Redfern v Dunlop Rubber Australia Ltd

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Redfern v Dunlop Rubber Australia Ltd
Coat of Arms of Australia.svg
Court High Court of Australia
Decided 25 February 1964
Citation(s) [1964] HCA 9, (1964) 110  CLR  194
Case opinions
(7:0) Section 4 of the Australian Industries Preservation Act applied to a contract in the restraint of trade which dealt with intrastate and interstate trade. (per Dixon CJ, McTiernan, Kitto, Taylor, Menzies, Windeyer & Owen JJ)
Court membership
Judge(s) sitting Dixon CJ, McTiernan, Kitto, Taylor, Menzies, Windeyer and Owen JJ

Redfern v Dunlop Rubber Australia Ltd, [1] was a case decided in the High Court of Australia regarding the scope of the trade and commerce power in section 51(i) of the Constitution.

High Court of Australia supreme court

The High Court of Australia is the supreme court in the Australian court hierarchy and the final court of appeal in Australia. It has both original and appellate jurisdiction, the power of judicial review over laws passed by the Parliament of Australia and the parliaments of the states, and the ability to interpret the Constitution of Australia and thereby shape the development of federalism in Australia.

Contents

Background

The plaintiffs, Highway Tyre Service, Pakenham Tyre Service, and H.J. King Tyre Service ("Redfern") were three companies engaged in carrying on the business of buying, selling and dealing in motor and cycle tyres and tubes. The defendants consisted of five companies: Dunlop Rubber Australia Limited, B.F. Goodrich Australia Pty. Limited, The Olympic Tyre & Rubber Co. Proprietary Limited, Hardie Rubber Company Pty. Limited, and The Goodyear Tyre & Rubber Co. (Australia) Limited. These companies were all incorporated in the state of Victoria.

Victoria (Australia) State in Australia

Victoria is a state in south-eastern Australia. Victoria is Australia's smallest mainland state and its second-most populous state overall, making it the most densely populated state overall. Most of its population lives concentrated in the area surrounding Port Phillip Bay, which includes the metropolitan area of its state capital and largest city, Melbourne, Australia's second-largest city. Victoria is bordered by Bass Strait and Tasmania to the south, New South Wales to the north, the Tasman Sea to the east, and South Australia to the west.

The companies entered into a series of contracts between them, which contained terms to the effect of fixing the prices of goods for traders, and the terms on which the goods could be retailed. It was alleged that all of this was done in restraint of, or with intent to restrain, trade and commerce among the States. The plaintiffs claimed that damage resulted from the contracts, arising in their inability to obtain tyres and other goods at wholesale prices and the ability to obtain them only at the prices established under the contracts.

The case involved the Australian Industries Preservation Act, which made it an offence to enter into a contract covering a restraint of trade. The action was commenced in the original jurisdiction of the High Court. The defendants objected to the sufficiency of the claims and the case was referred to the Full Court.

Decision

The issue present was whether the Commonwealth Act could regulate contracts concerning trade and commerce of companies within a single state. The High Court held that the Commonwealth could render the contract void, even if it contained terms that cover purely intrastate trade. This involved a practical consideration where a party could void the involvement of the Commonwealth in regulating trade and commerce by simply inserting an intrastate clause in a contract.

Menzies J stressed the importance of the principle that the Commonwealth's power over trade and commerce extends only to intrastate trade and commerce that is inseparably connected with interstate trade and commerce. Menzies J further noted that this principle was quite consistent with allowing the Commonwealth the power to prohibit or regulate acts that relate to intrastate trade and commerce if they relate to interstate trade and commerce or overseas trade and commerce as well

The High Court hence unanimously adopted Owen J's dissent in Swift Australian Co (Pty) Ltd v Boyd Parkinson, [2] by holding that the Commonwealth was within power to produce legislation covering mixed activities.

<i>Swift Australian Co (Pty) Ltd v Boyd Parkinson</i>

Swift Australian Co (Pty) Ltd v Boyd Parkinson, was a case decided in the High Court of Australia regarding the scope of the trade and commerce power in section 51(i) of the Constitution.

See also

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References

  1. Redfern v Dunlop Rubber Australia Ltd [1964] HCA 9 , (1964) 110 CLR 194(25 February 1964), High Court
  2. Swift Australian Co (Pty) Ltd v Boyd Parkinson [1962] HCA 41 , (1962) 108 CLR 186(8 August 1962), High Court.

George Graham Winterton was an Australian academic specialising in Australian constitutional law. Winterton taught for 28 years at the University of New South Wales before taking up an appointment of Professor of Constitutional Law at the University of Sydney in 2004.