Federal Court of Australia
FEDERAL COURT OF AUSTRALIA
Digital Central (Assets) Pty Ltd v Stefanovski [2017] FCA 738 File number: QUD 865 of 2016
Judge: LOGAN J
Date of judgment: 30 June 2017
Catchwords: CONTRACT – interpretation – construction of term – intention to restrain competition TRADE PRACTICES – misleading or deceptive conduct – unconscionable conduct – breach of statutory duty of good faith in franchise agreement – concealment of intention before and after termination and sale of franchise to cause company to engage in competition with franchise business – whether statements made and omissions were misleading or deceptive – injunction – damages CONTRACT – intellectual property – confidential information – restraint of trade – obligations of franchisee as to confidential information after termination of contract – whether subject to implied term in contract – whether dependent on equitable rules concerning confidentiality – categories of confidential information – trade secrets – general know-how of employees – effect of explicit contractual restraint
Legislation: Competition and Consumer Act 2010 (Cth) ss 51ACB, 80, 82, 87 Evidence Act 1995 (Cth) s 140 Restraints of Trade Act 1976 (NSW) Australian Consumer Law ss 18, 21, 232 Competition and Consumer (Industry Codes – Franchising) Regulation 2014 (Cth)
Cases cited: Amadio Pty Ltd v Henderson (1998) 81 FCR 149 Coco v AN Clark (Engineers) Ltd (1968) 1A IPR 587 Colin R Price & Associates Pty Ltd v Four Oaks Pty Ltd [2017] FCAFC 75 Commissioner of Taxation v Murry (1998) 193 CLR 605 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169 Del Casale v Artedomus (Aust) Pty Ltd (2007) 73 IPR 326 Dymocks Franchise Systems (NSW) Pty Ltd v Todd [2002] 2 All ER (Comm) 89 Fraser v NRMA Holdings Limited (1995) 55 FCR 452 Gilford Motor Co Ltd v Horne [1933] Ch 935 Hepples v Commissioner of Taxation (1992) 173 CLR 492 KA & C Smith Pty Ltd v Ward (1998) 45 NSWLR 702 Re Day [No 2] (2017) 91 ALJR 518 Seager v Copydex Ltd [1967] 1 WLR 923 Seager Copydex Pty Ltd (No 2) [1969] 1 WLR 809
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