Portal Software v Bodsworth [2005] NSWSC 1179

New South Wales Supreme Court

Portal Software v Bodsworth [2005] NSWSC 1179 CITATION : This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 17-19, 21 October 2005

JUDGMENT DATE : 22 November 2005

JUDGMENT OF : Brereton J

DECISION : Injunction granted.

CATCHWORDS : RESTRAINT OF TRADE – breach of confidence – trade secrets – confidential information – contract of employment – employee bound by contract for a period of six months from employee's departure date within the States and Territories of Australia – whether the restraint is excessive, unreasonable and void – whether the restraint of trade is contrary to public policy and void or is justified by the special circumstances of the particular case – whether the restriction is reasonable having regard to the interests of the parties concerned – where restraint would prohibit the defendant from visiting, contacting or dealing with any former client during the relevant period of restraint – validity of restraint is judged at the time at which the contract is made – from what date does the restraint run – whether last day of employment was last day the defendant was required to work for the employer – whether "last day of employment" was the "departure date" of the defendant – whether the employer, by excusing the defendant from further attendance, accelerated the end date of the defendant's employment – no payment in lieu of notice – restraint clause is triggered by termination of employment not by cessation of attendance – restraints are reasonable for the protection of plaintiff's confidential information, and not unreasonable in the interests of the public – unnecessary to resort to the Restraints of Trade Act – no warrant to extend the contractual restraint beyond the term on which the parties agreed.