Hoyts Multi-Plex Cinemas Pty Ltd v Fox Entertainment Precinct Pty Ltd

Hoyts Multi-Plex Cinemas Pty Ltd sought an injunction to restrain Fox Entertainment Precinct Pty Ltd from building a multiplex cinema in Sydney. The Supreme Court of New South Wales heard the application. The primary legal issue was whether Fox Entertainment Precinct Pty Ltd's proposed cinema would constitute an unconscionable restraint of trade against Hoyts Multi-Plex Cinemas Pty Ltd. Additionally, the court needed to determine whether there was a sufficient likelihood that the proposed cinema would cause substantial damage to Hoyts Multi-Plex Cinemas Pty Ltd's business.

The court examined the principles of restraint of trade and the balance between protecting a party's legitimate business interests and allowing freedom of trade. The court found that there was no evidence to suggest that the proposed cinema would cause substantial damage to Hoyts Multi-Plex Cinemas Pty Ltd's business. It was also held that there was no unconscionable restraint of trade as Fox Entertainment Precinct Pty Ltd had not acted in an unconscionable manner in proposing to build the cinema. The court concluded that the proposed cinema did not pose an unreasonable threat to Hoyts Multi-Plex Cinemas Pty Ltd's business interests.

As a result, the court dismissed Hoyts Multi-Plex Cinemas Pty Ltd's application for an injunction. The court also ordered that Hoyts Multi-Plex Cinemas Pty Ltd pay the costs of the application to the extent that such costs were incurred after the directions hearing of 5 August 2003. Subject to this order, there was no order as to the costs of the application.