Sundararajah v Teachers Federation Health Limited

In the matter of Sundararajah v Teachers Federation Health Limited, the plaintiff, Dr Sundararajah, sought to establish that the defendant, Teachers Federation Health Limited, breached certain terms implied in their commercial contract. The dispute was heard and decided by the Federal Court of Australia. The primary issue was whether an obligation to act in good faith should be implied into the commercial contract when exercising the power to terminate it without cause. Additionally, the court needed to determine whether, assuming such an obligation existed, the power of termination was exercised without good faith.

The court held that the terms implied into the contract by the Trade Practices Act were not relevant to the present case. The court found that no obligation to act in good faith should be implied into the commercial contract when exercising the power to terminate it without cause. Consequently, the plaintiff failed to establish any of the bases for the relief sought. The interlocutory injunction presently in place was dissolved, and the proceeding was dismissed. The plaintiff was ordered to pay the defendant's costs of and incidental to the proceeding.