John Fairfax Publications Pty Limited v Birt & 6 ors [2006] NSWSC 995

New South Wales Supreme Court

CITATION : John Fairfax Publications Pty Limited v Birt & 6 ors [2006] NSWSC 995 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 11/09/06; 12/09/06

JUDGMENT DATE : 25 September 2006

JURISDICTION : Equity Division

JUDGMENT OF : Brereton J

DECISION : Some restraints prima facie valid; interlocutory injunctions granted: see para 59

CATCHWORDS : RESTRAINT OF TRADE – Employer and employee – Newspaper advertising manager – construction – business "in competition with" that of employer - validity – legitimate protectable interests - confidential information – where employee has knowledge of customers and discount arrangements and information about circulation and distribution – where employer is not shown to have taken measures to assert or maintain confidentiality of some such information during employment - knowledge of commercial strategy – customer connection – where employee has little customer contact - staff connection – where employee is in leadership role - reasonableness – Restraints of Trade Act, s 4(1) – time for determination of reasonableness - INJUNCTIONS – interlocutory injunctions – where interlocutory determination will practically determine outcome of case – balance of convenience

LEGISLATION CITED : Restraints of Trade Act, 1976 (NSW) s 4

Adamson v West Perth Football Club (1979) 39 FLR 199 Arthur Murray Dance Studios of Cleveland Inc v Witter 105 NE (2d) 685 (Ohio, 1951) Cactus Imaging Pty Limited v Peters [2006] NSWSC 717 Commercial Plastic Limited v Vincent [1964] 3 WLR 820 Coote v Sproule (1929) 29 SR (NSW) 578 Corrs Pavey Whiting and Byrne v Collector of Customs (Vic) (1987) 14 FCR 434 Curro v Beyond Productions Pty Ltd (1993) 30 NSWLR 337 Dalysmith Corporation (Aust) Pty Ltd v Cray Personnel Pty Ltd (NSWSC, Young J, 14 April 1997, unreported, BC9701250) Dewes v Fitch [1920] 2 Ch 159 Geraghty v Minter (1979) 142 CLR 177 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 Hitchcock v Coker (1837) 6 Ad & El 438; [1835-42] All ER Rep 452 Kolback Securities Limited v Epoch Mining NL (1987) 8 NSWLR 533 Kone Elevators Pty Ltd v McNay (NSWSC, Young J, 10 March 1997, unreported) Kone Elevators Pty Limited v McNay (1997) ATPR 41-564 Koops Martin Financial Services Pty Ltd v Reeves [2006] NSWSC 449 CASES CITED : Lindner v Murdock's Garage (1950) 83 CLR 628 Littlewoods Organisation Limited v Harris [1977] 1 WLR 1472 Mason v Provident Clothing & Supply Co Limited [1913] AC 724 Nordenfelt v Maxim Nordenfelt Guns & Ammunition [1894] AC 535 Orton v Melman [1981] 1 NSWLR 583 Portal Software v Bodsworth [2005] NSWSC 631 (White J) Portal Software Pty Ltd v Bodsworth [2005] NSWSC 1179 Reeves v Koops Martin Financial Services Pty Limited [2006] NSWCA 221 Rosewood Advertising Pty Limited v Hannah Marketing Pty Limited [2000] NSWSC 1034 Saltman Engineering Co Limited v Campbell Engineering Co (1948) 65 RPC 203 Tank Lining Corp v Dunlop Industrial Pty Ltd (1982) 140 DLR (3d) 659 Twenty-First Australia Inc v Shade (NSWSC, Young J, 31 July 1998, unreported), BC9803667 Vandervell Products Ltd v McLeod [1956] RPC 185 Woolworths Limited v Olson [2004] NSWCA 372 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 CJ Farwell, Covenants in Restraint of Trade as between Employer & Employee (1928) 44 LQR 66 J D Heydon, The Restraint of Trade Doctrine, 2nd Ed.