PRP Diagnostic Imaging Pty Limited (in its capacity as trustee for the Pittwater Radiology Trust) & Ors v Pittwater Radiology Pty Limited [2008] NSWSC 701

New South Wales Supreme Court

CITATION : PRP Diagnostic Imaging Pty Limited (in its capacity as trustee for the Pittwater Radiology Trust) & Ors v Pittwater Radiology Pty Limited [2008] NSWSC 701

HEARING DATE(S) : 24/06/08 - 27/06/08

JUDGMENT DATE : 14 July 2008

JURISDICTION : Equity Division Commercial List

JUDGMENT OF : Einstein J

DECISION : Proceedings to be dismissed.

CATCHWORDS : CONTRACT - joint venture conducting practice of Radiology and related services at 34 clinics - restraint period applies where a partner leaves the business - applicability of restraint period where the Trust terminates the agreement on notice - construction of 'the Business' - restraint binding on Trust not binding on Partnership or partners - admissibility of prior contractual arrangements - unreasonable restraint of trade - construction of 'competitive business' - express and implied duties of good faith - agreement to cooperate constitutes an agreement to agree and is unenforceable

CATEGORY : Principal judgment

Alcatel Australia Ltd v Scarcella and others (1998) 44 NSWLR 349 Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Burger King Corp v Hungry Jack's Pty Ltd [2001] NSWCA 187 Central Exchange Ltd v Anaconda Nickel Ltd (2002) 26 WAR 33 Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd (1991) 24 NSWLR 1 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896; [1998] 1 All ER 98 Foscote in Manifest Shipping Co Ltd v Uni-Polaris Shipping Co Ltd [2001] 2 WLR 170 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 Meehan v Jones (1982) 149 CLR 571 CASES CITED : Overlook v Foxtel [2002] NSWSC 17 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Peppers Hotel Management Pty Ltd v Hotel Capital Partners Ltd [2004] NSWCA 114 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 River Wear Commissioners v Adamson (1877) 2 App Cas 743 Ryan v Textile Clothing & Footware Union of Australia [1996] 2 VR 235 Service Station Association Ltd v Berg Bennett & Associates Pty Ltd (1993) 45 FCR 84 Spunwill Pty Ltd v BAB Pty Ltd (1994) 36 NSWLR 290 State of New South Wales v Banabelle Electrical Pty Ltd (2002) 54 NSWLR 503 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 Tymshare Inc v Covell 727 F2d 1145 (1984) Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 Walford v Miles [1992] 2 AC 128 Zhu v Treasurer of the State of NSW (2005) 218 CLR 530