Narellan Franchise Pty Ltd v RBME Pty Ltd (No 2) [2022] NSWSC 1590

Supreme Court New South Wales

Medium Neutral Citation: Narellan Franchise Pty Ltd v RBME Pty Ltd (No 2) [2022] NSWSC 1590 Hearing dates: 27, 31 October; 1 November 2022 Date of orders: 22 November 2022 Decision date: 22 November 2022 Jurisdiction: Equity - Expedition List Before: Parker J Decision: See [248]-[251] Catchwords: RESTRAINT OF TRADE – franchise agreement – swimming pool supply and installation business- post-contractual restraint – claimed injunction against carrying on business similar to franchised business – reasonableness – whether franchisor entitled to enforce restraint in interest of incoming franchisee – whether franchisor entitled to benefit from franchisee's accumulated skill and experience – goodwill – claimed injunction against soliciting customers with uncompleted contracts – reasonableness – hardship – injunctions refused CONTRACT – construction – franchise agreement – restraint of trade – deed poll executed by franchisee – whether enforceable by supplier of franchised goods – reasonableness Legislation Cited: Corporations Act 2001, s 286 Evidence Act 1995, s 79 Restraints of Trade Act 1976 Uniform Civil Procedure Rules 2005, r 31.19 Cases Cited: BB Australia Pty Ltd v Karioi Pty Ltd [2010] NSWCA 347 Chipsaway International Ltd v Kerr [2009] EWCA Civ 320 Cong v Sheng (No 3) [2021] NSWSC 947 Dyno-Rod Plc v Reeve [1999] FSR 148 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296 Isaac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343 Label Manufacturers Australia Pty Ltd v Chatzopoulos [2022] NSWSC 1059 Lu v Lim (1993) 30 NSWLR 332 Lyne-Pirkis v Jones [1969] 1 WLR 1293 Narellan Franchise Pty Ltd v RBME Pty Ltd [2022] NSWSC 988 Netglory Pty Ltd v Caratti [2013] WASC 364 Stenhouse Australia Ltd v Phillips [1974] AC 391 Category: Principal judgment Parties: Narellan Franchise Pty Limited (First Plaintiff) Narellan Pools Pty Limited (Second Plaintiff) RBME Pty Limited (First Defendant) Tim Ranieri (Second Defendant) Matthew John Ranieri (Third Defendant) T&M Pools Pty Limited (Fourth Defendant) Representation: Counsel: PM Knowles SC (Plaintiffs) A Fernon SC/N Kirby (Defendants)