ACCC institutes against shop landlord

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against an Adelaide commercial landlord, alleging unconscionable conduct toward a tenant and also alleging a breach of the mandatory Franchising Code.

The ACCC has alleged that the landlord, Suffolke Parke Pty Ltd, and its director, Gregory John Bradshaw, acted unconscionably contrary to section 51ac of the Trade Practices Act 1974.

The ACCC alleges it did this by refusing permission in October 2000 for its tenant, who also happens to be a sub–franchisee, to sublet a separate part of shop premises at Brighton that it leases from Suffolke Parke Pty Ltd when on two prior occasions it had not objected to such sub–leasing.

The ACCC alleges that the refusal was not reasonably necessary for the business interests of the landlord, but rather was in response to the sub–franchisee being involved, with other sub–franchisees, in correspondence from a solicitor to Suffolke Parke Pty Ltd and Mr Bradshaw about complaints concerning franchising aspects of the business.

The ACCC is also seeking orders that Suffolke Parke Pty Ltd and Mr Bradshaw have acted contrary to section 51ad of the Act by refusing to engage in mediation as required by the mandatory Franchising Code. The ACCC will seek injunctions, damages and costs.

A directions hearing will be held in the Federal Court, Adelaide on 27 September 2001.