Julstar Pty Ltd v Hart Trading Pty Ltd [2011] FCA 657

Julstar Pty Ltd v Hart Trading Pty Ltd [2011] FCA 657

The Court declined to order some proposed discovery categories that were unnecessary or insufficiently connected to properly pleaded issues, including correspondence about instructions for franchise templates and the extensive subcategories in paragraph 4. The Court required discovery within Category 7 supplemented by general discovery on damages, required production of all client agreements between FRG and relevant clients in the Agency territory as at 6 November 2006 and 9 December 2006, and held that HT and Hart must give discovery rather than being excused on duplication grounds.

Jurisdiction
Australia
Judgment Date
09 June 2011
Procedural Posture
Practice and Procedure; Interlocutory Discovery Dispute / Directions Hearing Concerning Categories of Documents to Be Discovered
Outcome
Parties directed to confer and submit a draft discovery order reflecting the reasons; costs reserved.
Legal Topics
['discovery by Categories' 'misleading or Deceptive Conduct' 'representations as to Future Matters' 'franchise Agreements' 'damages and Causation' 'mitigation and Reduction of Damages']
['practice and Procedure' 'discovery' 'trade Practices' 'franchising'] ['discovery by Categories' 'misleading or Deceptive Conduct' 'representations as to Future Matters' 'franchise Agreements' 'damages and Causation' 'mitigation and Reduction of Damages']

Case Brief

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Procedural Posture

Practice and Procedure; Interlocutory Discovery Dispute / Directions Hearing Concerning Categories of Documents to Be Discovered

Legal Issues

  1. 1 ['Whether correspondence between FRG and franchisees about information to be provided in franchise templates should be a separate category for discovery.' "Whether the proposed categories concerning the applicants' financial and business performance should be ordered or confined to Category 7 and general discovery on damages." 'Whether FRG should discover all client agreements in the relevant territory as at 6 November 2006 and 9 December 2006 or only agreements relating to Schedule D clients.' 'Whether the first and second respondents should have discovery obligations notwithstanding possible duplication with discovery by the third and fourth respondents.']

Ratio Decidendi

The Court declined to order some proposed discovery categories that were unnecessary or insufficiently connected to properly pleaded issues, including correspondence about instructions for franchise templates and the extensive subcategories in paragraph 4. The Court required discovery within Category 7 supplemented by general discovery on damages, required production of all client agreements between FRG and relevant clients in the Agency territory as at 6 November 2006 and 9 December 2006, and held that HT and Hart must give discovery rather than being excused on duplication grounds.

Court Disposition

Parties directed to confer and submit a draft discovery order reflecting the reasons; costs reserved.

Orders

  • ['The parties confer with a view to formulating a draft order for discovery of documents having regard to the reasons for judgment arising out of the directions hearing on 7 June 2011, and submit such draft to the Associate to Justice Greenwood within seven days for the consideration of the Court.' 'Costs are...