Dean, R.E. & Ors Brian Hickey Invention Research Pty Ltd & Anor [1988] FCA 352

JUDGMENT No. 2&27SS

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CATCHWORDS

Trade Practices Act s.52 - Sale of goodwill of business allegedly

exploiting a secret formula - No secret formula in reality - Orders made under s.87 including orders for refunding of moneys paid and payment of compensation by way of interest - Scope of

s.87.

Trade Practices Act 1974, ss.52, 87.

DEANE & ORS -V- BRIAN HICKEY INVENTION RESEARCH PTY LIMITED &

ANOR

NSW G.17 of 1987

Burchett J. Sydney 6 July 1988

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IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY ) No. G17 of 1987 ) GENERAL DIVISION )

BETWEEN:

REGINALD ERIC DEANE and DEBORAH ANN DEANE

First Applicants

DHC ROOF REPAIRS PTY LIMITED

Second Applicant

BRIAN HICKEY INVENTION RESEARCH PTY LIMITED

First Respondent

BRIAN JAMES HICKEY

Second Respondent REASONS FOR JUDGMENT

BURCHETT J.

In or about the year 1975 Mr. Noel vail, a chemical engineer and the New South Wales Manager of the Plastics Division of Ciba-Geigy Australia Limited, devised a waterproof coating with high resistance to ultra-violet light degeneration for use in situations exposed to full sun. Mr. Vail did not claim to have made any startling new discovery. He had utilized acrylic resin, an appropriate solvent, and an ultra-violet stabiliser which Ciba-Geigy had developed in Switzerland, known as tinuvin.

Since the material was intended to have a particular application

2.

as a coating for swimming pool surrounds, it was sold as "Pebble

Coat LC263".

About 1978, Mr. Hickey (the second respondent, who is a director of the first respondent which I shall call his company) approached Ciba-Geigy to obtain a substance suitable for application to roofs. He was provided with some Pebble Coat LC263, which proved so satisfactory that thereafter he purchased substantial quantities of the substance. He sprayed it on deteriorated tile, slate, cement, asbestos-cement, and iron roofs. Mr. Hickey was engaged, through his company, in the business of roof restoration, for the purposes of which he followed a particular procedure involving the steam cleaning of