Tyro Payments Ltd v Kounta Pty Ltd [2023] NSWSC 1384

Supreme Court New South Wales

Medium Neutral Citation: Tyro Payments Ltd v Kounta Pty Ltd [2023] NSWSC 1384 Hearing dates: 1, 2 November 2023 Date of orders: 16 November 2023 Decision date: 16 November 2023 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Injunction granted. Catchwords: RESTRAINT OF TRADE — commercial contract — plaintiff provides merchants with EFTPOS facility to accept payments by card — defendant provides merchants with point of sale (POS) terminals and software — plaintiff appoints defendant as agent — defendant keen to develop and provide similar services to merchants — 3 year contract includes 6 month exclusive dealing period in respect of defendant's pursuit of those ambitions — restraint of trade clause prevented defendant from soliciting plaintiff's merchants for 12 months — exclusive dealing period expires — defendant becomes a 'payment facilitator' and solicits plaintiff's merchants — whether defendant's services fall within restraint clause — Restraint of Trade Act 1976 (NSW) section 4 considered — principles at [116]-[119] — onus of proving restraint is reasonable or against public policy — restraint of trade valid – injunction granted. Legislation Cited: Corporations Act 2001 (Cth) s 766B(4) Restraints of Trade Act 1976 (NSW) s 4 Cases Cited: Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd [1973] HCA 40; (1973) 133 CLR 288 Attorney-General (Cth) v Adelaide Steamship Co Ltd [1913] AC 781 Belflora Pty Ltd v Vinflora Pty Ltd (2021) 106 NSWLR 67; [2021] NSWCA 178 Blatch v Archer (1774) 1 Cowp 63 Cherry v Steele-Park [2017] NSWCA 295; (2017) 96 NSWLR 548 Creak v Ford Motor Company of Australia Ltd [2023] NSWCA 217 Dr Angel-Honnibal v Idameneo (No 123) Pty Ltd [2003] NSWCA 263 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 HiTech Group Australia Ltd v Riachi [2021] NSWSC 1212 Hospital Products v United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 Isaac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343 Kingdom Animalia LLC v Mecca Brands Pty Ltd [2023] VSCA 55; (2023) 170 IPR 399 Koops Martin v Dean [2006] NSWSC 449 Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd [2023] HCA 6 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; (2001) 210 CLR 181 Orleans Investment Pty Ltd v Mindshare Communications Ltd [2009] NSWCA 40 Shelfer v City of London Electric Lighting Co [1895] 1 Ch 287 Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359 Sidameneo (No 456) Pty Ltd v Alexander [2011] NSWCA 418 Category: Principal judgment Parties: Tyro Payments Ltd (Plaintiff) Kounta Pty Ltd (Defendant) Representation: Counsel: Mr D Thomas SC / Mr H Atkin (Plaintiff) Mr JC Giles SC / Ms AE Munro / Ms JT Buncle (Defendant)