KUALA LUMPUR: The High Court here dismissed an injunction bid by Chatime owner, La Kaffa International Co Ltd, against its former franchise holder, Loob Holding Sdn Bhd, from carrying a similar business as Chatime.
Judicial Commissioner Wong Kian Kheong, in his oral judgement, ruled that the injunction would cause great risk of injustice to Loob Holding and its business and also associates.
“Its 161 Tealive stores and sub franchisees will have to close shop.
“The lives of its 800 staff, third parties associated with the business, the shops’ landlords, suppliers and creditors will be adversely affected,” he said.
Wong added with this decision, Loob can continue its business as usual, competing with La Kaffa, subject to the Singapore International Arbitration Centre’s outcome on the arbitration.
这个判决只是代表 La Kaffa暂时拿不到injunction(考虑到tealive的员工和生意,还有La Kaffa的一些技术失误)。
We reached out to Lai Chee Hoe, a lawyer who advises F&B brands and who is also the founder and CEO of Burgielaw.com and asked him what are La Kaffa’s options against Loob Holdings and the entity Tealive:
“It’s not easy to argue against the non-competition clause because Tealive appears to be in a similar business segment.”
We also wanted to know Loob Holding’s chances against the injunction to which we asked lawyer Louis Liaw, a general litigator from Ramrais and Partners:
"Firstly, La Kaffa has to prove number one, that this is a serious issue that needs to be tried. They have to prove that they have to go to court. Secondly, they have to prove that damages to La Kaffa's business cannot be compensated by money. Finally, the court will consider the balance of convenience. This means they will consider if it is easier to stop Tealive or let them continue. For example, the courts may consider the loss of jobs for the Tealive employees as a factor to the case and let Tealive continue."
"It is pretty much 50/50 up to the courts at this time which is in terms of where the balance of convenience lies."
之前就有律师已经说过了,法庭会考虑到the damages cannot be compensated by money,才会给injunction。