DXC Eclipse Pty Ltd ACN 051 758 199 v Wildsmith [2022] NSWSC 512

Supreme Court New South Wales

Medium Neutral Citation: DXC Eclipse Pty Ltd ACN 051 758 199 v Wildsmith [2022] NSWSC 512 Hearing dates: 12 & 13 April 2022 Date of orders: 2 May 2022 Decision date: 04 May 2022 Jurisdiction: Equity - Duty List Before: Slattery J Decision: Interlocutory injunction granted. Costs reserved. Catchwords: CONTRACT – restraint of trade – sale of business – 2018 contract for the sale of business supporting certain Microsoft software products – vendors give covenant not to compete for a period of seven years from the date of contract – cascading covenants for lesser terms also agreed – covenants apply to markets defined in the schedule to the agreement purchaser acquires and conducts the business – in December 2021 the vendor launches what the purchaser claims is a competing business – purchaser applies for an interlocutory injunction restraining the vendor from conducting a competing business – vendor contends the business is not a competing business and is not caught by the restraint – whether there is a serious question to be tried – what is the balance of convenience. Legislation Cited: Supreme Court Act 1970, s 66(4) Restraints of Trade Act 1976, s 4 Cases Cited: Attorney-General (Commonwealth) v Adelaide Steamship Co [1913] AC 781 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57 Beecham Group Ltd v Bristol Laboratories Pty Ltd (1968) 118 CLR 618 Beese (Managers of Kimpton Church of England Primary School) v Woodhouse [1970] 1 All ER 769 British Reinforced Concrete Engineering Co Ltd v Schelff [1921] 2 Ch 563 Cerilian Pty Ltd v Fraser [2008] NSWSC 1016 Employsure Ltd v McMurchy [2021] NSWSC 1179 Francome v Mirror Group Newspapers Ltd [1984] 1 WLR 892 Freedom Finance Accounting Pty Ltd v Goldstein [2017] VSC 179 HiTech Group Australia Ltd v Riachi [2021] NSWSC 1212 Issac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343 IRAF Pty Ltd v Graham [1982] 1 NSWLR 419 McCarty v North Sydney Municipal Council (1918) 18 SR (NSW) 210 Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd [1894] AC 535 Northwestern Salt Co Ltd v Electrolytic Alkali Co Ltd [1914] AC 461 Ronbar Enterprises Ltd v Green [1954] 1 WLR 815 TW Cronin Shoe Pty Ltd v Cronin [1929] VLR 244 Texts Cited: JD Heydon, MJ Leeming and PG Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed, 2014, LexisNexis Butterworths) JD Heydon, The Restraint of Trade Doctrine (4th ed, 2018, LexisNexis Butterworths, Australia) Category: Procedural rulings Parties: Plaintiff: DXC Eclipse Pty Ltd ACN 051 758 199 First Defendant: Martin Wildsmith Second Defendant: On-Key Consulting Pty Ltd ACN 147 306 250 Representation: Counsel: Plaintiff: Ms A. Spies (12 April); Mr I. Neil SC with Mr C. Parkin (13 April) Defendants: Mr D. Mahendra