TP ICAP Management Services (Australia) Pty Ltd v Bradley Howell; GFI Australia Pty Ltd v Matthew Cotton [2021] NSWSC 656

Supreme Court New South Wales

Medium Neutral Citation: TP ICAP Management Services (Australia) Pty Ltd v Bradley Howell; GFI Australia Pty Ltd v Matthew Cotton [2021] NSWSC 656 Hearing dates: 12-14, 19-22, 26-29 April, 3-4, 6, 11-13 May 2021 Decision date: 09 June 2021 Jurisdiction: Equity - Commercial List Before: Hammerschlag J Decision: Separate questions answered: see under paragraph [413]. Catchwords: EMPLOYMENT LAW – Contracts of employment – EQUITY – Fiduciary duties – CORPORATIONS LAW – Corporations Act 2001 (Cth) ss 181(1), 182(1), and 183(1) – Duties of officers and employees – COMPETITION AND CONSUMER LAW – Australian Consumer Law ss 18 and 31 – TORT – Interference with contractual relations – REMEDIES – Availability of declarations – One company (the first company) entices employees of a competitor company (the second company) to leave and join the first company – Some of the employees recant and return – Allegations that two individuals employed by the second company who became employed by the first company breached their contracts of employment, fiduciary duties, and statutory obligations by assisting the first company in its recruitment campaign – Allegations that the first company induced them to breach or knowingly participated in their breaches – First company sues the employees who recanted for breach of contract – The six employees who recanted allege that one of the two individuals misled them into entering employment agreements with the first company – The six employees who recanted seek orders for rescission of their employment contracts – HELD – Individuals breached their employment agreements and equitable duties and one of them his statutory duties – HELD – Employment contract of one individual validly terminated for breach by second company – HELD – Declaratory relief refused as against the other individual – HELD – Interference with contractual relations and participation in breaches not established – HELD – Six employees who recanted not entitled to relief – HELD – Employment contracts not to be rescinded – HELD – The six employees who recanted breached their employment contracts to the first company Legislation Cited: Competition and Consumer Act 2010 (Cth) Corporations Act 2001 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Category: Principal judgment Parties: Proceedings 2018/148259 TP ICAP Management Services (Australia) Pty Ltd – First Plaintiff ICAP Brokers Pty Limited – Second Plaintiff Bradley Howell – First Defendant John Kalaf – Second Defendant GFI Australia Pty Ltd – Third Defendant