Rafferty v Time 2000 West Pty Limited (No 4) [2010] FCA 725

Rafferty v Time 2000 West Pty Limited (No 4) [2010] FCA 725

Time 2000 Systems (Australia) Pty Ltd, Embleton, and Mr Donovan (as accessory) were liable for misleading or deceptive conduct by materially false representations that induced the applicants to enter into agreements. Time 2000 Systems (Australia) Pty Ltd and Embleton also breached s 51AD by failing to comply with the Franchising Code, as the agreements constituted franchise agreements granting the right to carry on the business under a system or marketing plan substantially controlled by the franchisor. Madgwicks was not liable for misleading conduct or as an accessory, as there was no reasonable expectation of disclosure to the applicants and insufficient knowledge of the application of...

Parties
Applicant: Patrick Campbell Rafferty; Applicant: Santora Holdings Pty Limited ACN 128 467 550; Applicant: Karaville Holdings Pty Limited ACN 009 439 178; First Respondent: Time 2000 West Pty Limited ACN 127 893 270; Second Respondent/second Cross Claimant: Time 2000 Systems (Australia) Pty Limited ACN 127 853 614; Third Respondent/third Cross Claimant: Time 2000 Operations (Australia) Pty Limited ACN 128 700 541; Fourth Respondent/fourth Cross Claimant: Embleton Limited (A company incorporated in Hong Kong); Fifth Respondent/first Cross Claimant: Stephen Gerard Donovan; Sixth Respondent/cross Respondent: Madgwicks
Jurisdiction
Australia
Judgment Date
13 July 2010
Procedural Posture
Civil / Reserved Judgment; Reasons for Judgment and Orders Delivered
Outcome
Judgment for the applicants against Time 2000 Systems (Australia) Pty Ltd, Embleton Limited, and Stephen Gerard Donovan for breaches of Trade Practices Act 1974 (Cth) s 52 and s 51AD. Claims against Madgwicks dismissed. Cross-claims against Madgwicks and against Mr Rafferty dismissed. Orders on relief to follow...
Legal Topics
Misleading or Deceptive Conduct, Industry Codes Compliance, Franchise Agreements, Duty of Care in Retainer, Legal Professional Responsibility
Trade Practices Law Contract Law Franchising Law Fair Trading Misleading or Deceptive Conduct Industry Codes Compliance Franchise Agreements Duty of Care in Retainer +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 53 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Patrick Campbell Rafferty

Applicant

Santora Holdings Pty Limited ACN 128 467 550

Applicant

Karaville Holdings Pty Limited ACN 009 439 178

Applicant

Time 2000 West Pty Limited ACN 127 893 270

First Respondent

Time 2000 Systems (Australia) Pty Limited ACN 127 853 614

Second Respondent/second Cross Claimant

Time 2000 Operations (Australia) Pty Limited ACN 128 700 541

Third Respondent/third Cross Claimant

Embleton Limited (A company incorporated in Hong Kong)

Fourth Respondent/fourth Cross Claimant

Stephen Gerard Donovan

Fifth Respondent/first Cross Claimant

Madgwicks

Sixth Respondent/cross Respondent

Procedural Posture

Civil / Reserved Judgment; Reasons for Judgment and Orders Delivered

Legal Issues

  1. 1 Whether the Donovan respondents breached s 52 Trade Practices Act 1974 (Cth) by making false representations to the applicants;
  2. 2 Whether the Donovan respondents breached s 51AD Trade Practices Act 1974 (Cth) by failing to comply with the Franchising Code of Conduct;
  3. 3 Whether Madgwicks, as solicitors for the Donovan respondents, engaged in misleading or deceptive conduct under s 9 Fair Trading Act 1999 (Vic) by not advising the applicants as to the application of the Franchising Code;

Ratio Decidendi

Time 2000 Systems (Australia) Pty Ltd, Embleton, and Mr Donovan (as accessory) were liable for misleading or deceptive conduct by materially false representations that induced the applicants to enter into agreements. Time 2000 Systems (Australia) Pty Ltd and Embleton also breached s 51AD by failing to comply with the Franchising Code, as the agreements constituted franchise agreements granting the right to carry on the business under a system or marketing plan substantially controlled by the franchisor. Madgwicks was not liable for misleading conduct or as an accessory, as there was no reasonable expectation of disclosure to the applicants and insufficient knowledge of the application of...

Court Disposition

Judgment for the applicants against Time 2000 Systems (Australia) Pty Ltd, Embleton Limited, and Stephen Gerard Donovan for breaches of Trade Practices Act 1974 (Cth) s 52 and s 51AD. Claims against Madgwicks dismissed. Cross-claims against Madgwicks and against Mr Rafferty dismissed. Orders on relief to follow...

Orders

  • Each party is at liberty to make submissions on the final orders to be made in light of these reasons; settlement and entry of orders to be dealt with in accordance with the Federal Court Rules.