The Court Has Dismissed An Injunction Seeking To Stop Tealive's Operations In Malaysia
La Kaffa sought to cease Tealive's operations as it is a similar business to Chatime's.
By Samantha Khor — 30 May 2017, 01:26 PM
Looks like the Chatime vs. Tealive drama might be coming to an end soon. In a recent development, the High Court in Kuala Lumpur has dismissed an injunction filed by La Kaffa International Co Ltd against Loob Holding Sdn Bhd.
La Kaffa, the Taiwanese company who owns the Chatime brand name, filed an injunction against Loob Holdings on 17 February following a highly-publicised business dispute.
The injunction sought to stop Loob Holdings from carrying a similar business as Chatime i.e. to cease operations of all Tealive outlets, which Loob rebranded all Chatime outlets under its management to following the sudden termination of its master franchisee contract in January.
The dismissal of the injunction bid means that Tealive can continue its business as usual and is free to legally operate in Malaysia. Following the court's decision, Loob Holding CEO Bryan Loo posted the following notice on Facebook:
However, Judicial Commissioner Wong Kian Kheong added that the decision is still subject to the Singapore International Arbitration Centre’s outcome on the arbitration. On that note, the court also ordered Loob Holding to disclose its monthly gross sales to assist in arbitration proceedings.
According to news reports, Judicial Commissioner Wong Kian Kheong ruled in an oral judgement that the injunction would cause great risk of injustice to Loob Holding and its business as well as its associates
"Its 161 Tealive stores and sub franchisees will have to close shop," he said.
"The lives of its 800 staff, third parties associated with the business, the shops’ landlords, suppliers and creditors will be adversely affected."
The court also found that the contract termination by La Kaffa was done in bad faith
La Kaffa Chairman Henry Wang (right) presenting an award to Loob Holding CEO Bryan Loo (left).
Image via World Branding AwardsAccording to a report by Free Malaysia Today, Wong said, "On one side, La Kaffa sent a notice of arbitration to Loob last October and demanded payment of US600,000, while on the other hand the company awarded Loob its best partner award."
"La Kaffa also issued media statements to say they are taking over. The Chatime management was against the 45 days’ exit period in the franchise contract."