Federal Court of Australia
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY VG 438 of 1993
BETWEEN: KAYTONRUBY PTY LTD
First Applicant
CHRISTOPHER WAI HEANG LEONG
Second Applicant
LILLIAN POH HAR LEONG
Third Applicant
AND: GLEV FRANCHISES PTY LTD
First Respondent
GLEV PTY LTD
Second Respondent
EVANGELOS DEMETRIOU CHRISTOU
Third Respondent
TULLOCH AND ASSOCIATES PTY LTD
Fourth Respondent
ALAN TULLOCH
Fifth Respondent
FRANCHISE DEVELOPMENTS PTY LTD
Sixth Respondent
LEO REYES
Seventh Respondent
JUDGE: RYAN J
DATE OF ORDER: 11 june 1998
WHERE MADE: MELBOURNE
MINUTES OF ORDER
THE COURT ORDERS: 1. That the application be adjourned for further directions to a date to be fixed. Note: Settlement and entry of orders are dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY VG 438 of 1993
BETWEEN: KAYTONRUBY PTY LTD
First Applicant
CHRISTOPHER WAI HEANG LEONG
Second Applicant
LILLIAN POH HAR LEONG
Third Applicant
AND: GLEV FRANCHISES PTY LTD
First Respondent
GLEV PTY LTD
Second Respondent
EVANGELOS DEMETRIOU CHRISTOU
Third Respondent
TULLOCH AND ASSOCIATES PTY LTD
Fourth Respondent
ALAN TULLOCH
Fifth Respondent
FRANCHISE DEVELOPMENTS PTY LTD
Sixth Respondent
LEO REYES
Seventh Respondent
JUDGE: RYAN J
DATE: 11 june 1998
PLACE: MELBOURNE
REASONS FOR JUDGMENT
This is an action by a corporate applicant and its two directors claiming damages from the respondents arising out of the entry by the applicants into a franchise agreement and the conduct of the business of a "Pizza Haven" outlet pursuant to that agreement. In June 1990 the second applicant, Mr Leong, saw the following advertisement in the "Age" newspaper: LOOK! PIZZA HAVEN WANTS YOU! . Ambition, $30,000 plus asset backing will qualify you For information call Leo Reyes on (03) 867 7666 FRANCHISE DEVELOPMENTS Franchise consulting and marketing Melbourne, Sydney, Brisbane Adelaide, Perth As a result, Mr Leong met Mr Reyes an employee of the sixth respondent, Franchise Developments Pty Ltd ("Franchise Developments"). Mr Reyes consulted in Mr Leong's presence a "disclosure document" prepared as at October 1989 and referred to the profit projections which were in these terms:
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