Breedon v Oosthuizen [2023] NSWSC 859

Supreme Court New South Wales

Medium Neutral Citation: Breedon v Oosthuizen [2023] NSWSC 859 Hearing dates: 30 June 2023 Date of orders: 30 June 2023 Decision date: 24 July 2023 Jurisdiction: Equity - Duty List Before: Meek J Decision: Interlocutory restraining orders made against first and second defendants Catchwords: RESTRAINT OF TRADE — Partnership agreement — Application for interlocutory injunction — Consideration of the principles regarding restraint of solicitation and restraint on competition — Where the interest sought to be protected by the restraint is the partnership's customer connection with the client, the reasonableness of the duration of the restraint will be assessed by considering the time taken to sever the partner's connection with the customer in question including giving weight to the period the parties themselves have selected — Reasonableness of a non-competition clause is also assessed by reference to the adequacy of the non-solicitation clause PRACTICE — Appearance — Procedure — Representation of defendant company by director — Uniform Civil Procedure Rules 2005 (NSW) rr 7.1(2), 7.2(1)&(2) considered INJUNCTIONS — Interlocutory injunctions — Discussion of principles in relation to the approach of the Court regarding the requirements in respect of finding a prima facie case for relief — The Court has regard to the circumstances prevailing at the hearing of the application for relief — Consideration of principles regarding whether the inconvenience or injury which the plaintiff would be likely to suffer if an injunction were refused outweighs or is outweighed by the injury which the defendant would suffer if an injunction is granted CIVIL PROCEDURE — Suppression and non-publication orders — Suppression order made prohibiting disclosure of information in confidential exhibit in respect of client lists Legislation Cited: Civil Procedure Act 2005 (NSW) Court Suppression and Non-publication Orders Act 2010 (NSW) Evidence Act 1995 (NSW) Restraints of Trade Act 1976 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: A-Civil Aust Pty Ltd v Ceerose Pty Ltd [2023] NSWCA 144 Adamson v New South Wales Rugby League Ltd (1991) 27 FCR 535 Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd (1973) 133 CLR 288; [1973] HCA 50 Attorney-General (Cth) v Adelaide Steamship Co Ltd [1913] AC 781 Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57; [2006] HCA 46 Bauskis v Liew [2013] NSWCA 297 Beecham Group Ltd v Bristol Laboratories Pty Ltd (1968) 118 CLR 618; [1968] HCA 1 Birdanco Nominees Pty Ltd v Money (2012) 36 VR 341; [2012] VSCA 64 Buckley v Tutty (1971) 125 CLR 353; [1971] HCA 71 Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9; [2006] NSWSC 717 Cardile v LED Builders Pty Ltd (1999) 198 CLR 380; [1999] HCA 18 Dewes v Fitch [1920] 2 Ch 159 Geraghty v Minter (1979) 142 CLR 177; [1979] HCA 42 Gilford Motor Co Ltd v Horne [1933] Ch 935 H & R Block Ltd v Sanott [1976] 1 NZLR 213 Hamod v State of New South Wales [2011] NSWCA 375 Harlow Property Consultants Pty Ltd v Byford [2005] NSWSC 658 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 ICT Pty Ltd v Sea Containers Ltd (1995) 39 NSWLR 640 IRAF Pty Ltd v Graham [1982] 1 NSWLR 419 Isaac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343; [2018] NSWCA 163 Jardin and v Metcash Ltd [2011] NSWCA 409; (2011) 285 ALR 677 John Fairfax Publications Pty Limited v Birt [2006] NSWSC 995 Kearney v Crepaldi [2006] NSWSC 23 Koops Martin v Reeves [2006] NSWSC 449 KPW Law Pty Ltd v Patel [2023] NSWSC 617 Lindner v Murdock's Garage (1950) 83 CLR 628; [1950] HCA 48 May v Christodoulou (2011) 80 NSWLR 462; [2011] NSWCA 75 Metcash Ltd v Jardim (No 3) [2010] NSWSC 1096; (2010) 273 ALR 407 Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd [1894] 1 AC 535 North Western Salt Co Ltd v Electrolytic Alkali Co Ltd [1914] AC 461 Prest v Petrodel Resources Ltd [2013] 2 AC 415 Reid v Howard (1993) 31 NSWLR 298 Rouen v Ryan [2001] NSWCA 230 Seaward v Paterson [1897] 1 Ch 545 Shercliff v Engadine Acceptance Corp Pty Ltd [1978] 1 NSWLR 729 Stacks Taree v Marshall (No 2) [2010] NSWSC 77 Trego v Hunt [1896] AC 7 Tullett Prebon (Australia) Pty Ltd v Purcell [2008] NSWSC 852; (2008) 175 IR 414 Woolworths Ltd v Olson [2004] NSWCA 372 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 X v Twitter Inc (2017) 95 NSWLR 301; [2017] NSWSC 1300 Zhu v Treasurer of the State of NSW (2004) 218 CLR 530; [2004] HCA 56 Texts Cited: Heydon, JD, The Restraint of Trade Doctrine (2nd ed, 1999, Butterworths) Heydon, JD, The Restraint of Trade Doctrine (3rd ed, 2008, LexisNexis Butterworths) Heydon, JD, The Restraint of Trade Doctrine (4th ed, 2018, LexisNexis) Category: Procedural rulings Parties: Paul Breedon (First Plaintiff) Jason Yu (Second Plaintiff) Adam Dyson (Third Plaintiff) Simon Alford (Fourth Plaintiff) Charles Oosthuizen (First Defendant) ProYou Audit Pty Ltd (Second Defendant) Representation: Counsel: S Sykes (Plaintiffs)