Sky Channel Pty Limited v Austar Entertainment Pty Limited & Thoroughvision Pty Limited

Sky Channel, an entity involved in the aggregation of horse racing content, brought a proceeding against Austar Entertainment and Thoroughvision, both also involved in aggregating horse racing content, as well as their joint venture. The dispute centred around the interpretation of the long-term Pay Television License Agreement. The case was heard in the Federal Court of Australia.

The central legal issue was whether Austar Entertainment and Thoroughvision breached the terms of the agreement by failing to give notice to Sky Channel that required the material bridge to be remedied. The court had to determine whether the obligation to give such notice was implied or expressly stated in the contract, and whether this obligation constituted a condition or warranty. Another issue was whether the failure to give notice amounted to an event of default.

The court held that the obligation to give notice was expressly stated in the contract. The court found that the obligation to give notice was a condition of the contract, not a warranty. The court further held that the failure to give notice constituted an event of default, entitling Sky Channel to terminate the contract. The court found that the failure to give notice was not remedied within the required time frame, and that Austar Entertainment and Thoroughvision had breached the contract. As a result, the court granted an order for damages and terminated the contract.