Masters v Garcia (No 2)

In *Masters v Garcia (No 2)*, the New South Wales Court of Appeal considered an appeal concerning the transfer of poker machine entitlements. The dispute arose from a prior decision of Einstein J, where declarations and orders were made regarding these entitlements. The appeal was brought by the Appellants against the First Respondent, with the Second Respondent also involved in the proceedings.

The central legal issues before the Court of Appeal were whether an order in the nature of specific performance was appropriate for the transfer of poker machine entitlements created under the *Gaming Machines Act 2001* (NSW). The court also had to consider the consequences of a failure to file a notice of contention and whether damages would constitute an adequate remedy in the circumstances.

The Court of Appeal allowed the appeal, setting aside the previous declarations and orders. In their place, the court ordered that the Second Respondent was to take all necessary steps, at the cost of the First Respondent, to transfer the poker machine entitlements allocated to a specific hotelier’s licence. This included signing documents, making applications for approval to the Liquor Administration Board, giving effect to variations of authorisation under the *Gaming Machines Act*, and accounting for the proceeds of sale as directed by the First Respondent. The Second Respondent was also restrained from dealing with the entitlements otherwise than in accordance with the First Respondent’s directions and from obstructing the sale and transfer. The Appellants were ordered to pay 75% of the First Respondent’s costs. Liberty was granted to the First Respondent to apply to a judge of the Equity Division if the Appellants unlawfully interfered with the Second Respondent’s compliance with the orders.