Russ Australia v Benny [2006] NSWSC 1118

New South Wales Supreme Court

CITATION : Russ Australia v Benny [2006] NSWSC 1118

HEARING DATE(S) : 18 & 19 October 2006

JUDGMENT DATE : 19 October 2006

JURISDICTION : Equity

JUDGMENT OF : Campbell J

EX TEMPORE JUDGMENT DATE : 10/19/2006

DECISION : One restraint prima facie valid; interlocutory injunction granted.

CATCHWORDS : RESTRAINT OF TRADE – employer and employee – restrictive covenants going wider than needed for legitimate protection of employer's interests – no particular threat of breach established – application of Restraints of Trade Act 1976 – construction of covenant against soliciting clients – covenant not to work for a competitor – interests capable of supporting such a covenant – how reasonableness of length of restraint determined – INJUNCTIONS – interlocutory injunctions – where interlocutory hearing will for practical purposes decide the rights of the parties – factors relevant to balance of convenience – TORTS – interference with contractual relations

LEGISLATION CITED : Restraints of Trade Act 1976

Buckley v Tutty (1971) 125 CLR 353 C & S Constructions Pty Limited v Dawson (1991) ATPR 41–148 Commercial Union Assurance Co of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Curro v Beyond Productions Pty Limited (1993) 30 NSWLR 337 Fightvision Pty Ltd v Onisforou; Tszyu v Fightvision Pty Ltd (1999) 47 NSWLR 473 Hellman Insurance Brokers v Peterson [2003] NSWSC 242 CASES CITED : IRAF Pty Limited v Graham [1982] 1 NSWLR 419 John Fairfax Publications Pty Limited v Birt [2006] NSWSC 995 Kolback Securities Pty Limited v Epoch Mining NL (1987) 8 NSWLR 533 Koops Martin Financial Services Pty Limited v Dean Reeves [2006] NSWSC 449 Linwar Securities Pty Limited v Savage [2006] NSWSC 786 Orton v Melmann [1981] 1 NSWLR 583 Stenhouse Australia Ltd v Phillips [1974] AC 391 Wright v Gasweld [1991] 22 NSWLR 317