(c) 1st Fleet did not pursue other possible opportunities for utilising its trucking fleet.
46 The plaintiff submitted that the defendant is estopped from "resiling from its representations". However, the plaintiff needs to go further. It needs to show that it is seriously arguable that the defendant is estopped from denying that a contract was made at the meeting of 23 May 2006, or that it is estopped from denying that a contract would be entered into for a term of two years at the revised rates contained in the plaintiff's tender proposal, and otherwise on the terms of either the existing agreements or the agreement put forward in the tender process.
47 For such a claim to be tenable, the plaintiff would have to show, at a minimum, that it adopted the assumption that such a contract had been entered into, or would be entered into, and that it would be unconscionable for the defendant to depart from the assumption which it induced the plaintiff to adopt. Given my conclusion that it is not seriously arguable that a contract was entered into in the course of the meeting on 23 May 2006, it is also not seriously arguable that the defendant is estopped from departing from the assumption the plaintiff adopted on the ground that the plaintiff was induced to adopt the assumption by the defendant's representations at that meeting. Something more would be required for the claim to be seriously arguable.
48 In the circumstances of this case, for such a claim to be seriously arguable, the plaintiff would have to show, at a minimum, that the defendant knew it proposed to take such steps in reliance on the assumption that such a contract had been, or would be, entered into. Its silence in failing to correct the assumption would then, arguably, make it unconscionable for it to depart from the assumption it knew the plaintiff had adopted (Waltons Stores (Interstate) Ltd v Maher (1998) 164 CLR 387 at 406, 429; Verwayen v The Commonwealth (1990) 170 CLR 394 at 444).
49 There is no evidence that the defendant knew that the plaintiff was continuing to supply services in reliance on an assumption that the plaintiff had entered into a two-year contract with the defendant, or that the defendant would enter into such a contract with it.
50 Indeed, by signing the expression of interest document, the plaintiff was obliged to continue to provide such services until the completion of the migration to a replacement service provider, or for six months from the announcement of the replacement service provider. In other words, the continued provision of services was not an act of detrimental reliance on the alleged representations, as it was something which the plaintiff was contractually obliged to do.
51 There is no evidence about what the plaintiff has done in relation to refinancing its fleet, or as to what opportunities it has forgone in the expectation of being able to provide services to the defendant for a further two years. It is required to continue to provide services to the defendant up to the expiry of the first of the periods stated in paragraph (a) of the Expression of Interest document. Nor is there evidence that the defendant knew that whatever the plaintiff did, or abstained from doing, in these respects, was in reliance on an assumption that a new contract had been entered into, or that the defendant would enter into such a new contract for two years.
52 For these reasons I do not consider that the plaintiff has demonstrated a serious question to be tried that it is entitled to final relief based on principles of estoppel of a kind which could support an interlocutory injunction.
Misleading and Deceptive Conduct
53 The plaintiff also submitted that it was seriously arguable that the defendant engaged in misleading and deceptive conduct by making the alleged representations at the meeting of 23 May 2006. Its summons claims damages and unspecified orders under section 80 or section 87 of the Trade Practices Act 1974 (Cth) in respect of an alleged contravention of section 52 of the Trade Practices Act. It also claims relief under equivalent sections of the Fair Trading Act 1987 (NSW).
54 If the claim for misleading and deceptive conduct is made good, the plaintiff will be entitled to damages to compensate it for the loss suffered by such conduct. That could extend to any loss suffered by reason of action taken by the plaintiff, or which it abstained from taking, in reliance on the alleged representation that it would be offered a two-year contract at the tendered rates. Prima facie that would include loss suffered by its having refinanced its fleet, or which it suffered by abstaining from taking up other opportunities to utilise that fleet because it expected to have a two-year contract with the defendant.
55 However, I see no basis on which the plaintiff, through this cause of action, could compel the defendant to extend the term of the existing contracts. To do so would go beyond compensating the plaintiff for loss sustained by the alleged misrepresentations to making good the plaintiff's expectation, even though the defendant had no contractual obligation to do so.
56 For these reasons, I do not consider that the plaintiff has demonstrated a serious question to be tried that it is entitled to final relief other than damages.
Balance of Convenience
57 Had I had to consider the balance of convenience, I would have found that balance fairly even. I will address it briefly in case I am wrong in my conclusion that the plaintiff has not demonstrated a serious question to be tried sufficient to support the claim for interlocutory injunctive relief.
58 If an injunction is refused, but at a final hearing the plaintiff succeeds in establishing the contract which it asserts, then the plaintiff will be entitled to damages for the lost profit it would otherwise have earned under the contract. The calculation of lost revenue should not be difficult, as it will be known what services Linfox has carried out under its contract for which the plaintiff tendered. Having regard to the plaintiff's experience in providing the same type of services to date, there should not be great difficulty in quantifying the expenses it would have incurred in deriving that income.
59 The plaintiff's difficulty will be that it may have to dispose of part of its fleet which it cannot deploy elsewhere. It is likely that some of the sixty employees who currently service the Dairy Farmers' business will be made redundant.
60 I doubt that the loss suffered by the plaintiff as a result of its having to dispose of its specialised trucking fleet would be a recoverable head of damage for breach of contract, unless the plaintiff receives less than it would have received if it disposed of the fleet after providing services under an extended two year term. In any event, any such loss should also be quantifiable.
61 There is likely to be hardship to some of the plaintiff's employees. On the other hand, it can be expected that Linfox will be required to employ staff to provide services which the plaintiff would otherwise provide. The result of granting an interlocutory injunction would be that Linfox would not get that work. It is likely that persons who would otherwise be employed by Linfox would not be offered employment. There is evidence that Linfox has offered, or will offer, employment to 22 or 23 of the plaintiff's employees for the Dairy Farmers' work.
62 There is also hearsay evidence that Linfox has placed an order for the purchase of trailers and prime movers for the Dairy Farmers' work in New South Wales.
63 From the defendant's perspective the rates offered by Linfox are substantially cheaper than those offered by the plaintiff. On the other hand, if an interlocutory injunction were granted, but then discharged after a final hearing, the plaintiff could readily quantify those extra costs and could recover them pursuant to the plaintiff's undertaking as to damages.
64 When the position of all the affected parties, including third parties, is considered, it seems to me that the balance of convenience does not substantially point one way rather than the other. In those circumstances the weakness of the plaintiff's case that there is a contract in existence for a two-year term, or that the defendant is estopped from denying such a contract, points to the refusal of the interlocutory relief.
Scope of Any Relief
65 It is unnecessary to consider the appropriate scope of any interlocutory relief. I would only say this. Had I been minded to grant such relief, it would have been on the basis that the Distribution Deed requires the defendant to provide to the plaintiff all of the carriage of Dairy Farmers' products authorised to be collected from the Distribution Centres and transported to Depots (as defined). On the other hand, the Master Transport Agreement provides for exclusivity only in relation to the route specified in Schedule 5 to that agreement and not to other Services which the parties might agree in writing, from time to time, should be provided, unless the parties also agree that such Services should be included in Schedule 5. This would have affected the scope of the interlocutory relief, had the plaintiff otherwise been entitled to it. However, on the view I have taken, it is not necessary to pursue this question further.
66 For these reasons, I order that except to the extent that orders have been made to date pursuant to the plaintiff's notice of motion filed on 21 August 2006, that notice of motion be dismissed with costs.
67 The exhibits may be returned after 28 days.
68 I stand over the proceedings to the Registrar's list at 9.30am on Friday, 8 September 2006.