NSW Caselaw
New South Wales Supreme Court
CITATION : McHugh Holdings Pty Ltd v Newtown Colonial Hotel Pty Ltd [2008] NSWSC 542
HEARING DATE(S) : 7 May 2008 JURISDICTION : Equity Division Expedition List
JUDGMENT OF : Brereton J
EX TEMPORE JUDGMENT DATE : 9 May 2008
DECISION : On proper construction of lease, the lessor is bound not to make a s 42 application for transfer of the licence. To decline to grant relief would be to disregard lawfully created contractual obligations. The restraint protects no legitimate interest of the lessor and is void. Lessor restrained from making application to Licensing Court for transfer of licence. Cross-claim to enforce restraint of trade dismissed.
CATCHWORDS : LIQUOR AND GAMING – liquor licence – where hotel lease provides that licence is property of licensee solely and that upon and after termination of lease the lessee may deal with licence – whether lessor can apply for transfer to it of licence – whether Court should restrain lessor from making application to Licensing Court for such transfer – whether lessor or lessee entitled to transfer poker machine entitlements. - RESTRAINT OF TRADE – validity – protectable interest – lessor's interest in premises being licensed – whether restraint protects interest in locational goodwill – whether restraint protects any other legitimate interest.
(NSW) Liquor Act 1982, s 42 LEGISLATION CITED : (NSW) Gaming Machines Act 2001, s 19(3)(c) (NSW) Restraints of Trade Act 1976, s 4(1)
CATEGORY : Principal judgment
Australian Performing Rights Association Ltd v Monster Communications Pty Ltd [2006] FCA 1806 Boreland v Docker [2007] NSWCA 94 Brown v Heffer (1967) 116 CLR 344 Butts v O'Dwyer (1952) 52 SR (NSW) 256 Cactus Imaging Pty Ltd v Peters [2006] NSWSC 717 Dalgety Wine Estates Pty Ltd v Rizzon (1979) 141 CLR 552 Duncan v Mell (1914) 14 SR (NSW) 333 Ex parte Berry; Re Kessell (1936) 36 SR (NSW) 485 Fitzgerald v Masters (1956) 95 CLR 420 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 Jabetin Pty Ltd v Liquor Administration Board [2005] NSWCA 92; (2005) 63 NSWLR 602 CASES CITED : Koops Martin Financial Services v Reeves [2006] NSWSC 449 Lindner v Murdock's Garage (1950) 83 CLR 628 Masters v Garcia [2005] NSWCA 287; (2005) 65 NSWLR 92 Mouat v Ross (1935) 35 SR (NSW) 566 Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd [1894] AC 535 Public Trustee for New South Wales v Gavel (1927) 40 CLR 169 Slatter v Railway Commissioners (NSW) (1931) 45 CLR 68 St Edmundsbury & Ipswich Diocesan Board of Finance v Clark (No 2) [1973] All ER 902 Tank Lining Corporation v Dunlop Industrial Pty Ltd (1982) 140 DLR (3d) 659 Tooheys Ltd v Housing Commission of New South Wales (1953) 53 SR (NSW) 407 Vanderwell Products Ltd v McLeod [1957] RPC 185 Whiteman Smith Motor Co v Chaplin [1934] 2 KB 35 Wilson v Wilson (1854) 5 HL Cas 40
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