NSW courts will resolve BOQ claims

The Supreme Court of New South Wales looks like being the jurisdiction to sort out the escalating series of cases brought by owners of failed franchises of the Bank of Queensland in Sydney.

The Federal Court yesterday ruled that it would transfer a number of cases brought by the owners of franchises in Maroubra Junction, Hurstville and Bathurst to the state jurisdiction. The Supreme Court has already taken over some cases first brought in the Industrial Relations Commission.

Franchisees are making a number of claims against the bank and its executives under contract law and the Trade Practices Act relating to the bank's conduct before and during the term of their operation of the franchises.

The overwhelming majority of BOQ branches in New South Wales are trading well below budget and a dozen or so have handed in their keys since the bank began investing in the state four years ago.