Otis Elevator Company Pty Limited v John Nolan [2007] NSWSC 593

New South Wales Supreme Court

CITATION : Otis Elevator Company Pty Limited v John Nolan [2007] NSWSC 593 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 22 May, 23 May, 24 May JURISDICTION : Equity Division Duty List

JUDGMENT OF : Brereton J

EX TEMPORE JUDGMENT DATE : 24 May 2007

DECISION : (1) Upon usual undertaking as to damages, Order that until hearing or further order defendant be restrained from publishing, disclosing, using, or reproducing, any confidential information of plaintiff including, in particular, and without limiting the generality of the foregoing, specified material; (2) Upon defendant undertaking to Court that to extent that he retains any confidential information in any form pertaining to affairs of plaintiff he will not use it or disclose it to any person, and upon defendant filing with Court the written undertaking of Kone, and upon defendant further undertaking that until 2 November 2007 he will be employed only in the Modernisation and Tender Repairs Unit of Kone, Order that the balance of the application for interlocutory relief be dismissed; (3) Adjourn proceedings to 30 May 2007 at 10am for mention; (4) Order that costs of interlocutory application be defendant's costs in the proceedings.

CATCHWORDS : RESTRAINT OF TRADE – employer and employee – sales manager – confidential information – reasonableness of 6 month restraint – where employee resigned after only one day – INJUNCTIONS – contractual injunctions – to restrain breach of negative stipulation – whether discretion to decline – factors informing discretion

Attorney-General v BP (Australia) Limited (1964) 83 WN (Pt 1) (NSW) 80 Aussie Home Loans v X Inc Services [2005] NSWSC 285 Australian Broadcasting Corporation v O'Neill [2006] HCA 46 Bowes v Law (1870) LR 9 Eq 636 Cactus Imaging Pty Limited v Peters [2006] NSWSC 717 Dalysmith Corporation (Aust) Pty Limited v Cray Personnel Pty Limited (NSWSC, Young J, 14 April 1997, unreported, BC9701250) Doherty v Allman (1878) 3 App Cas 709 Harrison v Good (1871) LR 11 Eq 338 John Fairfax Publications Pty Limited v Birt [2006] NSWSC 995 CASES CITED : Kolback Securities Ltd v Epoch Mining NL (1987) 8 NSWLR 533 Kone Elevators Pty Limited v McNay (NSWSC, Young J, 10 March 1997, unreported) Kone Elevators Pty Limited v McNay (1997) ATPR 41-564 Leader v Moody (1875) LR 20 Eq 145 Maitland Main Collieries Pty Ltd v Hunter Valley Coal Corporation Pty Limited [2006] NSWCA 258 RBM Plastic Extrusions Pty Limited v Diaz [2006] NSWSC 1332 Sharp v Harrison [1922] 1 Ch 502 Wood v Corrigan (1928) 28 SR(NSW) 492 Woolworths Ltd v Olson [2004] NSWCA 372 Meagher, Gummow & Lehane, Equity: Doctrines and Remedies (4th ed) Spry, Equitable Remedies (5th ed)