Krstic v Brindley [2006] NSWSC 1414

Krstic v Brindley [2006] NSWSC 1414

The threatened transfer of one poker machine entitlement was likely to breach the lessee's covenant to use best endeavours to maintain and extend the business of the Royal Hotel, Temora. Although the covenant allowed the lessee to choose ancillary business activities, the defendant adduced no evidence that removal of the entitlement and associated poker machine was part of any larger reasonable plan to maintain and extend patronage, and the court was entitled to infer that it was not. The plaintiffs did not establish breach of the covenants concerning preservation of character or adequate equipment, but breach of the best endeavours covenant justified an injunction limited to the current...

Jurisdiction
Australia
Judgment Date
01 December 2006
Procedural Posture
Application for Final Injunction Restraining Transfer of Poker Machine Entitlement / Ex Tempore Judgment
Outcome
Injunction granted restraining the particular proposed transfer of one poker machine entitlement; defendant ordered to pay the plaintiffs' costs.
Legal Topics
['poker Machine Entitlements' 'lease Covenants' 'best Endeavours to Maintain and Extend Business' 'business of Hoteliers' 'injunction']
['gaming and Wagering' 'liquor Law' 'landlord and Tenant'] ['poker Machine Entitlements' 'lease Covenants' 'best Endeavours to Maintain and Extend Business' 'business of Hoteliers' 'injunction']

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Procedural Posture

Application for Final Injunction Restraining Transfer of Poker Machine Entitlement / Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether the lease covenant to use best endeavours to maintain and extend the business prevented the lessee from seeking transfer of one poker machine entitlement from the Royal Hotel, Temora.' 'Whether removal of a poker machine entitlement would breach the covenant to preserve and improve the character of the business with licensing authorities and the public.' 'Whether removal of a poker machine entitlement and physical poker machine would breach the covenant to properly and adequately equip the premises with furniture, furnishings and plant.']

Ratio Decidendi

The threatened transfer of one poker machine entitlement was likely to breach the lessee's covenant to use best endeavours to maintain and extend the business of the Royal Hotel, Temora. Although the covenant allowed the lessee to choose ancillary business activities, the defendant adduced no evidence that removal of the entitlement and associated poker machine was part of any larger reasonable plan to maintain and extend patronage, and the court was entitled to infer that it was not. The plaintiffs did not establish breach of the covenants concerning preservation of character or adequate equipment, but breach of the best endeavours covenant justified an injunction limited to the current...

Court Disposition

Injunction granted restraining the particular proposed transfer of one poker machine entitlement; defendant ordered to pay the plaintiffs' costs.

Orders

  • ['Order 2 made in accordance with the summons, restraining the defendant from further prosecuting before the Liquor Administration Board the application to transfer one poker machine entitlement from the Royal Hotel, Temora to a particular hotel in Armidale during the term of the current lease between the parties.'...