KUALA LUMPUR, July 5 — Loob Holding Sdn Bhd has filed an appeal in the Federal Court after a court decision today that will impact its Tealive bubble tea franchise.
The Court of Appeal today dismissed its application for a stay on an injunction filed by Taiwanese tea company La Kaffa International Co Ltd that prohibits Loob from operating a business similar to the Chatime bubble tea brand.
“The Company has instructed its lawyers to file for leave to appeal to the Federal Court against the Court of Appeal’s decision given on June 27, 2018 and it has been informed that the application had been filed yesterday,” Loob said in a statement this evening.
It added its lawyers have been further instructed to make the necessary application to the Federal Court to maintain the status quo and the said application was filed earlier this morning.
La Kaffa terminated its franchise agreement with Loob last year and sought to stop the latter from using the Chatime brand.
La Kaffa claimed Loob breached commercial contractual agreements when they sought supplies from a supplier not agreed upon, and owed the company up to a year’s in franchise fees.
Loob has consistently denied the claims of contractual breach, claiming the termination of their agreement was unlawful.
The latest legal battle comes after Loob rebranded their 161 outlets from Chatime to Tealive, selling similar products, triggering the lawsuit from La Kaffa over termination agreement breaches.