Mr Rental Australia Pty Ltd v IRD Services Pty Ltd [2016] NSWSC 700

Supreme Court New South Wales

Medium Neutral Citation: Mr Rental Australia Pty Ltd v IRD Services Pty Ltd [2016] NSWSC 700 Hearing dates: 14-18, 21, 23 March 2016 Decision date: 02 June 2016 Jurisdiction: Equity Before: Meagher JA Decision: (1) Direct that the parties attempt to agree on short minutes of order giving effect to these reasons, those orders to be delivered to my Associate by 5pm on 8 June 2016. If no agreement can be reached, the parties are to lodge with my Associate before 5pm on 15 June 2016, the orders for which they contend, and written submissions (not exceeding three pages) in support of them. Any issue as to the final form of orders will then be determined on the papers. Catchwords: CONTRACT – franchise agreement – where option to purchase business assets of franchisee if agreement "terminated for any reason" – whether option only available where termination occurs pursuant to express entitlement – whether option void for uncertainty – whether franchisor entitled to specific performance of purchase agreements arising from exercise of option

CONTRACT – franchise agreement – where franchisees purported to terminate agreements – whether franchisor engaged in repudiatory conduct entitling franchisees to terminate – whether breaches of essential terms by franchisor – whether franchisor engaged in unconscionable conduct Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth), s 93AA Competition and Consumer Act 2010 (Cth), Sch 2, Australian Consumer Law, ss 21, 237 National Consumer Credit Protection Act 2009 (Cth), ss 5(1), 6, 29, 35 Cases Cited: Australian Broadcasting Commission v Australasian Performing Right Association Ltd [1973] HCA 36; 129 CLR 99 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Byrne v Australian Airlines Ltd [1995] HCA 24; 185 CLR 410 Concut Pty Ltd v Worrell [2000] HCA 64; 75 ALJR 312 Co-operative Insurance Society Ltd v Argyle Stores (Holdings) Ltd [1998] AC 1 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184; (2013) 29 BCL 329 Downer EDI Ltd v Gillies [2012] NSWCA 333; 92 ACSR 373 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; 251 CLR 640 Federal Commissioner of Taxation v Murry [1998] HCA 42; 193 CLR 605 Kennedy v Vercoe [1960] HCA 64; 105 CLR 521 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61; 233 CLR 115 Lloyd v Lloyd (1837) 2 My & Cr 192; 40 ER 613 Mainteck Services Pty Ltd v Stein Heurtey SA [2014] NSWCA 184; 89 NSWLR 633 Mehmet v Benson [1965] HCA 18; 113 CLR 295 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; 89 ALJR 990 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451 Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [1998] HCA 30; 195 CLR 1 Perri v Coolangatta Investments Pty Ltd [1982] HCA 29; 149 CLR 537 Southern Cross Assurance Co Ltd v Australian Provincial Assurance Association Ltd [1935] HCA 56; 53 CLR 618 Sunbird Plaza Pty Ltd v Maloney [1988] HCA 11; 166 CLR 245 Tonto Home Loans Australian Pty Ltd v Tavares [2011] NSWCA 389; 15 BPR 29,699 Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 38 SR (NSW) 632 Wilkie v Gordian Runoff Ltd [2005] HCA 17; 221 CLR 522 Texts Cited: J D Heydon, M J Leeming & P G Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed 2015, LexisNexis Butterworths) Category: Principal judgment Parties: Mr Rental Australia Pty Ltd (Plaintiff) IRD Services Pty Ltd (First Defendant) J&D Business Solutions Pty Ltd (Second Defendant) Alwitem Pty Ltd (Third Defendant) Glenn David Travers and Sandra Travers (Fourth Defendant) Andsmit Pty Ltd (Fifth Defendant) Ian Dobbie (Seventh Defendant) Jeffrey Wood (Eighth Defendant) Debra Siozos (Ninth Defendant) Ross Grimm (Tenth Defendant) Joy Grimm (Eleventh Defendant) Peter Raymond Thomas (Twelfth Defendant) Sharon Leanne Thomas (Thirteenth Defendant) Representation: Counsel: JAC Potts with CE Bannan (Plaintiff/Cross Defendant) RHM Attiwill QC with DB Bongiorno (Defendants/Cross Claimants)