Hooker Corporation Limited v Darling Harbour Authority; Harrah's v Darling Harbour Authority; Darling Harbour Authority v Hooker Corporation Limited

The case involved a dispute between Hooker Corporation Limited and Harrah's (collectively referred to as the developers) and the Darling Harbour Authority concerning the development of a casino and hotel complex at Darling Harbour in Sydney. The developers sought to restrain the Authority from terminating their development agreements, while the Authority sought declarations that the agreements had been validly terminated and sought possession of the site. The matter was heard by the New South Wales Court of Appeal.

The primary legal issues before the Court of Appeal were whether the Darling Harbour Authority had validly terminated the development agreements with Hooker Corporation and Harrah's, and whether the developers were entitled to an injunction to prevent the Authority from terminating those agreements. The Court also considered the interpretation of various clauses within the development agreements, particularly those relating to performance standards, timelines, and the Authority's rights upon default.

The Court of Appeal found that the Darling Harbour Authority had not validly terminated the development agreements. The Court analysed the terms of the agreements and concluded that the Authority had not established a breach of contract by the developers that would justify termination. Specifically, the Court examined the performance obligations of the developers and the conditions precedent to the Authority's right to terminate, finding that these conditions had not been met. The principles applied involved the construction of contractual terms, the requirements for valid termination of a contract, and the equitable remedy of injunction.

The Court of Appeal allowed the developers' appeals and dismissed the Authority's cross-appeal. The injunctions sought by the developers were granted, preventing the Darling Harbour Authority from terminating the development agreements.