A & A (Sydney) Pty Ltd v YUM! Restaurants Australia Pty Ltd [2014] FCA 678

FEDERAL COURT OF AUSTRALIA

A & A (Sydney) Pty Ltd v YUM! Restaurants Australia Pty Ltd [2014] FCA 678 Citation: A & A (Sydney) Pty Ltd v YUM! Restaurants Australia Pty Ltd [2014] FCA 678

Parties: A & A (SYDNEY) PTY LTD and others named in the schedule v YUM! RESTAURANTS AUSTRALIA PTY LTD

File number(s): NSD 618 of 2014

Judge(s): JAGOT J

Date of judgment: 24 June 2014

Catchwords: PRACTICE AND PROCEDURE – interlocutory injunction – respondent franchisor proposed to implement marketing strategy setting maximum price and product range for franchisees – applicant franchisees commenced proceedings seeking to restrain respondent from implementing strategy – whether serious question to be tried – balance of convenience test – whether damages would be an adequate remedy were injunction refused – whether effect of injunction would be to prevent respondent as market participant from competing on price – potential effect of injunction on third parties CONTRACTS – whether serious question to be tried as to whether implementation of marketing strategy by respondent would breach implied terms of franchise agreement CONSUMER LAW – whether serious question to be tried as to whether implementation of marketing strategy would involve unconscionable conduct by respondent under Australian Consumer Law s 21

Legislation: Australian Consumer Law s 21

Cases cited: AMC Commercial Cleaning (NSW) Pty Ltd v Coade [2010] NSWSC 832 Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57; [2006] HCA 46 Beecham Group Ltd v Bristol Laboratories Pty Ltd (1968) 118 CLR 618 Samsung Electronics Company Ltd v Apple Inc (2011) 217 FCR 238; [2011] FCAFC 156 Shercliff v Engadine Acceptance Corporation Pty Ltd [1978] 1 NSWLR 729