News

The Ultra Tune Penalties – Implications for Franchisors

In one of the most important decisions affecting franchising in Australia, we examine how the Federal Court determined the number of contraventions and calculated the penalty of $2,604,000 imposed on Ultra Tune. MST Lawyers Principal, Philip Colman, steps through the key points in the decision handed down by Justice Bromwich.

Court of Appeal Confirms Services to be Provided under Consumer Guarantees Not Limited by Contractual Obligations

In the recent decision of Scenic Tours Pty Ltd v Moore [2018] NSWCA 238, a decision by the Court of Appeal partially found that a luxury travel company was liable for breaches of consumer guarantees under the Australian Consumer Law. This decision overrode the travel company’s contract limiting its liability to clients.

The decision also clarified when damages for disappointment and distress would be available to claimants under the Australian Consumer Law.

The PAYG Penalty: Costly Implications for Directors

The PAYG Penalty can have very costly personal implications for directors of companies that become insolvent. In a recent decision, Stellar Corporate Solutions failed to remit PAYG tax to the ATO and as a result, their director was deemed personally liable for the substantial debt that was incurred. This article highlights the importance for directors to appreciate the personal finacial implications that may result from failing to pay this particular tax.

Severe Consequences For Knowingly Assisting In Breach Of Fiduciary Duty

The duties that arise out of a fiduciary relationship, such as those owed by a trustee to a beneficiary, are some of the most stringent the law imposes. The recent case of Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd [2018] demonstrates the serious repercussions for a third party who, while not a fiduciary themselves, knowingly assists a fiduciary in their dishonest and fraudulent conduct.

The case demonstrates that the Court is willing to order such a third party to account for their profits, including potential future profits for an unrestricted time frame.