Testarossa Pty Ltd v Portrich 2 Pty Ltd [2007] NSWSC 738

New South Wales Supreme Court

CITATION : Testarossa Pty Ltd v Portrich 2 Pty Ltd [2007] NSWSC 738

HEARING DATE(S) : 4/07/07

JUDGMENT DATE : 9 July 2007

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : Interlocutory injunction granted.

CATCHWORDS : EQUITY [341]- Equitable remedies- Injunctions- Interlocutory injunctions- Covenant in hotel lease against lessees acting to affect value of business- Defendant lessees wish to sell three poker machine entitlements- Plaintiff lessor claims this is breach- Damages only suffered at end of long lease- Whether interlocutory injunction should be granted- Principles considered- Injunction granted. LANDLORD &TENANT [45]- Covenant- Hotel lease containing covenant against diminishing value of business- Proposed disposal of three poker machine entitlements by lessees- Whether breach- Whether interlocutory injunction should go.

Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 Bullock v Federated Furnishing Trades Society of Australasia (No 1) (1985) 5 FCR 464 Castlemaine Tooheys Ltd v South Australia (1986) 161 CLR 148 Cayne v Global Natural Resources plc [1984] 1 All ER 225 Dartford Brewery Company Ltd v Till (1906) LT 636 Goyal v Chandra (2006) 12 BPR 23,553 CASES CITED : Heard v Stuart (1907) 24 TLR 104 Hooper v Brodrick (1840) 11 Sim 47; 59 ER 791 Kolback Securities Ltd v Epoch Mining NL (1987) 8 NSWLR 533 Mostyn v Lancaster (1883) 23 Ch D 583 Nuneaton Local Board v General Sewage Company (1875) LR 20 Eq 127 Phipps v Jackson (1887) 56 LJ Ch 550 Shercliff v Engadine Acceptance Corporation Ltd [1978] 1 NSWLR 729 Terceiro v Elmore [2006] NSWSC 893