BB Australia Pty Ltd v Danset Pty Ltd [2018] NSWCA 101

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: BB Australia Pty Ltd v Danset Pty Ltd [2018] NSWCA 101 Hearing dates: 1 May 2018 Decision date: 16 May 2018 Before: Meagher JA at [1]; Barrett AJA at [2]; Simpson AJA at [71] Decision: 1 Appeal dismissed. 2 Cross appeal dismissed. 3 That BB Australia Pty Ltd pay the costs of all other parties to the proceedings in this Court. Catchwords: CONTRACT – particular parties – franchisee and franchisor - where franchise agreement breached by denying franchisor the opportunity to exercise option to purchase business assets – where assets sold to a third party without franchisor knowledge – whether franchisor suffered loss – where resultant loss equal to the difference between the price paid by the third party and the price to be paid under exercise of option – no such difference proved.

EQUITY – equitable remedies – account of profits – equitable compensation - where deceit and fraud by the franchisee – where third party induced breach - whether assets held on trust for the franchisor – whether otherwise the franchisor had an equitable interest in the business assets – no trust established – no fiduciary duty shown – no basis for award of account of profits or equitable compensation.

PROCEDURE – where certain claims reserved by trial judge for future consideration – whether Court of Appeal should determine those claims. Legislation Cited: A New Tax System (Goods and Services Tax) Act 1999 (Cth) Supreme Court Act 1970 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc (1981) 148 CLR 170; [1981] HCA 39 Attorney General v Blake [2001] 1 AC 268; [2000] UKHL 45 BB Australia Pty Ltd v Bytan Pty Ltd [2012] VSC 171 BB Australia Pty Ltd v Constanti [2017] VSC 114 Black v S Freedman & Co (1910) 12 CLR 105; [1910] HCA 58 Browning v Brachers [2005] EWCA Civ 753; [2005] PNLR 44 Bunny Industries Ltd v FSW Enterprises Pty Ltd [1982] Qd R 712 Chan v Cresdon Pty Ltd (1989) 168 CLR 242; [1989] HCA 63 Chang v Registrar of Titles (1976) 137 CLR 177; [1976] HCA 1 Commissioner of Taxes (Q) v Camphin (1937) 57 CLR 127; [1937] HCA 30 Duncuft v Albrecht (1841) 12 Sim 189; 59 ER 1104 Englewood Properties Ltd v Patel [2005] 1 WLR 1961; [2005] EWHC 188 (Ch) Fink v Fink (1946) 74 CLR 127; [1943] HCA 54 Fistar v Riverwood Legion and Community Club Ltd (2016) 91 NSWLR 732; [2016] NSWCA 81 General Tire & Rubber Co Ltd v Firestone Tyre & Rubber Co Ltd (No 2) [1975] 1 WLR 819 Goldsbrough Mort & Co Ltd v Quinn (1910) 10 CLR 674; [1910] HCA 20 House v The King (1936) 55 CLR 499; [1936] HCA 40 Howe v Teefy (1927) 27 SR (NSW) 301 Kern Corporation Ltd v Walter Reid Trading Pty Ltd (1987) 163 CLR 164; [1987] HCA 20 KLDE Pty Ltd v Commissioner of Stamp Duties (Qld) (1984) 155 CLR 288; 1984] HCA 63 Laybutt v Amoco Australia Pty Ltd (1974) 132 CLR 57; [1974] HCA 49 Legione v Hateley (1983) 152 CLR 406; [1983] HCA 11 Libertarian Investments Ltd v Hall [2013] HKCFA 93; (2013) 16 HKCFAR 681 Lysaght v Edwards (1876) 2 Ch D 449 Mercier Rouse Street Pty Ltd v Burness [2015] VSCA 8 Morris-Garner v One Step (Support) Ltd [2018] UKSC 20; [2018] 2 WLR 1353 Re Spectrum Plus Ltd [2005] 2 AC 680; [2005] UKHL 41 Shaw v Foster (1872) LR 5 HL 321 Stern v McArthur (1988) 165 CLR 489; [1988] HCA 51 Tanwar Enterprises Pty Ltd v Cauchi (2003) 217 CLR 315; [2003] HCA 57 Warman International Ltd v Dwyer (1995) 182 CLR 544; [1995] HCA 18 Willmott Growers Group Inc v Willmott Forests Ltd (2013) 251 CLR 592; [2013] HCA 51 Texts Cited: Ashley Black, "Modern indicia of fiduciary relationships in a commercial setting and the interaction of equity and contract", 15 November 2017, www.supremecourt.justice.nsw.gov.au/Documents/Publications/.../2017_Black_J.pdf Category: Principal judgment Parties: BB Australia Pty Ltd (Appellant) Danset Pty Ltd (First Respondent) Jorge Miraldo (Second Respondent) Maria Miraldo (Third Respondent) Tresblue Pty Ltd (Fourth Respondent) John Price (Fifth Respondent) Representation: Counsel: K Rees SC / PD Herzfeld (Appellant) IR Pike SC / JS Burnett (First, Second, Third Respondents) M Cashion SC / JA Darvall (Fourth, Fifth Respondents)