Informax International Pty Ltd v Clarius Group Limited [2011] FCA 183

FEDERAL COURT OF AUSTRALIA

Informax International Pty Ltd v Clarius Group Limited [2011] FCA 183 Citation: Informax International Pty Ltd v Clarius Group Limited [2011] FCA 183

Parties: INFORMAX INTERNATIONAL PTY LTD and ISABEL MENANO-PIRES v CLARIUS GROUP LIMITED

File number: NSD 594 of 2009

Judge: PERRAM J

Date of judgment: 4 March 2011

Catchwords: CONTRACT – Independent Contractors Act 2006 (Cth) – harsh or unfair – whether restraint of trade clause harsh or unfair – application of Independent Contractors Act 2006 (Cth) to contracts terminated before application filed CONTRACT – restraint of trade – enforceability – legitimate interest – customer connexion – opportunistic disintermediation – legitimate interest for labour hire firm – employer interest in staff or contractor connexion CONTRACT – terms – entire contract or obligation – whether entire agreement term a warranty – whether breach of term TRADE PRACTICES – misleading and deceptive conduct – representation in implied assertion – opinion – implied assertion as to breach of contract and validity of restraint of trade clause – whether opinion genuinely held

Legislation: Industrial Relations Act 1996 (NSW) s 106 Independent Contractors Act 2006 (Cth) ss 5(1), 12(1), 15 Restraints of Trade Act 1976 (NSW) s 4(1) Trade Practices Act 1974 (Cth) s 52 Workplace Relations Act 1996 (Cth) ss127A, 127B

Cases cited: Adamson v New South Wales Rugby League Ltd (1991) 31 FCR 242 cited Aerotek, Inc. v Burton 835 So 2d 197 (Ala. Civ. App, 2001) cited Allied Express Transport Pty Ltd v Mears [2010] NSWSC 1112 cited Aon Risk Services Australia Ltd v Australia National University (2009) 239 CLR 175 cited Arthur Murray Dance Studios of Cleveland Inc v Witter 105 NE (2d) 685 (Ohio CP, 1951) cited Aussie Home Loans v X Services (2005) ATPR 42-060 cited Australian Securities and Investments Commission v Fortescue Metals Group [2011] FCAFC 19 cited BHP Billiton Iron Ore Pty Ltd v National Competition Council (2007) 162 FCR 234 followed Bridge v Deacons [1984] AC 705 cited Butt v M'Donald (1896) 7 QLJ 68 cited Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9 followed Carter v New South Wales Rugby League Ltd (1997) 78 IR 368 cited Columbus Medical Services, LLC v Thomas 308 S.W.3d 368 (Tenn.Ct.App, 2009) cited Consultants & Designers, Inc v Butler Service Group, Inc 720 F 2d 1553 (11th Cir, 1983) cited Daley v New South Wales Rugby League Ltd (1995) 78 IR 247 cited Dalysmith Corporation (Aust) Pty Ltd v Cray Personnel Pty Ltd (unreported, Supreme Court of New South Wales, Young J, 14 April 1997) distinguished Gerrard v Mayne Nickless Ltd (1996) 135 ALR 494 applied Hanover Insurance Brokers Ltd v Schapiro [1994] IRLR 82 cited Herbert Morris Ltd v Saxelby [1916] 1 AC 688 cited Inn Leisure Industries Pty Ltd (Provisional liquidator appointed) v D F McCloy Pty Ltd (No 1) (1991) 28 FCR 151 cited IRAF Pty Ltd v Graham [1982] 1 NSWLR 419 cited John Fairfax Publications Pty Ltd v Birt [2006] NSWSC 995 cited Koops Martin Financial Services Pty Ltd v Reeves [2006] NSWSC 449 cited Kores Manufacturing Co Ltd v Kolok Manufacturing Co Ltd [1959] Ch 108 cited Lindner v Murdock's Garage (1950) 83 CLR 628 cited Mackay v Dick (1881) 6 App Cas 251 cited Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd [1894] AC 535 cited Office Angels Ltd v Rainer-Thomas [1991] IRLR 214 cited Orton v Melman [1981] 1 NSWLR 583 cited Re Dingjan; ex parte Wagner (1995) 183 CLR 323 cited RKR Dance Studios Inc v Makowski, Superior Court, judicial district of Hartford, Docket No CV 084035468 (46 Conn L Rptr 389) (September 12, 2008, Elgo J) cited Saeed v Minister for Immigration & Citizenship (2010) 241 CLR 252 cited Saeed v Minister for Immigration & Citizenship (2009) 176 FCR 53 cited Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596 cited Transport Tyre Sales Pty Ltd v Montana Tyres Rims and Tubes Pty Ltd (1999) 93 FCR 421 distinguished Twenty-First Australia Inc v Shade (unreported, New South Wales Supreme Court, Young J, 31 July 1998) cited J D Heydon "How Far Can Trial Courts and Intermediate Appellate Courts Develop the Law" (2009) 9(1) OUCLJ 1 J D Heydon The Restraint of Trade Doctrine (3rd Ed, 2008) M Garrison and J Wendt "The Evolving Law of Employee Noncompete Agreements: Recent Trends and an Alternative Policy Approach" (2008) 45 Am Bus LJ 107 J Riley "No 'poaching' Why Not? A reflection on the legitimacy of post-employment restrictive covenants" (2005) 19(1) Comm Law Quarterly 3 P J Sales "Covenants Restricting Recruitment of Employees and the Doctrine of Restraint of Trade" (1988) 104 LQR 600