The Court of Appeal yesterday (5 July) rejected the application for a stay by Tealive’s Loob Holding (Loob) following an injunction granted in favour of Chatime’s principal, La Kaffa International on 27th June 2018.
Loob’s application, filed a day after the Court of Appeal’s ruling of the interim injunction was rejected on the grounds that the company breached various contractual and legal obligations to La Kaffa related to its restraint of trade obligations and Malaysia’s franchise law, thereby prohibiting Loob from operating Tealive as a competing business to Chatime for a period of two years in Malaysia in accordance with the law.
Aliza Ali, group managing director of Chatime Malaysia in response to the verdict by the Court of Appeal, said: “We praise the decision made by the court and we strongly believe that this verdict will reflect Malaysia’s justice system on a positive note, strengthening confidence for more international franchisors to build trade ties in the country.”
“While we are pleased with the court’s decision today, we are very mindful of the repercussions this will have on the livelihood of the employees and outlet owners who will be directly affected by the injunction order, along with our customers who have been our business priority from day one,” she continued.
In the release, she also remarked: “Within the scope allowed by relevant law, we would welcome former Chatime franchisees and employees who have been affected by the whole ordeal to contact us should they require assistance from us. Our decision to allow those affected outlets to return and re-operate under Chatime, was made in regards to the overwhelming request in light of the recent injunction granted by the court. Our doors are open to the employees and outlet owners who have found themselves in this precarious position today. They are our priority at the moment.”
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