Miles v Genesys Wealth Advisers Limited [2009] NSWCA 25

Appeal Outcome: Special leave dismissed with costs by the High Court, 31 July 2009 s69/2009

New South Wales Court of Appeal

CITATION: Miles v Genesys Wealth Advisers Limited [2009] NSWCA 25

HEARING DATE(S): 10 December 2008, 11 December 2008

JUDGMENT DATE: 24 February 2009

JUDGMENT OF: Hodgson JA at 1; Basten JA at 54; Handley AJA at 55

(1) Order 1 below varied by substituting for par a(ii) thereof the following: (ii) in any capacity or role, a business conducted or carried on or to be conducted or carried on within Australia which is competitive with the business of the Plaintiff and which involves the provision of financial products or services to retail clients by the agency of financial planning firms or practices. DECISION: (2) Notes 4 and 5 below deleted. (3) Appeal otherwise dismissed. (4) Appellant to pay respondent's costs of the appeal.

CATCHWORDS: CONTRACTS – Employment – Equity – Restraint of Trade – Covenant by employee on termination not to engage in identified business and not to deal with clients for 30 months – Proscribed business identified by reference to potentiality for use of confidential information to employer's detriment – Whether confidential information needed to be identified with precision – Whether "clients" included certain agents of the employer – Whether period of restraints excessive.

LEGISLATION CITED: Restraints of Trade Act 1976 s 4

CATEGORY: Principal judgment

Australian Retail Wholesalers v Stafford [2007] NSWSC 572; (2007) ATPR 42-168 Beak v Robson [1943] AC 352 Connors Bros Ltd v Connors [1940] 4 All ER 179 PC DalySmith Corporation (Australia) Pty Limited v Cray Personnel Pty Limited (Supreme Court of New South Wales, Young J, 14 April 1997, unreported) Del Casale v Artedomus (Australia) Pty Limited [2007] NSWCA 172; (2007) 73 IPR 326 DTR Nominees Pty Limited v Mona Homes Pty Limited (1978) 138 CLR 423 GlaxoSmithKline Australia Pty Ltd (GSK) v Ritchie [2008] VSC 164; (2008) 77 IPR 306 Haynes v Doman [1899] 2 Ch 13 at 25-26 Herbert Morris Limited v Saxelby [1916] 1 AC 688 Higgs v Olivier [1952] Ch 311 CA John Fairfax Publications v Birt [2006] NSWSC 995 CASES CITED: Kone Elevators Pty Limited v McNay (No 2) (1997) Aust Contract R 90-080 Koops Martin v Dean Reeves [2006] NSWSC 449 Littlewoods Organisation Limited v Harris [1977] 1 WLR 1472 Mason v Provident Clothing and Supply Co Limited [1913] AC 724 O'Brien v Komesaroff [1982] HCA 33; (1982) 150 CLR 310 Peppers Hotel Management Pty Limited v Hotel Capital Partners Limited [2004] NSWCA 114 Pioneer Concrete Services Limited v Galli [1985] VR 675 Portal Software v Bodsworth [2005] NSWSC 1179 Sir W C Leng & Co v Andrews [1909] 1 Ch 763 Stenhouse Ltd v Phillips [1974] AC 391 Woolworths Limited v Olson [2004] NSWCA 372 Wright v Gasweld Pty Limited (1991) 22 NSWLR 317