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- Industrial
law applies to BOQ franchises
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Bank of
Queensland last week failed in a key skirmish with the operators of
a failed bank agency, and thus the bank will have to defend a claim
for damages brought under the Industrial Relations Act of New South
Wales.
The Supreme Court of New South Wales rejected an
attempt by the bank to strike out the claim.
The plaintiffs
in the case – Traderight Pty and the firm’s principals, Bronywn
Smith and Geoffrey Versace – are claiming damages from the
bank.
They allege a number of misrepresentations by BOQ as to
the profitability of the proposed agency business in Sydney. The
plaintiffs claimed that the misrepresentations had induced them to
enter into the agency agreement and collateral agreements and that
the various agreements had now become harsh and unfair.
The
plaintiffs are seeking orders through the Industrial Relations
Commission declaring the agency agreement and the related guarantees
and securities void, or compensation for losses.
A number of
other annoyed operators of unsuccessful BOQ branch franchises are
likely to persist with similar claims given the precedent in this
case. ~
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