Sheridan v Tavener [1999] NFSC 5

SUPREME COURT OF NORFOLK ISLAND

Sheridan v Tavener [1999] NFSC 5 RESTRAINT OF TRADE – sale of business – construction of covenant – reasonableness of restraint – whether breach occurred – whether business of a "similar kind". WORDS & PHRASES – "similar kind".

Heydon, Restraint of Trade, 2nd ed. Macquarie Dictionary, 2nd ed. Clarke v Newland [1991] 1 All ER 397 – referred to Drew v Guy [1894] 3 Ch 25 - applied Butt v Long (1953) 88 CLR 476 - considered Geraghty v Minter (1979) 142 CLR 177 - cited Peters (W.A.) Ltd v Petersville Ltd [1999] FCA 1245 - considered C & S Constructions Pty Ltd v Dawson (1991) ATPR 41 – 148 – considered Nordenfelt v Maxim-Nordenfelt Guns & Ammunition Co Ltd (1894) AC 535 - considered T.W. Cronin Shoe Pty Ltd v Cronin (1929) VLR 244 - applied Lloyd's Ships Holdings Pty Ltd v Davros Pty Ltd (1987) 17 FCR 505 – applied Anchor Electric Co v Hawkes 50 NE 509 (SC Mass, 1898) - considered Fitz v Iles [1893] 1 Ch 77 - applied ROBERT IAN SHERIDAN AND TRACY ANN SHERIDAN v JAMES MAURICE TAVENER AND ALEXIS LOUISE TAVENER

SC 6 of 1999 CORAM: BEAUMONT CJ DATE: 2 NOVEMBER 1999

IN THE SUPREME COURT ) ) SC 6 of 1999 NORFOLK ISLAND ) BETWEEN: ROBERT IAN SHERIDAN First Plaintiff AND TRACY ANN SHERIDAN Second Plaintiff AND: JAMES MAURICE TAVENER First Defendant AND ALEXIS LOUISE TAVENER Second Defendant

ORDERS BEAUMONT CJ: 2 NOVEMBER 1999

THE COURT ORDERS THAT: 1. Declare that cl 6 of the agreement for sale between the defendants as vendors and the plaintiffs as purchasers, dated 8 January 1999, is valid and enforceable in accordance with its terms. 2. Order that the defendants be restrained for a period of five years from 8 January 1999 from owning, participating or being employed in, operating, engaging in (directly or indirectly, whether on the defendants' own account or in partnership or as shareholders in a company or by joint venture) a four-wheel drive tour business in Norfolk Island, or a business of a similar kind. 3. Reserve costs. Liberty to apply for costs by written submissions filed and served within 21 days. 4. Stand over the plaintiffs' claim for any further relief for directions at a date to be fixed.