Corporate Cabs throwing the book at a former driver as a warning shot for other drivers was of limited success when the High Court ruled there was no Fair Trading Act breach by drivers setting up a rival business under a different name.
Prem Kumar’s driver contract with Corporate Cabs Ltd was terminated in late 2017, after some eighteen months working for the company. Drivers working with Corporate Cabs are categorised as owner/operators. They are required to purchase their vehicle from a Corporate Cabs nominated supplier and comply with Corporate’s rules for fit-out and signage.
The High Court was told Mr Kumar’s contract was terminated for breaching Corporate Cab rules. He then adapted signage on his car describing his new business as ‘Business Cab’ but used Corporate Cabs’ font and dark-blue background for his new logo. Corporate Cabs sued alleging breach of his owner/operator contract, breach of the Fair Trading Act and breach of the Trade Marks Act. Mr Kumar did not appear in court. There were suggestions he had moved to India.
Corporate Cabs said an example had to be made of Mr Kumar; drivers might otherwise assume they could breach Corporate Cabs rules with impunity. Evidence was given that Mr Kumar changed the branding of his new business after Corporate Cabs objected; adding a silver fern to the name Business Cab and changing the background colour to black.
Justice Harvey ruled Mr Kumar was not in breach of the Fair Trading Act. There was no evidence of customers being confused between the two businesses. Corporate Cabs is primarily a taxi-booking service. Mr Kumar’s new business operated from kerbside hires. The amended branding was not misleading or deceptive, Justice Harvey ruled.
An injunction was granted prohibiting Mr Kumar in the future from using any branding on his taxi which is similar to Corporate Cabs branding.
Corporate Cabs Ltd v. Kumar – High Court (17.05.22)
22.087