Australian Medic-Care Company Ltd v Hamilton Pharmaceutical Pty Limited (ACN 008 204 635) [2009] FCA 1220

Australian Medic-Care Company Ltd v Hamilton Pharmaceutical Pty Limited (ACN 008 204 635) [2009] FCA 1220

The Distribution Agreement was wholly written and lawfully terminated by Hamilton on 13 July 2006 pursuant to clause 41.1.6 with 60 days' notice. The applicant's alleged oral qualifying terms, including a 'rolling five year term', were not proven. Both parties breached the reciprocal 'best efforts' clause regarding prevention of parallel importation; however, damages were limited to nominal amounts due to AMC's own failure to notify and mitigate losses. The applicant's consequential loss and refusal to supply claims were rejected for lack of proof or failure to mitigate. AMC owns copyright in certain packaging through assignment but failed to prove infringement. Hamilton owns no right to...

Parties
Applicant/first Cross Respondent: Australian Medic-Care Company Ltd; First Respondent/cross Claimant: Hamilton Pharmaceutical Pty Ltd; Second Cross Respondent: Kenneth Kin Wah Keung
Jurisdiction
Australia
Judgment Date
30 October 2009
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for the respondent and cross-claimant in part; judgment for the applicant in part; parties to bring in Agreed Minutes of Order to give effect to reasons.
Legal Topics
Exclusive Distributorships, Contract Construction, Parallel Importation, Breach of Confidence, Trademark Ownership, Copyright Infringement, Misleading or Deceptive Conduct, Passing Off, Damages, Termination of Contract

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Parties

Australian Medic-Care Company Ltd

Applicant/first Cross Respondent

Hamilton Pharmaceutical Pty Ltd

First Respondent/cross Claimant

Kenneth Kin Wah Keung

Second Cross Respondent

Procedural Posture

Civil / Final Judgment

  1. 1 Whether the Distribution Agreement was terminated lawfully by the respondent under clause 41.1.6 or was repudiated.
  2. 2 Whether oral terms or collateral contracts existed supplementing the written Distribution Agreement.
  3. 3 Whether the parties breached the 'best efforts' clause regarding prevention of parallel importation.

Ratio Decidendi

The Distribution Agreement was wholly written and lawfully terminated by Hamilton on 13 July 2006 pursuant to clause 41.1.6 with 60 days' notice. The applicant's alleged oral qualifying terms, including a 'rolling five year term', were not proven. Both parties breached the reciprocal 'best efforts' clause regarding prevention of parallel importation; however, damages were limited to nominal amounts due to AMC's own failure to notify and mitigate losses. The applicant's consequential loss and refusal to supply claims were rejected for lack of proof or failure to mitigate. AMC owns copyright in certain packaging through assignment but failed to prove infringement. Hamilton owns no right to...

Court Disposition

Judgment for the respondent and cross-claimant in part; judgment for the applicant in part; parties to bring in Agreed Minutes of Order to give effect to reasons.

Orders

  • Parties to bring in Agreed Minutes of Order within 14 days of publication of reasons (by 13 November 2009), failing which applicant to file proposed orders.
  • Applicant and respondent to file and serve submissions on costs by 13 November 2009.