Midland Milk Pty Ltd & Ors v Victorian Diary Industry Authority [1987] FCA 790

Midland Milk Pty Ltd & Ors v Victorian Diary Industry Authority [1987] FCA 790

The court determined that an interlocutory mandatory injunction compelling the Authority to allow a price allowance could not be granted, as there was insufficient certainty of power for such relief under the Dairy Industry Act (s. 54(2)(d)). However, there was a serious issue to be tried that imposition of condition 6, restricting delivery and receipt of non-Authority milk at the applicant's premises, was an exercise of market power for the purpose of deterring competition and thus may contravene s. 46 Trade Practices Act. The balance of convenience favoured restraining enforcement of this condition until trial.

Parties
First Applicant: Midland Milk Pty. Limited; Second Applicant: Davids Holdings Pty. Limited; Third Applicant: Jewel Food Stores Pty. Limited; Respondent: Victorian Dairy Industry Authority
Jurisdiction
Australia
Judgment Date
24 December 1987
Procedural Posture
Application for Interlocutory Injunctive Relief / Interlocutory Hearing and Judgment
Outcome
Interlocutory injunction granted in part
Legal Topics
Misuse of Market Power, Injunctions, Section 46 Trade Practices Act, Dairy Industry Regulation
Trade Practices Competition Law Administrative Law Misuse of Market Power Injunctions Section 46 Trade Practices Act Dairy Industry Regulation

Case Brief

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Parties

Midland Milk Pty. Limited

First Applicant

Davids Holdings Pty. Limited

Second Applicant

Jewel Food Stores Pty. Limited

Third Applicant

Victorian Dairy Industry Authority

Respondent

Procedural Posture

Application for Interlocutory Injunctive Relief / Interlocutory Hearing and Judgment

Legal Issues

  1. 1 Whether refusal to grant allowance and imposition of trading conditions by the Authority amount to misuse of market power under s. 46 of the Trade Practices Act 1974;
  2. 2 Whether relief should be granted to restrain the imposition and enforcement of specific supply conditions under the Dairy Industry Act 1984 (Vic);
  3. 3 Whether the Authority has power under s. 54(2)(d) of the Dairy Industry Act to grant allowances to processors;

Ratio Decidendi

The court determined that an interlocutory mandatory injunction compelling the Authority to allow a price allowance could not be granted, as there was insufficient certainty of power for such relief under the Dairy Industry Act (s. 54(2)(d)). However, there was a serious issue to be tried that imposition of condition 6, restricting delivery and receipt of non-Authority milk at the applicant's premises, was an exercise of market power for the purpose of deterring competition and thus may contravene s. 46 Trade Practices Act. The balance of convenience favoured restraining enforcement of this condition until trial.

Court Disposition

Interlocutory injunction granted in part

Orders

  • Order that, upon the first applicant giving the usual undertaking as to damages, the respondent, until the hearing or further order of the Court, be restrained from giving effect to or enforcing compliance with the condition imposed by the Authority on supply of milk to Midland as notified on 26 November 1987, such...
  • Costs reserved.