Belflora Pty Ltd v Vinflora Pty Ltd and Anor [2020] NSWSC 1229

Supreme Court New South Wales

Medium Neutral Citation: Belflora Pty Ltd v Vinflora Pty Ltd and Anor [2020] NSWSC 1229 Hearing dates: 20, 21 and 30 July, 12 August 2020 Decision date: 11 September 2020 Jurisdiction: Equity - Expedition List Before: Sackar J Decision: See 161-162 Catchwords: CONTRACTS — Formation — Agreement — Intention to make concluded bargain — Where business partners (joint directors of company) splitting business — Where post contractual conduct demonstrates parties intended to enter legal relations CONTRACTS — Term — Where parties did not discuss any term as to duration — Contract for an indefinite period CONTRACTS — Termination — Repudiation or abandonment of contract — Where contract still being performed but with breaches by both parties COMMERCE — Restraint of trade — Validity and reasonableness — Legitimate interests — Where restraint intended to make business look different — Found to be anti-competitive — Restraint unreasonable to protect goodwill — Lack of evidence regarding goodwill — Refusal to grant injunctive relief Legislation Cited: Restraints of Trade Act 1976 (NSW) Cases Cited: Adamson v New South Wales Rugby League Ltd (1991) 31 FCR 242 Allied Dunbar (Frank Weisinger) Ltd v Weisinger [1988] IRLR 60 Box v Federal Commissioner of Taxation (1952) 86 CLR 387 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Brogden v Metropolitan Railway Company (1877) 2 App Cas 666 Carr v J A Berriman Pty Ltd (1953) 89 CLR 327 Clifton (Liq) v Kerry J Investment Pty Ltd t/as Clenergy [2020] FCAFC 5 Commissioner of Taxation v Murray (1998) 193 CLR 605 County Securities Pty Ltd v Challenger Group Holdings Pty Lts [2008] NSWCA 193 Crawford Fittings v Sydney Valve & Fittings Pty Ltd (1988) 14 NSWLR 438 Cruttwell v Lye (1810) 17 Ves 335; 34 ER 129 Dalgety Wine Estates Pty Ltd v Rizzon (1979) 141 CLR 552 Doherty v Allman (1878) 3 App Cas 709 Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1998) 14 NSWLR 523 Esso Petroleum Co Ltd v Harper's Garage (Stourport) Ltd [1968] AC 269 Federal Commissioner of Taxation v Murray (1998) 193 CLR 605 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Fitzgerald v Masters (1956) 95 CLR 420 Foley v Classique Coaches Ltd [1934] 2 KB 1; [1934] All ER Rep 88 GBAR (Australia) Pty Ltd & Ors v Brown & Anor [2020] QSC 14 Hanna v OAMPS Insurance Brokers Ltd [2010] NSWCA 267 In Inland Revenue Commissioners v Muller & Co's Margarine Ltd [1901] AC 217 Integrated Computer Services Pty Ltd v Digital Equipment Corp (Aust) Pty Ltd (1988) 5 BPR 11,110 IRAF Pty Ltd v Graham [1982] 1 NSWLR 419 Isaac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343 J C Williamson Ltd v Lukey (1931) 45 CLR 282 J Kitchen & Sons Pty Ltd v Stewart's Cash and Carry Stores (1942) 66 CLR 116 John Holland Pty Ltd v Kellogg Brown & Root Pty Ltd [2015] NSWSC 451 Karacominakis v Big Country Developments Pty Ltd (2000) 10 BPR 18,235; [2001] ANZ ConvR 513; [2000] NSWCA 313 Keays v JP Morgan Administrative Services Ltd [2012] FCAFC 100 Kone Elevators Pty Ltd v McNay (1997) ATPR 41-564 (NSW Court of Appeal) Kosciuszko Thredbo Pty Ltd v ThredboNet Marketing Pty Limited [2013] FCA 563 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623 Lawrence v Ciantar [2020] NSWCA 89 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181 Masterton Homes Pty Ltd v Palm Assets Pty Ltd (2009) 261 ALR 382 McHugh v Australian Jockey Club Ltd and Others (No 13) [2012] FCA 1441 Mount Bruce Mining Pty Limited v Wright Prospecting Pty Limited (S99/2015; S102/2015) (2015) 256 CLR 104 Nordenfelt v The Maxim Nordenfelt Guns and Ammunition Company Ltd [1894] AC 535 Peninsula Securities Ltd (Respondent) v Dunnes Stores (Bangor) Ltd (Appellant) (Northern Ireland) [2020] UKSC 36 Peters (WA) Ltd v Petersville Ltd (2001) 205 CLR 126 Porter v Sundance Resources Ltd (No 2) [2015] WASC 493 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17 Quijiao Liu & Anor v Yuqing Xiao & Ors [2020] NSWSC 289 Ryder v Frohlich [2004] NSWCA 472 Stacks Taree v Marshall [No 2] [2010] NSWSC 77 Tank Lining Corp v Dunlop Industries Ltd (1982) 40 OR (2d) 219; 140 DLR (3d) 659 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 Trego v Hunt [1896] AC 7 Tullet Prebon (Australia) Pty Ltd v Purcell (2008) 175 IR 414; [2008] NSWSC 852 Vandervell Products v McLeod [1957] RPC 185 Watson v Foxman (1995) 49 NSWLR 315 Woolworths v Olson [2004] NSWCA 372 Texts Cited: J D Heydon, Heydon on Contract (2019, Thomson Reuters) J D Heydon, The Restraint of Trade Doctrine (2018, 4th ed, LexisNexis Butterworths) Category: Principal judgment Parties: Belflora Pty Ltd (plaintiff) Vinflroa Pty Ltd (first defendant) Vamsi Nagendra Babu Uppalapti (second defendant) Representation: Counsel: B Coles QC, D Allen (plaintiff) A R Moses SC, J Simpkins (first and second defendants)