Sydney Turf Club v Crowley

The Sydney Turf Club (STC) appealed to the High Court of Australia from a judgment of the Supreme Court of New South Wales in favour of Mr Crowley. The dispute concerned the STC's refusal to grant Mr Crowley a licence to train racehorses at its premises, which Mr Crowley alleged was a breach of contract and an unlawful restraint of trade.

The High Court was required to determine whether the STC's refusal to grant Mr Crowley a licence constituted a breach of contract, and if so, whether such a restraint of trade was reasonable and therefore enforceable. The court also considered the nature of the STC's power to grant or refuse licences and the extent to which its discretion was fettered by contractual obligations or public policy considerations.

The High Court held that the STC's rules, which governed the granting of licences, did not create a contractual right for Mr Crowley to be granted a licence. The court found that the STC retained a discretion to refuse a licence, provided that discretion was exercised bona fide and for reasons related to the proper conduct of racing. As there was no contractual breach, the restraint of trade issue did not arise. The court emphasised that the STC's powers were for the regulation of racing and not for the purpose of restricting competition in the training of horses.

The appeal was allowed, and the judgment of the Supreme Court of New South Wales was set aside.