Green Acres fails to stop Garth's Mowing operating in Auckland

National lawn-mowing and household service franchise Green Acres has failed in its attempt to stop the operation of an independent lawn-mowing business in South Auckland until a dispute between the two businesses is settled.

The High Court in Auckland has allowed Garth and Gwyneth Ruebe to continue operating their business, Garth's Mowing, until the outcome of a dispute between the Ruebes and Green Acres is resolved through arbitration.

The court said if it ordered the Ruebes to cease operations they would lose the core of their business. Even if they were successful at the arbitration there was a risk the Ruebes would not be able to regain customers.

The Ruebes operated as Green Acres franchisees in South Auckland from January 2004 until January 2014, according to the High Court decision.

However, when their contract came up for renewal this year the Ruebes decided to go out on their own.

The Ruebes gave their clients the option to continue receiving their services through the new independent lawn-mowing company.

Since the end of January the Ruebes have carried out lawn mowing and gardening maintenance for people who were on their customer list when their agreement with Green Acres expired.

The court said the Ruebes believed they did not have any further obligation to Green Acres and they were free to carry on with business.

However, Green Acres believed by servicing people on the client list that they serviced when they were franchisees for Green Acres the Ruebes were in breach of the franchisee agreement.

Green Acres also claimed the Ruebes breached the restraint of trade provision within the agreement by setting up a competing business in the same area within two years of the end of their agreement with Green Acres.

Originally posted here:
Green Acres fails to stop Garth's Mowing operating in Auckland