A brewery owner is suing the University of Canberra, claiming he lost $1.6 million after a competing bar was opened on campus in breach of an agreement.
Subscribe now for unlimited access.
or signup to continue reading
The owner of Zierholz Brewery, Restaurant & Bar and the plaintiff in the case, Christoph Zierholz, gave evidence in the first day of the trial on Monday.
The ACT Supreme Court heard the bar and restaurant, Zierholz@UC, opened in 2012 in partnership with the university and the University of Canberra Union.
But in 2015 the university and union opened their own bar, restaurant and events venue, the Well.
Mr Zierholz alleges the Well was in direct competition with his bar and was in contravention of their agreement.
A spokeswoman from the University of Canberra said it would be vigorously defending the allegations in court.
The court was told Mr Zierholz was approached by the University of Canberra in 2009 to consider relocating his brewery to the university campus.
He was told the university wanted to reinvigorate its campus and attract people from the Belconnen area to its retail precinct, the court heard.
Mr Zierholz said they wanted to avoid the "hose-out venue" reputation of the former student bar.
He told the court events at the bar were taken away from him from 2013, and in May 2015 the rival bar was opened.
He said he found out in 2014 that another bar would be opening at the campus, but it was initially described to him as a lounge and a "quiet area" where students could hang out away from staff.
Mr Zierholz told the court the lounge started sounding more and more like a bar, while he was given fewer and fewer events and less promotion.
"We were concerned we were basically being sidelined and the [University of Canberra Union] were pursuing their separate agenda away from our partnership," he said.
He said he told the university it would be breaking their deal if it went ahead with the additional bar.
He is claiming losses of $1.6 million, for which he wants to be compensated.
The University of Canberra spokeswoman said the allegations would be vigorously defended against.
"We value our relationships with our retail and commercial entities and work hard to ensure these entities on campus work with us to give students and staff the best experience of vibrant university life," she said.
"We look forward to resolving this matter through due process in the court.”
The trial, before Justice John Burns, continues.
