Australian Competition and Consumer Commission v Will Writers Guild Pty Ltd [2003] FCA 1231

Australian Competition and Consumer Commission v Will Writers Guild Pty Ltd [2003] FCA 1231

Will Power suffered loss or damage of $137,697 by reason of the respondents' contraventions because it paid $130,000 for two franchises that were essentially worthless and incurred additional expenses, while receiving nothing of real value in return. The respondents' evidence that Will Power copied the blue book or operated a profitable business was tenuous and unsupported by cogent admissible evidence, and did not justify refusing compensation or deducting alleged profits.

Jurisdiction
Australia
Judgment Date
03 November 2003
Procedural Posture
Application Pursuant to S 87(1 A) of the Trade Practices Act 1974 (cth) for Compensation for Loss and Damage / Final Judgment on Compensation and Costs
Outcome
Application granted; compensation and costs ordered against the respondents.
Legal Topics
['contraventions of Pts IVB and V of the Trade Practices Act 1974 (cth)' 'false Representations' 'franchising Code of Conduct' 'compensation for Loss and Damage' 'sale of Franchise']
['trade Practices' 'consumer Law' 'franchising'] ['contraventions of Pts IVB and V of the Trade Practices Act 1974 (cth)' 'false Representations' 'franchising Code of Conduct' 'compensation for Loss and Damage' 'sale of Franchise']

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Procedural Posture

Application Pursuant to S 87(1 A) of the Trade Practices Act 1974 (cth) for Compensation for Loss and Damage / Final Judgment on Compensation and Costs

Legal Issues

  1. 1 ["Whether Will Power suffered loss or damage by reason of the respondents' contraventions of the Trade Practices Act 1974 (Cth)." "Whether the Court should decline to make a compensation order because Will Power allegedly used the respondents' materials to operate a same or similar successful business." 'Whether any profits allegedly generated by the WilPaC business should be deducted from the loss claimed.']

Ratio Decidendi

Will Power suffered loss or damage of $137,697 by reason of the respondents' contraventions because it paid $130,000 for two franchises that were essentially worthless and incurred additional expenses, while receiving nothing of real value in return. The respondents' evidence that Will Power copied the blue book or operated a profitable business was tenuous and unsupported by cogent admissible evidence, and did not justify refusing compensation or deducting alleged profits.

Court Disposition

Application granted; compensation and costs ordered against the respondents.

Orders

  • ['The respondents pay to Will Power International Pty Ltd (ACN 089 942 361) the sum of $137,697.' "The respondents pay the applicant's costs of and incidental to this proceeding."]