Ecopro Cleaning Services Limited v Ecopro Limited

Case [2018] NZHC 2527


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2018-404-1869

[2018] NZHC 2527

BETWEEN ECOPRO CLEANING SERVICES LIMITED
Applicant

AND

ECOPRO LIMITED

First Respondent

AND

MATTHEW JOHN ROURKE

Second Respondent

Hearing: 26 September 2018

Appearances:

J M Skinner and E W Davies for the Applicant No appearance for the Respondents

Judgment:

26 September 2018


JUDGMENT OF PALMER J


This judgment was delivered by me on 26 September 2018 at 3:00 p.m. pursuant to r 11.5 of the High Court Rules 1985.

Registrar/Deputy Registrar

……………………………………

Solicitors/Party

Skinners Law, Auckland Second respondent in person

ECOPRO CLEANING SERVICES LTD v ECOPRO LTD [2018] NZHC 2527 [26 September 2018]

Proceeding

[1]    On 30 August 2018, Ecopro Cleaning Services Ltd (Ecopro Cleaning) filed this proceeding against Ecopro Ltd (Ecopro) and Mr Matthew Rourke. The causes of action are passing off, misleading or deceptive conduct or statements under the Fair Trading Act 1986 and breach of the Trade Marks Act 2002. Ecopro Cleaning seeks an injunction restraining Ecopro from using the names “Ecopro” or “Ecopro NZ” or any other substantially similar name, requiring the respondents to change its company name and to transfer to the applicant any email address associated with a Facebook account, as well as damages. Ecopro Cleaning also seeks an interim injunction to similar effect as its injunction.

[2]    There are affidavits of service showing the proceeding has been served on the respondents. Neither of the respondents have taken any steps in the proceeding, despite numerous attempts by the applicant to engage with them. No notice of opposition to the application for the interim injunction has been filed. Neither did the respondents turn up to the call of the matter in the list this morning.

Application for interim injunction

[3]    Ecopro Cleaning presses its application for the interim injunction. Mr Skinner, for Ecopro Cleaning, says it appears the respondents have deactivated the Facebook account and are no longer trading but this is not certain.

Decision on interim injunction

[4]    On the basis of the supporting affidavit filed by Ecopro Cleaning, I consider there is a serious question to be tried on the causes of action brought by Ecopro Cleaning. I also consider the balance of convenience favours Ecopro Cleaning. I infer from Ecopro’s failure to take any steps in the proceeding that it either does not oppose it or has decided to live with the consequences of failing to take steps. In that case, the inconvenience to it of the orders sought cannot be significant.

[5]    Accordingly, I make the first of the interim orders sought by Ecopro Cleaning, to restrain the respondents’ use of the name.

[6]    I do not make the other two orders sought. They are mandatory, rather than restraining orders, which require the respondents to take actions. Mandatory orders are rarely granted as interim relief.1 Requiring a party to do something they would not otherwise do does not usually accord with the purpose of preserving the status quo pending a hearing on the application for the interim injunction.2 It is not necessary to preserve the status quo here. Rather, it would deliver to the applicant the result they seek in the injunction itself. If the respondents are indeed no longer trading, and comply with the order restraining their use of the name, the applicant’s position is sufficiently preserved.

Result

[7]    I order that Ecopro Ltd and Mr Rourke are restrained, by themselves or by their servants, agents or anyone on their behalf, from using the names “ECOPRO” or “ECOPRO NZ” or any other name substantially similar.

Palmer J


1      Soft-Tech International Pty Ltd v Ball (1990) 3 PRNZ 683 (HC) at 684; Pilkington v Fidelity Life Assurance Co Ltd HC Wellington CIV-2007-485-2270, 14 April 2010 at [18].

2      Clode v Oliphant [2018] NZHC 1442 at [21]–[23].

Details
AGLC
Ecopro Cleaning Services Limited v Ecopro Limited [2018] NZHC 2527
Case
[2018] NZHC 2527
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, Auckland Registry, Ecopro Cleaning Services Limited filed a proceeding against Ecopro Limited and Matthew John Rourke, seeking relief for passing off, misleading or deceptive conduct, and breach of the Trade Marks Act 2002. The applicant requested an injunction to prevent the respondents from using the names "Ecopro" or "Ecopro NZ," as well as damages and an interim injunction. Neither of the respondents appeared or opposed the application. The primary legal issue the court had to decide was whether to grant an interim injunction to Ecopro Cleaning Services Limited, pending a full hearing. The court also needed to determine whether the balance of convenience favoured granting the injunction.

The court found that there was a serious question to be tried on the merits of the proceeding, and that the balance of convenience favoured Ecopro Cleaning Services Limited. The court reasoned that since the respondents had not taken any steps in the proceeding, it could be inferred that they either did not oppose the injunction or had decided to accept the consequences of not doing so. The court further noted that mandatory orders, such as requiring the respondents to change their company name or transfer an email address, are rarely granted as interim relief. Instead, the court focused on preserving the status quo by restraining the respondents from using the names in question. The court concluded that the injunction was necessary to protect the applicant's position pending a full hearing.

The court made an interim order restraining the respondents from using the names "ECOPRO" or "ECOPRO NZ" or any other substantially similar name. The court did not grant the other orders sought by the applicant, as they were mandatory in nature and not appropriate for interim relief. The court's decision was based on the need to preserve the status quo pending a full hearing and to balance the interests of the parties. The court also noted that if the respondents were no longer trading, complying with the order would sufficiently preserve the applicant's position.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.