Lee v Passiontree Velvet Pty Ltd & Ors [2019] NSWDC 710

District Court New South Wales

Medium Neutral Citation: Lee v Passiontree Velvet Pty Ltd & Ors [2019] NSWDC 710 Hearing dates: 11 December 2019 Date of orders: 13 December 2019 Decision date: 13 December 2019 Jurisdiction: Civil Before: Abadee DCJ Decision: See paragraph 76 - 78 Catchwords: CONTRACT – franchise agreement terminated by consent – claim for repayment of franchise fee paid by franchisee before franchise operational – subsequent arrangements entered with franchisor for the repayment of the franchise fee in instalments – whether claim against franchisor is under franchise agreement or subsequent arrangements

TRADE PRACTICES – misleading or deceptive conduct – promise that franchise fee will be repayable in instalments – whether promise amounted to an implied representation that franchisor would have the capacity in the future to repay the fee – whether promise to repay is a future representation capable of enlivening the facultative deeming provision in s 4 of the Australian Consumer Law

PRACTICE & PROCEDURE – whether judgment should be given against absent defendant without trial – ambit of grant of leave to supply supplementary submissions after judgment is reserved Legislation Cited: Australian Consumer Law, ss 4, 18 Competition and Consumer Act 2010 (Cth) Uniform Civil Procedure Rules 2005 (NSW), r 29.7(3) Corporations Act 2001 (Cth), s 440D Australian Securities & Investments Act 2001(Cth) Cases Cited: Carr v Finance Corporation Australia Ltd (No.1) (1981) 147 CLR 246 Commissioner of Taxation v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520 Concrete Constructions Group v Litevale & Ors [2002] NSWSC 670 Futuretronics International Pty Ltd v Gadzhis [1992] 2 VR 217 Kenny & Good v MGICA (1992) (1999) 199 CLR 413 Marks v GIO Australia Holdings (1998) 196 CLR 494 McGrath v Australian Naturalcare Products Pty Ltd (2008) 165 FCR 230 MG Corrosion Consultants Pty Ltd v Gilmour (2012) 202 FCR 354 Newton v State Government Insurance Office (Qld) [1986] 1 Qd R 431 Penrith Whitewater Stadium v Lesvos Pty Ltd [2007] NSWCA 176 RCR Energy Pty Ltd v WTE Co-Generation Pty Ltd [2017] VSCA 50 Re Ku-ring-gai Co-Operative Building Society (No.12) Ltd (1978) 36 FLR 134 Secure Parking Pty Ltd v Woollhara Municipal Council [2016] NSWCA 15 Texts Cited: Cheshire and Fifoot Law of Contract (11th Australian Edition) Category: Principal judgment Parties: Mr Lee (Plaintiff) Passiontree Velvet Pty Ltd (First Defendant) Mr Kim (Second Defendant) Representation: Counsel: Mr S Doupe (Plaintiff) Mr Kim, in person