Karimbla Properties (No 50) Pty Ltd v State of New South Wales

Karimbla Properties (No 50) Pty Ltd applied for an interlocutory injunction to restrain the State of New South Wales from exchanging contracts for the sale of public land following a tender process. The State excluded Karimbla, a shortlisted tenderer, after discovering that a related company had employed an executive responsible for the tendering process. Karimbla alleged this exclusion damaged the integrity of the tendering process. The Supreme Court of New South Wales heard the application.

The primary legal issues were whether the State owed a duty of natural justice to Karimbla during the tender process, whether the State could be subject to judicial review in its conduct of the tender, and whether the State breached any contractual duty of fair dealing. Additionally, the court assessed the balance of convenience, considering the likely damage to the State if the sale was restrained.

The court held that the prospect of establishing the State's amenability to judicial review and its obligation to afford natural justice was weak. Similarly, the prospect of establishing a breach of these obligations was also weak. The court further found that the prospect of establishing a process contract relating to the expressions of interest process was low, given inconsistencies with the express terms of the issued documents. The likelihood of Karimbla being re-admitted to the tender process and succeeding in the application was also deemed low.

The court refused the injunction based on the alleged breaches of natural justice and the contractual duty of fair dealing. The balance of convenience favoured the State, and the likely damage to the State if the sale was restrained outweighed any potential benefit to Karimbla.