Pearson v HRX Holdings Pty Ltd [2012] FCAFC 111

FEDERAL COURT OF AUSTRALIA

Pearson v HRX Holdings Pty Ltd [2012] FCAFC 111 Citation: Pearson v HRX Holdings Pty Ltd [2012] FCAFC 111

Appeal from: HRX Holdings Pty Ltd v Pearson [2012] FCA 161

Parties: BRENT PEARSON v HRX HOLDINGS PTY LTD and ATTORNEY GENERAL OF NEW SOUTH WALES

File number: NSD 447 of 2012

Judges: KEANE CJ, FOSTER AND GRIFFITHS JJ

Date of judgment: 17 August 2012

Catchwords: CONTRACTS – restraint of trade – enforceability of post-employment restraint at common law and under Restraints of Trade Act 1976 (NSW) – construction of restraint – "business or operation similar to or competitive with" – reasonableness of scope and duration of restraint for protection of legitimate interest – relevant factors when considering reasonableness – "human face" of the business – payment during restraint period – specific consideration given for restraint period – negotiations regarding the scope and duration of restraint – receipt of independent legal and accounting advice

Words & phrases: "similar to or competitive with" "human face of"

Legislation: Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW) s 5 Restraints of Trade Act 1976 (NSW) s 4

Cases cited: Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9 cited Butt v M'Donald (1896) 7 QLJ 68 followed Elsley v J G Collins Insurance Agencies Limited [1978] 2 SCR 916 followed HRX Holdings Pty Ltd v Pearson [2012] FCA 161 related Jardin v Metcash Limited (2011) 285 ALR 677 followed Koops Martin v Dean Reeves [2006] NSWSC 449 cited Lindner v Murdock's Garage (1950) 83 CLR 628 cited Mackay v Dick (1881) 6 App Cas 251 followed Mills v Dunham [1891] 1 Ch 576 followed Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596 followed Smith v Ryngiel [1988] 1 QdR 179 cited Stacks Taree v Marshall [No 2] [2010] NSWSC 77 cited Stenhouse Australia Ltd v Phillips [1974] AC 391 cited Woolworths Ltd v Olson [2004] NSWCA 372 cited