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Special Leave Granted in Ketchell, but …

by Norton Rose
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The High Court of Australia has granted special leave to the franchisor in the case of Ketchell v Master of Education Services to appeal the Full Federal Court decision which has caused such consternation in the franchise sector. However the grant is subject to certain conditions which make the appeal problematic from the franchisor’s perspective. As a consequence the appeal may not in fact proceed without industry funding.

Deacons partner Stephen Giles prepared an affidavit in support of the leave application noting the importance of the case to the sector. It appears that this affidavit has been instrumental in the success of the appeal. However, perhaps understandably, the High Court appears to have determined that it would be unfair to prejudice the franchisee financially in all the circumstances.

The ACCC was allocated funding to finance test cases in franchising when the New Deal Fair Deal reforms were introduced in 1998. This would seem a perfect application for some of these funds. It is also likely that the Franchise Council of Australia will lend its support, as it is critical that the appeal proceed.

For more information contact Stephen Giles. 03.03.2008
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