Findex Group Limited v McKay [2019] FCA 2129

FEDERAL COURT OF AUSTRALIA

Findex Group Limited v McKay [2019] FCA 2129 File number: VID 1026 of 2016

Judge: STEWART J

Date of judgment: 18 December 2019

Catchwords: CONTRACTS – formation – executed by director on behalf of corporation – whether signature is also binding on director personally – construction TRADE AND COMMERCE – restraint of trade –restraint in shareholders' agreement governing relationship between shareholders of financial planning business – whether reasonably necessary to protect legitimate interests CONTRACTS – restraint of trade – protection of goodwill – whether reasonably necessary to protect legitimate interests – whether enforceable – whether unreasonable restraints severable – duration of restraint – area of restraint – cascading areas and duration CONTRACTS – restraint of trade – whether restraint clauses breached – whether any loss suffered – who suffered loss – whether all or part of the loss avoidable CORPORATIONS – s 183 Corporations Act 2001 (Cth) – whether breached by use of company information – whether injunction should issue – discretion

Legislation: Corporations Act 2001 (Cth) ss 9, 20, 183, 500(2), 911A(1), 1324

Cases cited: Adamson v New South Wales Rugby League Ltd [1991] FCA 550; 31 FCR 242 Agricultural and Rural Finance Pty Limited v Gardiner [2008] HCA 57; 238 CLR 570 Alonso v SRS Investments (WA) Pty Ltd [2012] WASC 168 Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd [1973] HCA 40; 133 CLR 288 Bebonis v Angelos [2003] NSWCA 13; 56 NSWLR 127 Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61 British Reinforced Concrete Engineering co Ltd v Schelff [1921] 2 Ch 563 Butt v Long [1953] HCA 76; 88 CLR 476 Byrnes v Kendle [2011] HCA 26; 243 CLR 253 Cactus Imaging Pty Ltd v Peters [2006] NSWSC 717; 71 NSWLR 9 Clark Equipment Credit of Australia Ltd v Kiyose Holdings Pty Ltd (1989) 21 NSWLR 160 Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 24; 149 CLR 337 Commissioner for Corporate Affairs v Green [1978] VR 505 Connors Bros Ltd v Connors [1940] 4 All ER 179 D Bates & Co v Dale [1937] 3 All ER 650 Deeks v Little Moreton Trading Pty Ltd (1995) 14 WAR 58 Del Casale v Artedomus (Aust) Pty Ltd [2007] NSWCA 172; 73 IPR 326 Eastwood Co-operative Society Ltd v Williams (1932) 32 SR (NSW) 403 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; 251 CLR 640 Equity Nominees Ltd v Tucker [1967] HCA 22; 116 CLR 518 Esso Petroleum Co Ltd v Harper's Garage (Stourport) Ltd [1968] AC 269 Extraman (NT) Pty Ltd v Blenkinship (2008) 23 NTLR 77; 220 FLR 375 Federal Commissioner of Taxation v Murry [1998] HCA 42; 193 CLR 605 Findex Australia Pty Limited v McKay [2019] FCA 335 Fitch v Dewes [1921] 2 AC 158 Follacchio v Harvard Securities (Aust) Pty Ltd [2002] FCA 1067 Forkserve Pty Ltd v Jack [2000] NSWSC 1064; 19 ACLC 299 GBAR (Australia) Pty Ltd v Brown [2017] 2 Qd R 256 Geraghty v Minter [1979] HCA 42; 142 CLR 177 Harris v Burrell & Family Pty Ltd [2010] SASCFC 12 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 Inland Revenue Commissioners v Muller & Co's Margarine Ltd [1901] AC 217 Just Group Limited v Peck [2016] VSCA 334; 344 ALR 162 Lindner v Murdock's Garage [1950] HCA 48; 83 CLR 628 Lloyd's Ships Holdings Pty Ltd v Davos Pty Ltd [1987] FCA 70; 17 FCR 505 McCann v Switzerland Insurance Australia Ltd [2000] HCA 65; 203 CLR 579 McHugh v Australian Jockey Club Ltd [2014] FCAFC 45; 314 ALR 20 Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd [1894] AC 535 Nuclear Decommissioning Authority v Energy Solutions [2017] UKSC 34; [2017] 1 WLR 1371 Padstow Corporation Pty Ltd v Fleming (No 2) [2011] NSWSC 1572; 86 ACSR 636 Parker & Co Ltd v Woollands (1924) 26 WALR 172 Peters American Delicacy Co Ltd v Patricias Chocolates & Candies Pty Ltd [1947] HCA 62; 77 CLR 574 Pico Holdings Inc v Wave Vistas Pty Ltd (formerly Turf Club Australia Pty Ltd) [2005] HCA 13; 214 ALR 392 Pilkington v Wood [1953] Ch 770 Pioneer Concrete Services Ltd v Galli [1985] VR 675 Positive Endeavour Pty Ltd v Madigan [2009] SASC 281 Scottish Amicable Life Assurance Society v Reg Austin Insurances Pty Ltd (1985) 9 ACLR 909 Singh v De Castro; Dhaliwal v De Castro; Brar v De Castro [2017] NSWCA 241 Southern Cross Computer Systems Pty Ltd v Palmer (No 2) [2017] VSC 460 Tomko v Palasty [2007] NSWCA 258 Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd [1998] HCA 38; 192 CLR 603 Walker v Medlicott & Son [1999] 1 WLR 727 (EWCA) Western Trust & Savings Ltd v Travers & Co [1997] PNLR 295 (EWCA) Wilkie v Gordian Runoff Ltd [2005] HCA 17; 221 CLR 522 J Edelman, McGregor on Damages (20th ed, Thomson Reuters, 2018) JD Heydon, The Restraint of Trade Doctrine (4th ed, LexisNexis Butterworths, 2018)