FAR HORIZONS PTY LTD V MCDONALD’S AUSTRALIA LTD  VSC 310
Supreme Court of Victoria – 18 August 2000
Far Horizons Pty Ltd (“Far Horizons”) conducts two McDonald’s restaurants at Fountain Gate Shopping Centre and in Endeavour Hills in Melbourne, under a licence entered into with McDonald’s Australia Ltd (“McDonald’s”).
McDonald’s decided to open a new store in the Fountain Gate Shopping Centre, 800 metres from Far Horizons’ store.
McDonald’s also decided to open a new store about 4.5km from Far Horizon’s store in Endeavour Hills.
Far Horizons commenced proceedings seeking damages for breach of an implied duty not to act in dishonestly, unfairly or in bad faith by granting licences for other stores which would prejudice significantly the profitability of Far Horizon’s stores.
Whether there was implied duty to act honestly, fairly and in good faith.