A Queenstown restaurant, The Bathhouse, lost its High Court bid for an interim injunction against an Australian spa company using a similar name in the resort town.
The companies behind Queenstown’s The Bathhouse restaurant have clashed with an Australian firm poised to launch a luxury spa and wellness centre named The Bathhouse Queenstown on Christmas Eve.
The restaurant contended that the spa’s similar name allowed it to exploit the venue’s established reputation. The High Court rejected its application to temporarily stop the Australian company from incorporating “The Bathhouse” in any trading name format.
Justice Melanie Harland ruled that the spa may open for now if it alters its trading and marketing name to “The Bathhouse Spa Queenstown,” with the full matter set for trial next year.
The Bathhouse restaurant, located on Lake Wakatipu’s waterfront, originated as a 1911 bathhouse built to honour King George V and has hosted various eateries under that name since the mid-1990s.
Meanwhile, the Bathhouse Queenstown Pty Ltd, an Australian company registered in New Zealand last month, plans to launch a luxury spa and wellness centre in Queenstown’s central business district on December 24.
The companies behind the restaurant claimed the spa breached the Fair Trading Act through its use of a similar name.
They argued the similar name would mislead or deceive customers into assuming a connection between the restaurant and spa, constituting false claims of association, sponsorship, or endorsement.
“The plaintiffs contend that the history of The Bathhouse building and the significance of its location are important drawcards which enable it to attract customers, and, as such, this is part of its goodwill,” Justice Harland said.
The plaintiffs claimed the spa company’s marketing and promotions had already misled or deceived members of the public.
The spa company, as defendant, countered that “The Bathhouse” serves as a descriptive term accurately reflecting its business and intended services.
The Bathhouse Queenstown described itself as a legitimate business operating spas and wellness centres under that name in Australia since July 2023, while expanding to other locations.
The spa company argued that reasonable consumers, especially tourists, would not be confused by the name and no harm would come to the restaurant. The spa company stated no relevant evidence showed customers confused, misled, or deceived by its activities.
“I observe that both parties have taken relatively staunch positions in relation to their respective cases,” Justice Harland said.
“I am satisfied that the balance of convenience would favour the injunctions not being issued if the defendant files a written undertaking confirming it will immediately change its trading and marketing name to “The Bathhouse Spa Queenstown” until further order of the Court.”
“I have also reached the very firm view that damages would be an adequate remedy for any losses or damage suffered by the plaintiffs in the interim if, at trial, they succeed in their claims and are successful in obtaining the substantive injunctive relief they seek.”