Corporate Transport Services v Toll

The applicant, Corporate Transport Services, sought an interlocutory injunction against the respondent, Toll, to restrain Toll from terminating its contract with the applicant. The case was heard in the Federal Court of Australia. The primary issue before the court was whether to grant an interlocutory injunction that would effectively be final, considering the relationship of trust and confidence between the parties. A secondary issue was whether the court could consider the interests of non-parties in deciding whether to grant the injunction.

The court considered the nature of the relationship between the parties, noting that the applicant and respondent had a close working relationship and were in a position of personal trust and confidence. The court also examined the balance of convenience, taking into account the interests of non-parties, which is generally not permitted. However, in this case, the court found that the interests of non-parties could be considered due to the unique circumstances. The court further assessed the need for an undertaking as to damages, which must come from someone financially capable of performing it. Ultimately, the court found that the applicant had not provided sufficient evidence to support the granting of an interlocutory injunction, particularly in light of the dispute over the validity of the termination of the contract. The court emphasised that the appropriate form of order would depend on the specific circumstances of each case, including the nature of the relationship between the parties and the balance of convenience.