Metropolitan Properties Pty Limited v Caltex Petroleum Pty Limited

Metropolitan Properties Pty Limited brought proceedings against Caltex Petroleum Pty Limited in the Supreme Court of New South Wales, seeking an injunction and damages. The dispute centred on an alleged breach of contract and interference with the plaintiff's business operations by the defendant. The plaintiff sought an interim injunction to restrain the defendant from continuing the alleged breaches and damages for the harm caused. The defendant contested the claims and argued that any relief should be subject to an undertaking as to damages.

The central legal issues before the court were whether the plaintiff was entitled to an interim injunction and, if so, what terms, if any, should accompany it. Additionally, the court had to consider whether the defendant's application for an undertaking as to damages was justified and whether an enquiry into the defendant's potential liability for damages should proceed before the trial on the merits. The court needed to balance the plaintiff's right to protect its business interests against the defendant's right to have its case heard on the merits without prejudice from a potentially unwarranted interim order.

In its decision, the court found that the plaintiff had made out a prima facie case for an interim injunction. The court was satisfied that the plaintiff's business was likely to suffer irreparable harm if the defendant's actions were not restrained. However, the court required the plaintiff to provide an undertaking as to damages, as requested by the defendant. The court reasoned that this requirement was necessary to protect the defendant's interests and ensure that the interim relief was not granted without adequate consideration of the potential consequences for the defendant. The court also noted that an enquiry into the defendant's liability for damages could proceed before the trial on the merits if it was deemed appropriate. The court concluded that the plaintiff's application for an interim injunction should be granted, subject to the terms agreed upon.