A family-owned hardware store at Jimboomba has won a Federal Court lifeline that means it can afford to keep fighting to stop retail Goliath Bunnings from moving in next door.
The ruling protects Woodmans Mitre 10 from paying Bunnings’ legal costs – expected to be millions of dollars – regardless of the case’s outcome.
Bunnings was also ordered to pay Woodmans’ costs of obtaining that protection.
Woodmans’ solicitor Michael Daniel estimated the family company’s own legal costs would reach at least $3.94 million, while Bunnings’ actual costs were expected to exceed $6 million.
Woodmans is fighting Bunnings’ plan to open a 15,000sqm warehouse on the adjoining site.
The warehouse would be more than eight times the size of its 1770sqm shop.
Behind the Jimboomba Mitre 10 are David Woodman, his brother Kerry, father Garnie, and David’s son Brendan is the third generation involved.
Describing the financial gulf between the businesses, Judge Robert Bromwich said: “This is not some marginal difference.”
“It is chalk and cheese.”
Judge Bromwich said Woodmans’ evidence indicated it would be deterred from pursuing the proceeding if there was even a possibility it could be ordered to pay Bunnings’ recoverable costs.
Judge Bromwich found the case could also matter far beyond Jimboomba — potentially concerning other hardware stores across the country.
“Given that that is alleged to be a national market, the resolution of that question is likely to be significant for any hardware retailer in Australia facing adverse commercial outcomes as a result of Bunnings expanding in its area,” he said.
“This proceeding raises issues that might well be significant for independent hardware retailers contending with Bunnings in a way that imperils their commercial viability,” Judge Bromwich said.
He said section 46 of competition law had apparently never been applied in comparable circumstances involving “the expansion of a competitor”.
Judge Bromwich was deciding whether Woodman qualified for costs protection — not whether its underlying allegations were proven.
“The range of outcomes might be that, following the determination of this action, no such retailers have any case at all, or that some of them might well have a case,” Judge Bromwich said.
Woodmans alleges the development would deprive its store of enough sales to remain commercially viable and substantially reduce local retail hardware competition.
It does not allege Bunnings has an anti-competitive purpose or predatory intent, the Judge said.
During the June hearing, Woodmans’ barrister Peter Strickland said Bunnings had a “substantial degree of market power”, citing “exclusive supplier arrangements” and “high barriers to entry”.
Bunnings disputed the case.
Its barrister, Garry Rich, said taking sales from another business was not itself unlawful.
“There is nothing anti-competitive or unlawful of Bunnings depriving Mitre 10 of sales,” he said.
“That is the essence of competition. That’s what competitors do.”
Bunnings said in a statement last year the project formed part of “a long-term plan to expand in growing areas” and was never about eliminating competition.
Judge Bromwich found Woodmans had raised “reasonable issues for trial”, including whether the warehouse would increase competition or ultimately reduce it by forcing an independent retailer from the market.
But he cautioned: “That is not necessarily to conclude that Woodmans has a strong case.”
Court documents state Bunnings’ 2024–25 revenue was $19.6 billion, and earnings before tax were $2.3 billion.
The same documents state Jimboomba Mitre 10 recorded sales of about $6.14 million, mostly from retail customers.
A development application for the new Bunnings store has been lodged through Logan City Council’s approval system.
Earthworks were approved on 15 July, external roadworks on 12 August and a Stage 1 structural application for 22-26 Anders Street was lodged on 18 August.
Woodmans bought Scurr Bros at Beenleigh in 1995, in an acquisition that also included the Mt Gravatt shop.
They then bought the Jimboomba store in November 2018.
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