Ryan v Rouen [2000] NSWSC 468

New South Wales Supreme Court

CITATION : Ryan v Rouen [2000] NSWSC 468 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 4517/98 HEARING DATE(S) : 14 & 20 April 2000 JUDGMENT DATE : 1 June 2000

PARTIES : Peter Kevin Ryan (P) John Patrick Rouen, Anthony Graham Edgar, Ian Francis Dwyer, Jennifer Ann Platt and Margaret Patricia Bray (D) JUDGMENT OF : Young J

COUNSEL : B A Coles QC and M Ashhurst (P) I G Harrison SC (D) SOLICITORS : Kemp Strang (P) Gordon A Salier (D) CATCHWORDS : EQUITY [87]- Relief against penalties and forfeitures- Partnership deed permitting confiscation of capital if partner reasonably suspected of breach- Whether penalty PARTNERSHIP [26]- Property of partnership- Goodwill- Former partner abstracting "his clients" when quitting firm TRADE & COMMERCE [24]- Restraint of trade- Partnership agreement- Not to work in firm to which a client of former firm in fact resorts- Too wide. LEGISLATION CITED : Restraints of Trade Act 1976, s 4(1) Alcock v Robb (1978) 2 BPR 9,625 AMEV-UDC Finance Ltd v Austin (1986) 162 CLR 170 Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd (No 2) (1975) 133 CLR 331 Arundel v Bell (1883) 52 LJ Ch 537 Brendon Pty Ltd v Russell (1994) 11 WAR 280 Bridge v Deacons [1984] AC 705 Brooks v Burns Philp Trustee Co (1969) 121 CLR 432 Brown v Cunich (1974) 16 ATPR (Digest) 46-117 Brown v Wyman [1975] Qd R 408 A Buckle & Sons Ltd v McAllister (1986) 4 NSWLR 426 Bull v Pitney-Bowes Ltd [1967] 1 WLR 273 Dalysmith Corporation (Aust) Pty Ltd v Cray Personnel Pty Ltd (Young J 14 April 1997) Dunlop Pneumatic Tyre Co Ltd v New Garage & Motor Co Ltd [1915] AC 79 Elsley v JG Collins Insurance Agencies Ltd (1978) 83 DLR (3d) 1 Ernst & Young v Stewart (1993) 79 BCLR (2d) 70 Esso Petroleum Co Ltd v Harper's Garage (Stourport) Ltd [1968] AC 269 Federal Commissioner of Taxation v Williamson (1943) 67 CLR 561 Fitch v Dewes [1921] 2 AC 158 Geraghty v Minter (1979) 142 CLR 177 Gray v Sladden & Stewart [1935] NZLR 35 Halsall v Brizell [1957] Ch 169 Home Counties Dairies Ltd v Skilton [1970] 1 All ER 1227 Inland Revenue Commissioners v Muller & Co's Margarine Ltd [1901] AC 217 CASES CITED : Kenneth Allison Ltd v AE Limehouse & Co [1992] 2 AC 105 Knogo Corp v Halligan (1984) 6 ATPR 40-060 Kone Elevators Pty Ltd v McNay (No 2) (1997) 19 ATPR 41-564 Re Lazarus (1940) 11 ABC 249 Lucas v Mok (1983) 9 Fam LR 180 McFadden v Commissioner of Stamp Duties (1980) 11 ATR 1 Marshall v NM Financial Management Ltd [1995] 1 WLR 1461 Mouflet v Cole (1872) LR 8 Ex 32 Muschinski v Dodds (1985) 160 CLR 583 Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co [1894] AC 535 NSW Rutile Mining Co Pty Ltd v Eagle Metal & Industrial Products Pty Ltd (1959) 60 SR (NSW) 495 NSW Small-Bore & Air Rifle Association Inc v Commonwealth (Bryson J 22 July 1994) O'Dea v All States Leasing System (WA) Pty Ltd (1983) 152 CLR 359 Orton v Melman [1981] 1 NSWLR 583 Pascoe-Webbe v Nusuna Pty Ltd (1985) 3 BPR 9620 PC Developments Pty Ltd v Revell (1991) 22 NSWLR 615 Perpetual Executors & Trustees Association of Australia Ltd v Federal Commissioner of Taxation (Thomas' case) (No 2) (1955) 94 CLR 1 Perpetual Trustee Co Ltd v Pacific Coal Co Pty Ltd (1953) 55 SR (NSW) 495 Public Works Commissioner v Hill [1906] AC 368 Rhone v Stephens [1994] 2 AC 310 Saloum v Thomas (1986) 12 CPR (3d) 251 Tito v Waddell (No 2) [1977] Ch 106 Tuit v Australialn Mutual Provident Society [1975] 1 NSWLR 158 Webster v Bosanquet [1912] AC 394 Wyatt v Kreglinger & Fernau [1933] 1 KB 793 DECISION : See para 105