Gough & Gilmour Holdings Pty Limited v Caterpillar of Australia Limited (No. 11) [2002] NSWIRComm 354

Industrial Relations Commission of New South Wales in Court Session

CITATION : Gough & Gilmour Holdings Pty Limited v Caterpillar of Australia Limited (No. 11) [2002] NSWIRComm 354 FIRST APPLICANT Gough & Gilmour Holdings Pty Limited

SECOND APPLICANT Harcourt David Gough

PARTIES : THIRD APPLICANT Anthony Lansley Gilmour

FIRST RESPONDENT Caterpillar of Australia Limited

SECOND RESPONDENT Caterpillar Inc. FILE NUMBER: IRC 5227 of 2000 CORAM: Boland J CATCHWORDS : Unfair contract - Dealership agreements - Sale and service of mining and construction equipment and machinery - Dealership agreements provide for termination without cause on 90 days' notice - Dealership agreements sought to be terminated by respondents - Whether dealership agreements unfair - Whether sale process unfair - Whether overall arrangement between applicants and respondents unfair - Whether Commission in Court Session has jurisdiction to hear and determine application for relief - Orders sought by applicants to keep dealership agreements on foot - Whether orders sought beyond power - Commercial agreements - Long history of difficult relationship between applicants and respondents - Estoppel by convention - Promissory estoppel - Implied term of good faith and reasonableness - The relevance of precedents under the general law and trade practices law to issues arising under section 106 of the Industrial Relations Act 1996 - The rule in Jones v Dunkel - Specific performance - Relational contracts - Trust and confidence - Expert evidence - Notice of termination of commercial contracts - Procedural fairness - Standard form contracts - Unfairness found by virtue of respondents' conduct in seeking to end relationship - Unfairness found in respondents' conduct in the sale process and in seeking to terminate the dealership - Overall arrangement found to be unfair within meaning of sections 105 and 106 of Industrial Relations Act 1996 - Primary relief refused - Further proceedings to hear submissions on alternative forms of relief - No order under s 107 of Industrial Relations Act 1996 - Costs reserved Agricultural Holdings Act 1941 (Cth) Contracts Review Act 1980 Fair Trading Act 1987 Industrial Arbitration Act 1940 LEGISLATION CITED : Industrial Relations Act 1991 Industrial Relations Act 1996 Industrial Relations Act (Unfair Contracts) Amendments Act 2002 Sale of Goods Act 1923 Trade Practices Act 1974 (Cth) Workers' Compensation Act 1905 A & M Thompson Pty Ltd and Others v Total Australia Ltd [1980] 2 NSWLR 1 Akron Securities Limited v Iliffe 1997) 41 NSWLR 353 Alcatel Australia Limited v Scarcella & Ors (1998) 44 NSWLR 349 Apple Communications Ltd v Optus Mobile Pty Ltd [2001] NSWSC 635 Ashfield Brokers & Consultants Pty Limited re Witek, Ex parte [1972] 14 AILR 486 ASX Operations Pty Ltd v Pont Data Australia Pty Ltd (1991) 27 FCR 492 Australian Business Systems v Smith (1989) 29 IR 172 Australian Mutual Provident Society v Avis (1997) 111 IR 1 Autobake Pty Ltd v Budd & Anor (1986) 19 IR 18 Avis v Australian Mutual Provident Society (unreported, Schmidt J, CT 1310 of 1995, 21 December 1995) Baker v National Distribution Services Limited (1993) 50 IR 254 Bamco Villa Pty Limited v Montedeen Pty Limited [2001] VSC 192 Beahan v Bush Boake Allen Australia Ltd (1999) 93 IR 1 Beard v Caltex Oil (Australia) Pty Limited (1979) AR (NSW) 601 Becker & Harry M. Miller Attractions Pty Limited, Re (No. 1) (1972) AR (NSW) 204 Becker v Harry M Miller Attractions Pty Limited, Re (No.2) (1972) AR (NSW) 298 Bennett v BP Australia Limited (unreported, No.632 of 1983, 28 March 1984) BNY Australia v James (1992) 26 NSWLR 57, (1992) 40 IR 1 Bobux Marketing Limited v Raynor Marketing Limited [2001] NZCA 348 Booth v Kritikos Developments Pty Limited (1995) 59 IR 228 Bull v Attorney General (NSW) (1913) 17 CLR 370 Burger King Corporation v Hungry Jack's Pty Ltd [2001] NSWCA 187 Byrne v Australian Airlines Ltd (1995-1996) 185 CLR 410 Caltex Oil (Australia) Pty Limited v Feenan [1981] 1 NSWLR 169 Canizales v Microsoft Corporation & Ors (2000) 99 IR 426 Cavacuitti v XTMCA Ltd (Toyota Motor Corporation Australia Pty Ltd) [2002] NSWIRComm 117 Central Exchange Ltd v Anaconda Nickel Ltd [2002] WASCA 94 Chrysler Jeep Automotive Distributors Australia Pty Limited v Canberra Star Motors Pty Limited & Ors (1997) 79 IR 452 CIC Insurance Ltd v Bankstown Football Club Ltd (1995) 187 CLR 384 at 408 Commonwealth v Verwayen (1990) 170 CLR 394 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd (1986) 64 ALR 481 Courtney Creche Pty Limited v Okko's Fine Art & Custom Framing Pty Limited (1995) 7 BPR 14,337 Crawford Fitting Co v Sydney Valve and Fitting Pty Ltd (1988) 14 NSWLR 438 Cribb v Korn (1911) 12 CLR 205 Custom Credit Corporation Limited v Goldsmith & Ors (1976) AR (NSW) 98 Davies v General Transport Development Pty Limited (1967) 67 AR (NSW) 371 Day v Lumley Life Limited (1999) 90 IR 70 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 Elders Rural Finance Ltd v Smith (1996) 41 NSWLR 296 Elliot v Royal Motor Yacht Club of New South Wales, Newcastle Branch (1988) 42 IR 35 Esanda Finance Corp Ltd v Tong (1997) 41 NSWLR 482 Euphoric Pty Limited v Ryledar & Anor [2002] NSWIRComm 136 Far Horizons Pty Limited v McDonald's Australia Limited [2000] VSC 310 Futuretronics International Pty Limited v Gadzhis (1992) 2 VR 217 Garry Rogers Motors (Australia) Pty Limited v Subaru (Australia) Pty Limited [1999] FCA 903 Gough & Gilmour Holdings Pty Limited v Caterpillar of Australia Limited (unreported, Boland J, 23 November 2000) Gough & Gilmour Holdings Pty Limited v Caterpillar of Australia Limited (No. 7) [2001] NSWIRComm 147Gough & Gilmour Holdings Pty Limited v Caterpillar of Australia Limited (No. 9) [2001] NSWIRComm 260 Gurnett v Macquarie Stevedoring Co Pty Ltd (1955) (SR) NSW 243 Harcourt Brace & Co (Australia) Pty Limited v Cory (1997) 81 IR 321 Hospital Products Limited v United States Surgical Corporation (1984) 156 CLR 41 Hughes Aircraft Systems International v Airservices Australia (1997) 146 ALR 1 Incitec Limited v Barry (1992) 45 IR 148 CASES CITED : Isherwood v Bulter Pollnow Pty Ltd (1996) 6 NSWLR 363 Johnson v Unisys Ltd (2001) All ER 801 Jones v Dunkel (1959) 101 CLR 298 Kham & Nate's Shoes No. 2 v First Bank of Whiting (1990) 908 F 2d 1351 Kingston v Keprose Pty Limited (1987) 11 NSWLR 404 Kizbeau Pty Ltd v WG & B Pty Ltd (1995) 184 CLR 281 Kostakis v New World Oil & Developments [1997] NSWIRComm 84 Krambousanos v Jedda Investments Pty Ltd (1996) 64 FCR 348 Lane v Industry Equity Ltd (1985) 2 NSWLR 720 Larkin and American Refrigeration and Investment Corporation Pty Limited, Re (1971) AR (NSW) 930 Little Chelsea Pty Ltd v Mulroad Pty Ltd (1987) 20 IR 132 Loupos v Basa t/as Robert R Andrews Real Estate (1995) 62 IR 397 Majik Markets Pty Limited v Brake & Service Centre Drummoyne (1991) 28 NSWLR 443, (1991) 39 IR 169 Malik v Bank of Credit and Commerce International SA (in compulsory liquidation) [1998] AC 20 Manni v Scully (1967) AR (NSW) 606 Marks v GIO Holdings Ltd (1998) 196 CLR 494 McIntosh v Dylcote Pty Ltd [1999] NSWSC 230 McPhillips v Ampol Petroleum (Victoria) Pty Ltd (1990) ATPR 51-247 Metropolitan Life Insurance Co v RJR Nabisco Inc (1989) 716 F Supp 1504 Mitchell v Interstate Pipelines Pty Limited (1998) 87 IR 324 Mitchell v Vending Machine Co of Australia Pty Limited (1977) AR (NSW) 30 Mitchforce Pty Limited v Starkey [2002] NSWIRComm 85 Moshirian v University of New South Wales [2002] FCA 179 Myer Stores Ltd t/as Grace Bros v Stowart (1994) 55 IR 21 Northside Development Pty Limited v Registrar General (1990) 170 CLR 146 Outboard World Pty Limited T/as Budget Waste Control (Sydney) v Muir (1993) 51 IR 167 Overlook v Foxtel [2002] NSWSC 17 Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (No 3) (1998) 195 CLR 1 Peter Rochester Gow v Cronulla Sutherland Leagues Club Ltd [2002] NSWIRComm 247 Player v Kacy (1971) AR (NSW) 125 Pont Data Australia Pty Limited v ASX Operations (1990) 21 FCR 385 Port Macquarie Golf Club Limited v Stead (1995) 64 IR 53 Production Spray Painting & Panel Beating Pty Ltd v Newnham (1991) 27 NSWLR 644, (1991) 37 IR 46 Project Blue Sky Inc. v Australian Broadcasting Authority (1998) 194 CLR 355 Queensland Independent Wholesalers Ltd v Coutts Townsville Pty Ltd [1989] 2 Qd R 40 Reich v Client Server Professionals of Australia Pty Limited (Administrator Appointed) 99 IR 69 Renard Constructions (ME) Pty Limited v Minister for Public Works (1992) 26 NSWLR 234 Richardson re Hildred IJ, Ex parte [1972] 2 NSWLR 423 Rolles v Donald Scott Surgicals Pty Ltd (unreported, Fisher P, Cahill V-P, Bauer J, 19 February 1998) Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 76 ALJR 436 S H Lock (Australia) Ltd v Kennedy (1988) 12 NSWLR 482 Scott v Perry 1995 (SR) NSW 375 Stanley v Fuji Xerox (NZ) Ltd (Unreported, HC Auckland, CP 479/96, 5 November 1997) Starkey v Mitchforce Pty Ltd (2000) 101 IR 177 State of New South Wales v Health & Research Employees Association (unreported, Fisher CJ, Bauer and Hill JJ, 31 March 1993) Stevenson v Barham (1977) 136 CLR 190 Thiess Contractors Pty Limited v Placer (Granny Smith) Pty Limited [2000] WASCA 102 Transport Workers Union of Australia, Re (1993) 50 IR 171 VG Haulage Services Pty Limited: Re Industrial Commission of New South Wales, Ex parte (1972) 2 NSWLR 81 Walker v Industrial Court of New South Wales (1994) 53 IR 121 Westfield Holdings Limited v Adams (2002) 114 IR 241 Williams and Calmex Products, Re (1971) AR (NSW) 264 Williams v Mathews (1978) 1 NSWLR 78 Zakrzewski v Rodgers (2000) 106 IR 1 HEARING DATES: 10/27/2000; 11/10/2000; 11/17/2000; 03/27/2001; 03/28/2001; 03/29/2001; 04/03/2001; 05/16/2001; 05/18/2001; 05/28/2001; 05/29/2001; 05/30/2001; 05/31/2001; 06/01/2001; 06/04/2001; 06/05/2001; 06/06/2002; 06/07/2002; 06/08/2001; 06/12/2001; 06/13/2001; 06/14/2001; 06/15/2001; 06/19/2001; 06/20/2001; 07/03/2001; 07/05/2001; 07/20/2001; 08/23/2001; 08/24/2001; 08/27/2001; 08/29/2001; 08/30/2001; 09/06/2001; 09/07/2001; 09/10/2001; 09/11/2001; 09/12/2001; 09/13/2001; 09/14/2001; 09/19/2001; 09/20/2001; 09/21/2001; 09/24/2001; 09/25/2001; 09/26/2001; 09/27/2001; 09/28/2001; 10/02/2001; 10/23/2001; 11/28/2001; 12/07/2001; 12/10/2001; 12/12/2012; 01/29/2002; 01/30/2002; 01/31/2002; 02/01/2002; 02/04/2002; 02/05/2002; 02/06/2002; 02/07/2002; 02/08/2002; 02/11/2002; 02/13/2002; 02/26/2002; 02/27/2002; 03/04/2002; 03/05/2002; 03/06/2002; 03/07/2002; 03/08/2002; 03/13/2002; 03/14/2002; 03/15/2002; 03/18/2002; 03/20/2002; 03/21/2002; 03/22/2002; 04/08/2002; 04/09/2002; 04/10/2002; 04/11/2002; 04/12/2002; 05/09/2002; 05/10/2002; 05/13/2002; 05/14/2002; 05/15/2002; 05/27/2002; 05/28/2002; 05/29/2002; 05/30/2002; 05/31/2002; 06/17/2002; 06/18/2002; 06/19/2002; 06/20/2002; 06/21/2002; 06/25/2002; 06/26/2002; 06/27/2002; 06/28/2002; 07/18/2002; 08/26/2002; 08/27/2002 DATE OF JUDGMENT: 12/19/2002