The Formula One event at Melbourne's Albert Park was axed just before gates opened on March 13, 2020, due to the looming threat of COVID-19.
Williams was due to perform at Lakeside Stadium the following day as part of the four-day festival but that concert was also cancelled and ticketholders refunded.
World Touring Melbourne sued the Australian Grand Prix, claiming the concert was axed because the corporation provided misleading information about government health advice.
The Australian Grand Prix corporation misled promoters on health advice for cancelling the concert. (Joel Carrett/AAP PHOTOS)
The case went to trial in May with Victorian Supreme Court Justice Clyde Croft handing down his judgment on Friday morning.
Event organisers had deceived promoters by claiming Victoria's then chief health officer Brett Sutton had directed the concert should not go ahead as planned, the judge found.
"What is clear is that no such advice had been given by the chief health officer," Justice Croft wrote in his judgment.
One of the misrepresentations came in an email sent to World Touring Melbourne from Grand Prix organisers at 4.25pm on March 13.
The email stated Dr Sutton had advised that the Grand Prix needed to be cancelled or run patron-free, with that advice extending to other activities taking place in the declared area.
Dr Sutton had actually texted Grand Prix officials about 2.50pm that day to say while he supported the decision to cancel the Williams concert, it was ultimately up to the organisers.
Organisers deceived promoters by claiming Brett Sutton directed the concert should not go ahead. (James Ross/AAP PHOTOS)
Justice Croft also noted non-essential mass gatherings were not restricted until March 16 when the pandemic state of emergency declaration came into effect.
Other events, including National Rugby League fixtures and a concert at Melbourne's Sidney Myer Music Bowl, continued to take place on the weekend of March 14 and 15.
"There was no reason to suppose that a concert of this nature could not otherwise proceed in any other part of Victoria," Justice Croft said.
The judge ordered the Australian Grand Prix Corporation to pay $2.84 million in damages to World Touring Melbourne for loss of earnings, and he reserved his decision on costs.
A Grand Prix spokeswoman said it acknowledged the court's decision and would review the judgment to determine next steps.
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