30 July, 2018
Are you having trouble keeping track of the Tealive-Chatime dispute? To recap, here’s what happened:
On 27 June 2018, the Court of Appeal granted an injunction that ordered Tealive to cease operations (“Court of Appeal Order”)
On 5 July 2018, the Court of Appeal dismissed Tealive’s application to stay the Court of Appeal Order pending its application for leave to appeal to the Federal Court. This meant that Tealive had to comply with the Court of Appeal Order and cease operations.
Tealive has since filed an application for leave to appeal to the Federal Court
Latest update: On 16 July 2018, the Federal Court granted Tealive’s application for a stay of the Court of Appeal Order.
What does this mean?
The Federal Court’s ruling means that Tealive can temporarily stay open until the Federal Court determines Tealive’s appeal. This is not a final decision as Tealive’s fate regarding the injunction will be determined by the Federal Court later. (The issue before the Courts only relates to the interim injunction; the substantive franchise dispute is being determined by arbitration)
In a media release provided to our firm, Tealive confirmed that all stores will remain in business as usual.
What’s next for Tealive and Chatime?
Tealive will have to obtain leave to appeal to the Federal Court, to appeal against the Court of Appeal Order. If leave is obtained, the Federal Court will then proceed to hear the appeal on its merits. The Federal Court is the apex court and no further appeals lie from it.
If the Federal Court refuses to grant leave to appeal, the Court of Appeal Order stands and Tealive must cease operations.
For further information, please contact:
Donovan Cheah, Partner, Donovan & Ho
donovan@dnh.com.my
