Haviv Holdings Pty Limited v Howards Storage World Pty Ltd [2009] FCA 242

Haviv Holdings Pty Limited v Howards Storage World Pty Ltd [2009] FCA 242

HSW breached an express contractual promise of exclusivity by granting a franchise for the Rhodes store within Haviv's 5km exclusive territory; the evidence established Haviv suffered loss in the form of lost net profits causally linked to that breach; the appropriate measure of damages is lost profits calculated by Mr Halligan's method, with certain modifications; applicants failed to prove misleading or deceptive conduct regarding exclusivity or financial benefits, nor causal link or quantum for those claims; trade practices claims fail.

Jurisdiction
Australia
Judgment Date
18 March 2009
Procedural Posture
Civil / Post Trial; Adjourned for Directions on Calculation of Damages
Outcome
HSW liable to applicants in damages for breach of franchise agreement; trade practices claims dismissed; proceedings adjourned for further directions to calculate damages.
Legal Topics
['breach of Contract' 'assessment of Damages' 'exclusive Territory Provision' 'misleading and Deceptive Conduct' 'trade Practices Act S 52' 'calculation of Loss of Profits' 'causation' 'quantum of Damages' 'franchise Agreements']
['contract Law' 'trade Practices' 'franchise Law' 'damages'] ['breach of Contract' 'assessment of Damages' 'exclusive Territory Provision' 'misleading and Deceptive Conduct' 'trade Practices Act S 52' 'calculation of Loss of Profits' 'causation' 'quantum of Damages' 'franchise Agreements']

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Procedural Posture

Civil / Post Trial; Adjourned for Directions on Calculation of Damages

Legal Issues

  1. 1 ['Whether HSW breached the franchise agreement by granting another franchise within exclusive territory; if Haviv suffered loss as a result and in what amount; whether HSW, Plaza or Spence engaged in misleading or deceptive conduct under the Trade Practices Act concerning exclusivity and financial benefit provisions; causation and quantification of damages']

Ratio Decidendi

HSW breached an express contractual promise of exclusivity by granting a franchise for the Rhodes store within Haviv's 5km exclusive territory; the evidence established Haviv suffered loss in the form of lost net profits causally linked to that breach; the appropriate measure of damages is lost profits calculated by Mr Halligan's method, with certain modifications; applicants failed to prove misleading or deceptive conduct regarding exclusivity or financial benefits, nor causal link or quantum for those claims; trade practices claims fail.

Court Disposition

HSW liable to applicants in damages for breach of franchise agreement; trade practices claims dismissed; proceedings adjourned for further directions to calculate damages.

Orders

  • ['Proceedings are adjourned for further directions on a date to be allocated.' 'Exhibits may be returned.']