SPAR Licensing Pty Ltd v MIS QLD Pty Ltd (No 2) [2012] FCA 1116

FEDERAL COURT OF AUSTRALIA

SPAR Licensing Pty Ltd v MIS QLD Pty Ltd (No 2) [2012] FCA 1116 Citation: SPAR Licensing Pty Ltd v MIS QLD Pty Ltd (No 2) [2012] FCA 1116

Parties: SPAR LICENSING PTY LTD ACN 002 965 193 and SPAR AUSTRALIA LIMITED ACN 102 281 167 v MIS QLD PTY LTD ACN 132 323 418, CHRISTOPHER MARTIN SICHTER, SHARON LEE WARD and ANTHONY PAUL APLIN; MIS QLD PTY LTD ACN 132 323 418, CHRISTOPHER MARTIN SICHTER, SHARON LEE WARD and ANTHONY PAUL APLIN; SPAR LICENSING PTY LTD ACN 002 965 193 and SPAR AUSTRALIA LIMITED ACN 102 281 167

File number: NSD 1501 of 2011

Judge: GRIFFITHS J

Date of judgment: 15 October 2012

Catchwords: CONTRACT – termination of franchise agreement – no express right of termination – whether implied right of termination – whether breach of franchise agreement COMPETITION – s 45(2) Competition and Consumer Act 2010 (Cth) – whether provision an exclusionary provision – whether provision has substantial purpose and/or effect or likely effect of substantially lessening competition in a market – definition of relevant market –competitors in that market TRADE PRACTICES – s 51AD Trade Practices Act 1974 (Cth) – Trade Practices (Industry Codes-Franchising) Regulations 1998 – whether breach of clauses 6B and 10 of Franchising Code of Conduct – whether current disclosure document provided to prospective franchisee – whether relief granted under ss 82 or 87 TRADE PRACTICES – s 18 Australian Consumer Law – representations prior to execution of franchise agreement – representations that franchise agreement could be terminated on payment of termination and related fees – whether representations made – whether representations misleading and/or deceptive – whether representations relied upon – whether loss or damage suffered – whether causal link between representation and loss suffered – whether relief granted under ss 82 or 87 Competition and Consumer Act 2010 (Cth)