Australian Institute of Fitness Pty Limited v Australian Institute of Fitness (Vic/Tas) Pty Limited (No 3) [2015] NSWSC 1639

Supreme Court New South Wales

Medium Neutral Citation: Australian Institute of Fitness Pty Limited v Australian Institute of Fitness (Vic/Tas) Pty Limited (No 3) [2015] NSWSC 1639 Hearing dates: 23, 24, 25, 26, 27, 30, 31 March 2015, 1 April 2015 (evidence), 17 April 2015 (directions), 1 May 2015 (motion), 16 July 2015 (motion), 24 July 2015 (interlocutory judgment) 3, 4, 5, 6, 7, 18,19, 20 August 2015 (evidence and oral submissions) Date of orders: 06 November 2015 Decision date: 06 November 2015 Jurisdiction: Equity - Expedition List Before: Sackar J Decision: See [705]-[726] Catchwords: CORPORATIONS – members' remedies – oppression – oppressive to, unfairly prejudicial to, or unfairly discriminatory against – contrary to the interests of the members as a whole – nature of conduct – reasonableness of conduct

CORPORATIONS – remedies – winding-up – where business still operational – where relationship between members has broken down

CORPORATIONS – breach of directors' duties – conduct in running competing business – use of information – whether businesses competitive in the same market – provision of similar services – distinguishing features

CORPORATIONS – accessorial liability – whether parties induced or procured breaches of fiduciary obligations – whether parties knowingly concerned in breaches – accessorial liability of corporate entities – dishonesty – requisite level of knowledge

INTELLECTUAL PROPERTY – trade marks – whether trade mark likely to mislead or cause confusion – common or generic words – "institute" – recognition by consumers Legislation Cited: Corporations Act 2001 (Cth) Trade Marks Act 1995 (Cth) Electronic Transactions Act 2000 (NSW) Electronic Transactions (Victoria) Act 2000 (Vic) Cases Cited: ACCC v Malaysian Airline System Berhad (2010) 271 ALR 91 Ananda Marga Pracaraka Samgha Ltd v Tomar (No 6) (2013) 300 ALR 492 Australian Co-operative Foods Ltd v Norco Co-operative Ltd [1999] 46 NSWLR 267 Boardman v Phipps [1967] 2 AC 46 Bonham-Carter v Hyde Park Hotel (1948) 64 TLR 177 Breen v Williams (1996) 186 CLR 71 Brirek Industries Pty Ltd v Mckenzie Group Consulting Pty Ltd (Vic) (No 2) [2015] VSCA 185 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304 Chan v Zacharia (1984) 154 CLR 178 Chase Corporation (Australia) Pty Ltd v North Sydney Brick and Tile Co Ltd (1994) 35 NSWLR 1 Colorado Group Ltd v Strandbags Group Pty Ltd (2007) 164 FCR 506 Commissioner of Taxation v Murry (1998) 193 CLR 605 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 Cook v Deeks [1916] 1 AC 554 Donaldson v Natural Springs Australia Limited [2015] FCA 498 E & J Gallo Winery v Lion Nathan Australia Pty Ltd (2010) 241 CLR 144 Ebrahimi v Westbourne Galleries Ltd [1973] AC 360 Ezystay Systems Pty Ltd v Link 2 Pty Ltd [2015] NSWSC 1105 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Fexuto Pty Ltd v Bosnjak Holding Ltd (2001) 37 ACSR 672 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688 Fink v Fink (1946) 74 CLR 127 First Conferences Services Ltd v Bracchi [2009] EWHC 2176 (Ch) Goozee v Graphic World Group Holdings Pty Ltd (2002) 42 ACSR 534 Green v Bestobell Industries [1982] WAR 1 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609 Hillam v Ample Source International Ltd (No 2) (2012) 202 FCR 336 HNA Irish Nominee Ltd v Kinghorn (No 2) (2012) 290 ALR 372 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Howard v Federal Commissioner of Taxation (2014) 253 CLR 83 Hunter v Organic & Natural Enterprise Group Pty Ltd (2012) 92 ACSR 183 Ireland v Retallack [2011] NSWSC 846 Joint v Stephens [2008] VSCA 210 Markwell Bros Pty Ltd v CPN Diesels (Qld) Pty Ltd [1983] 2 Qd R 508 McCausland v Surfing Hardware International Holdings Pty Ltd [2013] NSWSC 902 McWilliam v L J R McWilliam Estates Pty Ltd (1990) 20 NSWLR 703 Michael Kellaway International v Shark Bay Airport (unreported, 13 November 1997) Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 Murray Goulburn Co-operative Co Ltd v NSW Dairy Corporation (1990) 24 FCR 370 Nassar v Innovative Precasters Group Pty Ltd (2009) 71 ACSR 343 Natural Extracts Pty Ltd v Stotter (1997) 24 ACSR 110 Nilon v Bezzina [1988] 2 Qd R 420 O'Neill v Phillips [1999] 1 WLR 1092 Power v Ekstein (2010) 77 ACSR 301 Queensland Mines Ltd v Hudson (1978) 18 ALR 1 Ratcliffe v Evans [1892] 2 QB 524 Re Amazon Pest Control Pty Limited [2012] NSWSC 1568 Re Bright Pine Mills Pty Ltd [1969] VR 1002 Re Broadcasting Station 2GB Pty Ltd [1964-5] NSWR 1648 Re Cheal Industries [2012] NSWSC 261 Re CMI Ltd [2011] QSC 346 Re D G Brims and Sons Pty Ltd (1995) 16 ACSR 559 Re Ledir Enterprises Pty Ltd (2013) 96 ACSR 1 Re London School of Electronics Ltd [1986] Ch 211 Re M Dalley & Co Pty Ltd v Sims (1968) 1 ACLR 489 Re New South Wales Bar Association (2014) 315 ALR 146 Re Tivoli Freeholds Ltd [1972] VR 445 Re Waterfront Investments Group Pty Ltd (in liq) [2015] NSWSC 18 Registrar of Trade Marks v Woolworths Ltd (1999) 93 FCR 365 Sellars v Adelaide Petroleum NL (1994) 179 CLR 332 SGH Ltd v Commissioner of Taxation (2002) 210 CLR 51 Southern Cross Refrigerating Company v Toowoomba Foundry Pty Ltd (1954) 91 CLR 592 Southern Real Estate Pty Ltd v Dellow (2003) 87 SASR 1 Sovereign Motor Inns Pty Ltd v Bevillesta (No 2) [2002] NSWSC 7 Square Mile Partnership Ltd v Fitzmaurice McCall Limited [2007] 2 BCL 23 Streeter v Western Areas Exploration Pty Ltd (No 2) (2011) 278 ALR 291 Thomas Jewellers (Australia) Pty Ltd v Royal Arcade Pty Ltd (1994) 14 ACSR 352 Thomas v HW Thomas Ltd [1984] 1 NZLR 686 Timber Engineering Co Pty Ltd v Anderson [1980] 2 NSWLR 488 Toddler Kindy Gymbaroo Pty Ltd v Gymboree Pty Ltd (2000) 100 FCR 166 Tomanovic v Argyle HQ Pty Ltd [2010] NSWSC 152 Tomanovic v Global Mortgage Equity Corporation Pty Ltd (No 2) [2011] NSWCA 256 Trojan Equity Ltd v CMI Ltd (2011) 87 ACSR 144 Turnbull v National Roads and Motorists' Association Ltd (2004) 50 ACSR 44 Warman International Ltd v Dwyer (1995) 182 CLR 544 Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459 Texts Cited: P Finn (ed) Equity and Commercial Relationships (1987, the Law Book Co Limited) JD Heydon, JM Leeming and PG Turner, Equity, Doctrines and Remedies (5th ed, 2014, LexisNexis Butterworths) Category: Principal judgment Parties: 2014/85141 (Licence Fee Proceedings)