Pathfinder Systems Australia Pty Ltd v Austact Pty Ltd [2006] NSWSC 892

New South Wales Supreme Court

CITATION : Pathfinder Systems Australia Pty Ltd v Austact Pty Ltd [2006] NSWSC 892

HEARING DATE(S) : 23 August 2006

JUDGMENT DATE : 23 August 2006

JURISDICTION : Equity Division

JUDGMENT OF : Palmer J

EX TEMPORE JUDGMENT DATE : 08/23/2006

DECISION : Notice of Motion dismissed.

CATCHWORDS : RESTRAINT OF TRADE – INTERLOCUTORY INJUNCTION – whether plaintiff showed serious question to be tried that former employee using confidential information to solicit customers of plaintiff.

CASES CITED : Wessex Dairies Ltd v Smith [1935] 2 KB 80

Pathfinder Systems Australia Pty Ltd – Plaintiff PARTIES : Austact Pty Ltd – First Defendant Ronald Frederick Walters – Second Defendant

FILE NUMBER(S) : SC 4329/06

COUNSEL : Ms M. Fraser – Plaintiff L.V. Gyles – Defendants

SOLICITORS : Ledlin Partners – Plaintiff David Hand – Defendants

1 By Notice of Motion served on short notice, the Plaintiff seeks two interlocutory injunctions against the Defendants. The First Defendant is a company which employs the Second Defendant, Mr Walters, in a business which is competitive with the business of the Plaintiff. Mr Walters was, until fairly recently, an employee of the Plaintiff who was engaged in the task, amongst other things, of preparing quotations given by the Plaintiff to potential customers. 2 The Plaintiff and Mr Walters entered into a contract of employment in October 2004 which contains a clause in which Mr Walters undertakes to keep confidential any: "… confidential information concerning the business, the financial arrangements, the intellectual property or position of the Plaintiff, or any dealings, transactions or affairs of the business of the Plaintiff, or of any customers of the Plaintiff."