Brightman v Lamson Paragon Limited [1914] HCA 90

BeBe

ei

18 C.L.R.] OF AUSTRALIA

(HIGH COURT OF AUSTRALIA.]

BRIGHTMAN . . ' . . APPELLANT; DEFENDANT, AND LAMSON PARAGON LIMITED . . . RESPONDENTS. PLAINTIFFS,

Restraint of Trrade—Agreement between employer and employee—Reasonableness.

The defendant upon being appointed general manager of the plaintiff Company, which carried on the business of manufacturing and selling certain goods in Australia and selling them in New Zealand also, agreed that he would not during the period of ten years after the termination of his employ-

ment be in any way concerned in any similar business in Australia or New Zealand.

Held, on the evidence, that the agreement was not unreasonable either as to area or duration.

Decision of Rich J. affirmed.

AppEAL from Rich J.

An action was brought in the High Court by Lamson Paragon Ltd., a company incorporated in Victoria, against John Bright- man, a resident in New South Wales, in which the plaintiffs alleged that on 7th December 1909 the defendant, who had been their general manager from 1903 to 1909, agreed (inter alia) as follows :—" The said John Brightman shall not for the term of ten years after the termination of this agreement or any extension thereof if and so long as the Company or its assigns shall be carrying on business in Australia or New Zealand during such period either by himself or in partnership or in connection with or as the agent or employee of any other person or persons company corporation or other body carry on or be concerned either directly or indirectly within any of the States of Australia

H.C. oF A. 1913. =

SypDNeEy, July 1.

Rich J.

1914. SYDNEY, Aug. 10, 11.

iffith O.J., Isaacs and Gavan Duffy JJ.

H.C. oF A.

1914. Ln BricHTMAN v Lampson ParaGon Lrp.

HIGH COURT [

or New Zealand in the carrying on of the business of mar facturers or vendors of cash or other check books used for purpose whatsoever and for any breach of this clause will on demand pay to the Company the sum of £500 as and by way of liquidated damages without prejudice to the right of the Con pany to restrain the said John Brightman or cause him to restrained from each and every such breach thereof." plaintiffs also alleged that the defendant continued in the employment under such agreement until 22nd August 1911, when he resigned, and that he entered the employment of Joh Sands Ltd. in Sydney, New South Wales, who carried on, were concerned directly or indirectly within the States of Aus tralia and New Zealand in carrying on, the business of manufac turers or vendors of cash or other check books. The plaintifi claimed an injunction to restrain the defendant from carrying on, or being concerned directly or indirectly within the States of Australia and New Zealand in carrying on, the business of manufacturers or vendors of cash or other sale books, and £500 damages in respect of breaches of the agreement.