Janala Pty Limited v Hardaker (No 3) [2023] NSWSC 446

Supreme Court New South Wales

Medium Neutral Citation: Janala Pty Limited v Hardaker (No 3) [2023] NSWSC 446 Hearing dates: 5-7 October 2022 Date of orders: 28 April 2023 Decision date: 02 May 2023 Jurisdiction: Equity Before: Richmond J Decision: The restraints of trade contained in the relevant contract and binding undertaking are not void as unlawful restraints of trade. The length of the non‑compete restraints in the undertaking should be read down from 12 months to six months. Catchwords: COMMERCE — restraint of trade — validity and reasonableness — length and scope of restraint — whether restraints void — whether length of restraint reasonable Legislation Cited: Corporations Act 2001 (Cth) ss 183, 184 Restraints of Trade Act 1976 (NSW) s 4 Cases Cited: Beaton v McDivitt (1987) 13 NSWLR 162 Belflora Pty Ltd v Vinflora Pty Ltd (2021) 106 NSWLR 67; [2021] NSWCA 178 Buckley v Tutty (1971) 125 CLR 353; [1971] HCA 71 Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9; [2006] NSWSC 717 Del Casale v Artedomus (Aust) Pty Ltd [2007] NSWCA 172; 165 IR 148 Dunlop v Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847 Electroboard Administration Pty Ltd v O'Brien [1999] NSWCA 452 Electroboard Administration Pty Ltd v O'Brien (Supreme Court (NSW), Cohen J, 13 March 1998, unrep) Emeco International Pty Ltd v O'Shea (No 2) [2012] WASC 348; 225 IR 423 Employsure Ltd v McMurchy; Employsure Ltd v Kumaran [2021] NSWSC 1179 Fullerton v Provincial Bank of Ireland [1903] AC 309 Hanna v OAMPS Insurance Brokers Ltd [2010] NSWCA 267; 202 IR 420 Harlow Property Consultants Pty Ltd v Byford [2005] NSWSC 658 In re Wyvern Developments Ltd [1974] 1 WLR 1097 Informax International Pty Ltd v Clarius Group Ltd (2012) 207 FCR 298; [2012] FCAFC 165 Isaac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343; [2018] NSWCA 163 Janala Pty Ltd v Hardaker [2022] NSWSC 822 Jardin v Metcash Ltd [2011] NSWCA 409; 285 ALR 677 John Fairfax Publications Pty Ltd v Birt [2006] NSWSC 995; 58 AILR 200-270 Lindner v Murdock's Garage (1950) 83 CLR 628; [1950] HCA 48 Mason v Provident Clothing and Supply Co Ltd [1913] AC 724 McMurchy v Employsure Pty Ltd [2022] NSWCA 201 Mid-City Skin Cancer & Laser Centre Pty Ltd v Zahedi-Anarak (2006) 67 NSWLR 569; [2006] NSWSC 844 Official Trustee in Bankruptcy v Lopatinsky (2003) 129 FCR 234; [2003] FCAFC 109 Pathfinder Systems Australia Pty Ltd v Austact Pty Ltd [2006] NSWSC 892 Pearson v HRX Holdings Pty Ltd (2012) 205 FCR 187; [2012] FCAFC 111 Provida Pty Ltd v Sharpe [2012] NSWSC 1041 Stacks Taree v Marshall (No 2) [2010] NSWSC 77 Stenhouse Australia Ltd v Phillips [1974] AC 391 The Alliance Bank Ltd v Broom (1864) 2 DR & SM 289; 62 ER 631 Tullett Prebon (Australia) Pty Ltd v Simon Purcell [2008] NSWSC 852; 175 IR 414 Wigan v Edwards (1973) 47 ALJR 586 Woolworths Ltd v Olson [2004] NSWCA 372 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 Texts Cited: H G Beale, Chitty on Contracts (34th ed, 2021, Sweet & Maxwell) J D Heydon, Heydon on Contract (2019, LawBook Co) J D Heydon, M J Leeming & P G Turner, Meagher Gummow & Lehane's Equity Doctrines & Remedies (5th ed, 2014, LexisNexis) Category: Principal judgment Parties: Janala Pty Limited (Plaintiff) Lonnie Hardaker (First Defendant) Freight Solution Services Pty Ltd (Second Defendant) Representation: Counsel: Mr J Fernon SC, Mr A Vial (Plaintiff) Mr P Braham SC, Mr D Reynolds (First and Second Defendant)