A hardware store owner has secured a significant legal advantage in his challenge against retail giant Bunnings, which plans to open a store adjacent to his business. The Federal Court has granted David Woodman, owner of Mitre 10 Jimboomba, a No Adverse Costs Order (NACO), shielding him from paying Bunnings' legal costs should he lose his case.
Mr. Woodman initiated legal action under the Competition and Consumer Act, alleging that Bunnings' planned store in Jimboomba, an outer Brisbane suburb, constitutes anti-competitive conduct. He is seeking damages for potential losses and an injunction to prevent the new store from opening. The proposed Bunnings warehouse is expected to be up to eight times larger than Mr. Woodman's existing store.
According to court documents, Mr. Woodman's lawyer, Michael Daniel, argued that Bunnings' legal costs could exceed $6 million if the case failed. He stated that Bunnings, owned by Wesfarmers, has the financial capacity to significantly outspend Mr. Woodman, who reported net profits for Mitre 10 Jimboomba ranging from less than $500,000 to less than $900,000 over the past five financial years. "The issue is not whether Woodman could, if forced to do so, pay an adverse costs order. It is whether it might be deterred from pursuing the proceeding because of that risk," Justice Robert Bromwich stated in his decision.
Justice Bromwich found that much of Bunnings' argument against the NACO departed from parliamentary intent. He ruled in favor of Mr. Woodman, stating that the NACO regime was intended to facilitate cases like this and that the order was appropriate in the circumstances. Mr. Daniel described the ruling as crucial, significantly increasing Mr. Woodman's access to justice.
Bunnings, however, maintained that opening a store in Jimboomba would offer the local community more choice and competition, alongside employment opportunities. Wesfarmers acknowledged the court's decision and stated they would continue to respond through the appropriate legal process. The retail conglomerate has previously indicated its continued interest in expanding the Bunnings network.
Mr. Woodman's family has been involved in the hardware business for 90 years, and he acquired the Jimboomba business a year before Bunnings purchased the adjacent site. The approval for the large warehouse came despite several existing Bunnings outlets operating in the vicinity. The NACO ruling allows Mr. Woodman's case to proceed without the immediate threat of potentially ruinous legal costs.
