Video Ezy International Pty Ltd v Sedema Pty Ltd [2014] NSWSC 143

Video Ezy International Pty Ltd v Sedema Pty Ltd [2014] NSWSC 143

The appeal fails because the Magistrate correctly found the Katoomba agreement was released, properly interpreted the restrictive covenant to cover internet sales within the territory, properly implied and applied an obligation of good faith, correctly determined unconscionable conduct and accessorial liability, and correctly admitted lay opinion evidence; damages were reasonably awarded based on evidence, and no error of law is established.

Jurisdiction
Australia
Judgment Date
27 February 2014
Procedural Posture
Appeal From Local Court / Final Judgment
Outcome
Appeal dismissed
Legal Topics
['contract Interpretation' 'implied Terms' 'restrictive Covenants' 'good Faith in Franchising' 'unconscionable Conduct' 'accessorial Liability' 'admissibility of Opinion Evidence']
['contracts' 'franchise Law' 'consumer Protection' 'evidence'] ['contract Interpretation' 'implied Terms' 'restrictive Covenants' 'good Faith in Franchising' 'unconscionable Conduct' 'accessorial Liability' 'admissibility of Opinion Evidence']

Case Brief

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Procedural Posture

Appeal From Local Court / Final Judgment

Legal Issues

  1. 1 ['Whether the Katoomba franchise agreement was effectively released' 'Whether the franchisor breached the restrictive covenant not to compete within the exclusive territory' 'Whether the implied obligation of good faith arose and was breached' 'Whether the conduct of Video Ezy was unconscionable within Trade Practices Act 1974 (Cth) and Competition and Consumer Act 2010 (Cth)' 'Whether Blockbuster and EzyDVD were liable as accessories to unconscionable conduct' 'Admissibility of lay opinion evidence']

Ratio Decidendi

The appeal fails because the Magistrate correctly found the Katoomba agreement was released, properly interpreted the restrictive covenant to cover internet sales within the territory, properly implied and applied an obligation of good faith, correctly determined unconscionable conduct and accessorial liability, and correctly admitted lay opinion evidence; damages were reasonably awarded based on evidence, and no error of law is established.

Court Disposition

Appeal dismissed

Orders

  • ['The appeal is dismissed.' 'The decision of his Honour Magistrate Favretto dated 14 February 2013 is affirmed.' 'The amended summons filed 26 September 2013 is dismissed.' "The plaintiffs are to pay the defendants' costs as agreed or assessed."]