Garrott v Tote Tasmania Pty Ltd & Ors

The applicants, Garrott and others, sought to restrain the respondent, Tote Tasmania Pty Ltd, and its directors from proceeding with a proposed sale of certain assets. The applicants alleged that the proposed sale was in breach of a deed of covenant and agreement entered into between the parties. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the proposed sale of assets by Tote Tasmania Pty Ltd constituted a breach of the deed of covenant and agreement. Specifically, the court had to determine the proper construction of the deed and whether the actions contemplated by the respondent fell within the scope of the restrictions imposed by that deed.

The High Court considered the language of the deed and the surrounding circumstances to ascertain the parties' intentions. Their Honours found that the deed did not impose the restrictions the applicants contended for. The court concluded that the proposed sale was not in breach of the deed and therefore dismissed the application for an injunction.