Petersville Ltd v Peters (WA) Ltd [1999] FCA 5

FEDERAL COURT OF AUSTRALIA

Petersville Ltd v Peters (WA) Ltd [1999] FCA 5

RESTRAINT OF TRADE – sale of business – first applicant and predecessor of second applicant manufactured and sold ice-cream in Western Australia under the name "Pauls" in competition with the respondent – respondent purchased that business in 1983 – sale agreement included covenant precluding applicants from selling any ice-cream in Western Australia for a minimum period of nearly 15 years and, at respondent's option, for further periods extending the restraint to a period of nearly 30 years – vendors granted respondent licence to use Pauls names, know-how and technical and marketing information ("the licensing arrangements") – whether the licensing arrangements took the restraint out of the doctrine of common law restraint of trade – whether the restraint was reasonable as between the parties – whether the restraint was reasonable in the public interest – whether the Court could or should deny declaratory relief on equitable grounds– whether the restraint was solely for the protection of goodwill within s 51(2)(e) of the Trade Practices Act 1974 (Cth) Trade Practices Act 1974 (Cth) s 51(2)(e) Esso Petroleum Co Ltd v Harper's Garage (Stourport) Ltd [1968] AC 269 applied Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co, Ltd [1894] AC 535 referred to Trego v Hunt [1896] AC 7 referred to Attwood v Lamont [1920] 3 KB 571 at 584-586 referred to Amoco Aust Pty Ltd v Rocca Bros Motor Engineering Pty Ltd (1974) 133 CLR 288 applied Peters American Delicacy Co Ltd v Patricia's Chocolates (1947) 77 CLR 574 referred to Adamson v NSW Rugby League (1991) 103 ALR 319 referred to Bridge v Deacons [1984] AC 705 referred to Butt v Long (1953) 88 CLR 476 at 486 applied Herbert Morris Ltd v Saxelby [1916] AC 688 referred to Federal Commissioner of Taxation v Murry (1998) 155 ALR 67 referred to Connors Bros Ltd v Connors [1940] 4 All ER 179 followed Mayfair Trading Co. Pty Ltd v Dreyer (1958) 101 CLR 428 referred to Geraghty v Minter (1979) 142 CLR 177 referred to PETERSVILLE LTD and PETERS FOODS AUSTRALIA PTY LTD v PETERS (WA) LIMITED