Contract judgment setback for Woolworths

Durban High Court Acting Judge Gavin Morley ruled that Woolworths had not acted in good faith when it had attempted to open up in direct competition to Watson. He also ruled that Woolworths had placed its own interest above those of Watson’s, which, in terms of the agreement between the two, it was not entitled to do, says a report in The Mercury. The store was scheduled to open this week. But the ruling means that it cannot open for as long as Watson’s contract with Woolworths, which is set to expire in eight years, stands. As the anchor tenant, and with all the fixtures in place for the proposed opening, the judgment will impact on both the owner of the new centre and on Woolworths. It will also affect the way in which Woolworths contracts with other dealers in the future, and on about 20 other similar ‘franchise’ agreements already in operation. Full report in The Mercury (subscription needed)