the conduct of the
respondents amounts to conduct contrary to s.52 of the Trade
Practices Act 1974. I am very conscious of the consideration
that in many cases of interlocutory applications such as this, in
a practical sense, the granting or refusal of interlocutory
relief is decisive. I have therefore looked at the applicants'
case for interlocutory relief carefully and, it must be said,
with some anxiety.
However, the mere fact that the name under which the
business of the motel has been conducted for many years is a
combination of a geographic description of the place at which the
business is conducted and a word descriptive of the nature of the
business does not mean that it is without a remedy to protect the
goodwill attaching to that business. What it does mean is that
one has to carefully analyse whether, in fact, conduct which is
claimed to mislead or deceive, or which is said to be likely to
mislead, really can be said to have that consequence.
As to the balance of convenience, Toohey J. in Burswood
Management Ltd. v. Burswood Casino Motel/Hotel Pty.Ltd. (supra)
noted at p.193:-
"...if, as I hold, the use of the name Burswood
Casino Motel/Hotel Pty.Ltd. is in breach of the
Act, an assessment at a later stage of loss
suffered by the applicants by the use of that name
presents great difficulties."
In my opinion a similar consideration obtains in the
18.
present circumstances. The damage, including damage to the
goodwill of the applicants, up to trial of the action would be
very difficult to assess. The inconvenience and expense to the
respondents in granting interlocutory relief to the applicants is
not, on the evidence, by any means high. Mr. Bennie deposes
that, if the name was required to be changed again, circulars
would have to be sent out to regular customers of the mote]
units, and to advertising publications such as "Jasons", which is
an accommodation guide, and the Caboolture and Shire Gazette with
the Queensland Government Tourist Bureau would have to be amended
accordingly. Also, signs would have to be removed, and
stationery and other printed material would have to be amended.
The business has been operating under the name "Caboolture Hotel
Motor Inn" for only a short period. The first respondent did not
change the name to "Caboolture Hotel" as was indicated to be the
intention in the letter of 9 March 1988, but chose to adopt
"Caboolture Hotel Motor Inn".
In my view, the consideration of where the balance of
convenience falls favours the grant of the interlocutory relief
sought, on the usual undertaking as to damages.
I will hear the parties on costs.
{ certify that this and the JF precedhiag
pages are a true copy of the reasons for
judgment herein of His Honour
Mr. Justice Spender
AT, i Associate.
DatéqG = b) 68
Counsel for applicant:
instructed by:
Counsel for respondent:
instructed by:
Date of Hearing:
Date of Judgment:
19.
Mr. B.D. 0'Donnell
Marshall & L'Estrange
Mr. P.D.T. Applegarth
Catt Smith
1 June 1988
22 June 1988