Apple Computer Australia Pty Ltd v George Mekrizis and Ors [2003] NSWSC 126

Reported Decision : (2003) 44 ACSR 518

New South Wales Supreme Court

CITATION : Apple Computer Australia Pty Ltd v George Mekrizis and Ors [2003] NSWSC 126 revised - 11/03/2003 24, 26, 27 and 28 June 2002 1, 2, 3, 4, 5 and 9 July 2002 HEARING DATE(S) : 26 and 30 August 2002 20 September 2002 17, 22 and 25 October 2002 15, 22, 25, 26, 27 and 29 November 2002 JUDGMENT DATE : 11 March 2003

JURISDICTION: Equity Division Commercial List JUDGMENT OF : Bergin J DECISION : See par [410].

CATCHWORDS : [GUARANTEE] - Whether the Guarantee was unjust within the meaning of that term in the Contracts Review Act 1980 (NSW) - Substantive and procedural injustice - Whether the Guarantors are entitled to a reduction in amount guaranteed by reason of: (a) receipts from other guarantors - (b) alleged prejudicial conduct by creditor - and (c) by reason of provisions of A New Tax System (Goods and Services Tax) Act 1999 (Cth) - [FRANCHISE] - Whether agreements were franchise agreements - Definition of franchise agreement under Franchising Code of Conduct - Duty of disclosure - Consideration of section 51AC of the Trade Practices Act 1974 (Cth) - [MISLEADING OR DECEPTIVE CONDUCT] - Whether the plaintiff made certain representations or whether representations should be implied - Whether representations were misleading or deceptive - Whether reliance was placed on representations to enter into Merger A New Tax System (Goods and Services Tax) Act 1999 (Cth) Contracts Review Act 1980 (NSW) LEGISLATION CITED : Conveyancing Act 1919 (NSW) Fair Trading Act 1987 (NSW) Trade Practices Act 1974 (Cth) Agro Holdings Ltd v Flexi-Coil (Australia) Pty Ltd [1999] FCA 1658, unreported, Nicholson J, 26/11/1999 Ankar Proprietary Limited v National Westminster Finance (Australia) Limited (1987) 162 CLR 549 Apple Computer Australia Pty Ltd v George Mekrizis and Ors [2002] NSWSC 982, unreported, Bergin J, 22/10/2002 Australian Competition and Consumer Commission v Simply No-Knead (Franchising) Pty Ltd (2000) 104 FCR 253 Behan v Obelon Pty Ltd [1984] 2 NSWLR 637 Black v The Ottoman Bank (1862) 15 Moo PCC 472; 15 ER 573 BP Refinery (Westernport) Pty Limited v Shire of Hastings (1977) 180 CLR 266 Codelfa Construction Proprietary Limited v State Rail Authority of New South Wales (1982) 149 CLR 337 Commercial Bank of Australia Limited v Amadio & Anor (1983) 151 CLR 447 CASES CITED : Comptroller of Stamps (Victoria) v Howard-Smith (1936) 54 CLR 614 Dobbs v National Bank of Australasia Limited (1935) 53 CLR 643 Federal Wharf Company Limited v The Deputy Federal Commissioner of Taxation (1930) 44 CLR 24 Fitzwood v Unique Goal Pty Ltd (in liq) (2001) 188 ALR 566 Holder & Anor v Commissioners of Inland Revenue [1932] AC 624 Hurley v McDonald's Australia Ltd (2000) ATPR 41-741 Je Maintiendrai Pty Ltd v Australia and New Zealand Banking Group (1985) 38 SASR 70 Riches v Westminster Bank Limited [1947] AC 390 Subway Systems Australia Pty Ltd v Thorpe [2000] QSC 099, unreported, Muir J, 28/4/2000 West v AGC (Advances) Ltd & Ors (1986) 5 NSWLR 610 William Brandt's Sons & Co v Dunlop Rubber Company, Limited [1905] AC 454 Apple Computer Australia Pty Ltd (Plaintiff/First Cross-Defendant) Donald Hartono (Sixth Defendant/First Cross-Claimant) Tjipto Hartono (Seventh Defendant/Second Cross-Claimant) PARTIES : Wing Nin Liu (Thirteenth Defendant/First Cross-Claimant) Aircent Pty Ltd (First Cross-Claimant) Kevin McElduff (Second Cross-Defendant) James Likidis (Third Cross-Defendant) FILE NUMBER(S) : SC 50054/01 Mr TEF Hughes QC leading Mr CRC Newlinds on 20 September 2002 and 17 October 2002; Mr CRC Newlinds on all other dates (Plaintiff/First, Second and Third Cross-Defendants) COUNSEL : Mr P Hayes QC, Mr J Hyde and Mr A Paterson on 24 June 2002, Mr RG Forster SC on 26 and 30 August 2002, Dr C Birch SC on 9 July and 20 September 2002 and Mr A Davis on 22, 25, 26, 27 and 29 November 2002 (Seventh Defendant/Second Cross-Claimant) Mr P Hayes QC leading Messrs J Hyde and A Paterson (Thirteenth Defendant/First Cross-Claimants) Clayton Utz (Plaintiff/Cross-Defendant) SOLICITORS : John A Bush Solicitor (Sixth Defendant and Seventh Defendant/Second Cross-Claimant) Wright Pavuk Lawyers (Thirteenth Defendant/First Cross-Claimant)