Jardin and Jardim Investments Pty Ltd v Metcash Ltd and Metcash Trading Ltd [2011] NSWCA 409

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Jardin and Jardim Investments Pty Ltd v Metcash Ltd and Metcash Trading Ltd [2011] NSWCA 409 Hearing dates: 1 September 2011 Decision date: 22 December 2011 Before: Campbell JA at [1] Young JA at [39] Meagher JA at [41] Decision: (1) Grant leave to appeal and cross-appeal. (2) Appeal dismissed. (3) Cross-appeal allowed. (4) Set aside Order 4 made by Ball J on 29 September 2010. (5) Order that the appellants pay the respondents' costs of the appeal and of the cross-appeal. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: CONTRACT - interpretation - effect of entry into deed of release on operation of employment agreement - whether employee entitled to terminate by giving three months' notice - whether restraint of trade clause continued to apply - distinction between termination of employment relationship and termination of employment contract EMPLOYMENT- whether restraint of trade clauses reasonable and enforceable REMEDIES - injunctions to enforce covenants in restraint of trade - whether "springboard" doctrine provides basis for injunction beyond period of contractual restraint - basis for injunctive relief against company not bound by covenants APPEAL - practice and procedure - whether leave to appeal required - interpretation of s 101(2)(r)(ii) Supreme Court Act - whether should exercise discretion to grant leave - considerations - whether proceedings moot - whether any question of principle - costs incurred in proceedings below Legislation Cited: Judiciary Act 1903 (Cth) Restraints of Trade Act 1976 Supreme Court Act 1970 Cases Cited: AMACSU v Ergon Energy Corporation Ltd [2005] QCA 351 Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd (1973) 133 CLR 288 Aquaculture Corporation v New Zealand Green Mussel Co Ltd (1985) 5 IPR 353 Arthur Murray Dance Studios of Cleveland Inc v Witter (1952) 105 NE 2d 685 Attorney-General v Observer Ltd [No. 2] [1990] 1 AC 109 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001] HCA 63; (2001) 208 CLR 199 Australian Regional Wholesalers v Stafford [2007] NSWSC 572; (2007) ATPR 42-168 Blackmore v Browne; Kara Kar Holdings Pty Ltd v Blackmore [2011] NSWCA 114 Bonan v Hadgkiss [2007] FCAFC 113; (2007) 160 FCR 29 British Franco Electric Pty Ltd v Dowling Plastics Pty Ltd [1981] 1 NSWLR 448 Buckley v Tutty (1971) 125 CLR 353 Built Interiors Pty Ltd v Three Dinosaurs Pty Ltd [2003] NSWCA 290 Byrne & Frew v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410 Byrnes v Kendle [2011] HCA 26; (2011) 243 CLR 253 Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9 Cardile v LED Builders Pty Ltd [1999] HCA 18; (1999) 198 CLR 380 Carolan v AMF Bowling Pty Ltd [1995] NSWCA 69 Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 24; (1982) 149 CLR 337 Coles v Wood [1981] 1 NSWLR 723 Coshott v Shipton Lodge Cobbitty Pty Ltd [2006] NSWCA 316 Curro v Beyond Productions Pty Ltd (1993) 30 NSWLR 337 Dalgety Wine Estates Pty Ltd v Rizzon (1979) 141 CLR 552 Doherty v Allman & Dowden (1878) 3 App Cas 709 Falamaki v Wollongong City Council [2001] NSWCA 55 Gardner v Dairy Industry Authority of New South Wales (1977) 18 ALR 55 Gilford Motor Co v Horne [1933] Ch 935 Gurr v Robinson (NSW Court of Appeal, 10 February 1986, unreported) Hansen v Slattery Transport (NSW) Pty Ltd [2011] NSWCA 193 Harbrett Pty Ltd v Butler (NSW Court of Appeal, 14 December 1989, unreported) Herbert Morris Ltd v Saxelby [1916] 1 AC 688 Heron v Port Huon Fruit-Growers Co-operative Association Ltd [1922] HCA 20; (1922) 30 CLR 315 Hope Downs Management Services v Hamersley Iron Pty Ltd [1999] FCA 1652 ICT Pty Ltd v Sea Containers Ltd (1995) 39 NSWLR 640 Industrial Rollformers Pty Ltd v Ingersoll-Rand (Australia) Ltd [2001] NSWCA 111 Informax International Pty Ltd v Clarius Group Ltd (2011) 192 FCR 210 JC Williamson Ltd v Lukey (1931) 45 CLR 282 Jensen v Ray [2011] NSWCA 247 Kone Elevators Pty Ltd v McNay (1997) Aust Contract R 90-080 Koops Martin Financial Services Pty Ltd v Reeves [2006] NSWSC 449 Landmark Underwriting Agency Pty Ltd v Kilborn [2006] NSWSC 1108 Lindner v Murdock's Garage (1950) 83 CLR 628 Littlewoods Organisation Ltd v Harris [1977] 1 WLR 1472 Long v Minister for Immigration and Multicultural and Indigenous Affairs [2002] FCAFC 438 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; (2001) 210 CLR 181 Marion White Ltd v Francis [1972] 1 WLR 1423 Miles v Genesys Wealth Advisers Ltd [2009] NSWCA 25 Minister for Immigration and Multicultural and Indigenous Affairs v Al Masri [2003] FCAFC 70; (2003) 126 FCR 54 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451 Pawlowska v Zajglic [2011] NSWCA 118 People with Disability Australia Inc v Minister for Disability Services [2011] NSWCA 253 Peter Pan Manufacturing Corporation v Corsets Silhouette Ltd [1964] 1 WLR 96 Purcell v Tullett Prebon (Aust) Pty Ltd [2010] NSWCA 150 Queensland Co-operative Milling Association v Pamag Pty Ltd (1973) 133 CLR 260 Reid v Howard (1993) 31 NSWLR 298 Rentokil Pty Ltd v Lee (1995) 66 SASR 301 RLA Polymers Pty Ltd v Nexus Adhesives Pty Ltd [2011] FCA 423 Roger Bullivant Ltd v Ellis [1987] FSR 172 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5; (2002) 240 CLR 455 Saltman Engineering Co Ltd v Campbell Engineering Co Ltd (1948) 65 RPC 203 Seager v Copydex Ltd [1967] 1 WLR 923 Seaward v Paterson [1897] 1 Ch 545 Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd [1979] HCA 51; (1979) 144 CLR 596 Southern Cross Exploration NL v Fire & All Risks Insurance Company Ltd (No. 2) (1990) 21 NSWLR 200 State of South Australia v Lampard-Trevorrow [2008] SASC 370 Stenhouse Australia Ltd v Phillips [1973] 2 NSWLR 691; [1974] AC 391 Tchoylak v Minister for Immigration and Multicultural Affairs [2001] FCA 872; (2001) 111 FCR 302 Terrapin Ltd v Builders' Supply Co (Hayes) Ltd [1967] RPC 375 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; 219 CLR 165 Twenty-First Australia Inc v Shade (unreported Supreme Court of NSW, Young J, 31 July 1998) United States Surgical Corporation v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 United States Surgical Corporation v Hospital Products International Pty Ltd [1983] 2 NSWLR 157 Visscher v Giudice [2009] HCA 34; (2009) 239 CLR 361 Woolworths Ltd v Olson [2004] NSWCA 372 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 Zhu v Treasurer of the State of NSW [2004] HCA 56; (2004) 218 CLR 530 Texts Cited: J D Heydon, The Restraint of Trade Doctrine, 3rd ed Meagher, Gummow & Lehane's Equity Doctrines and Remedies, 4th ed Category: Principal judgment Parties: Joao Louis Jardin (First Appellant) Jardim Investments Pty Ltd (Second Appellant) Metcash Ltd (First Respondent) Metcash Trading Ltd (Second Respondent) Representation: Counsel: I M Neil SC / R Gration (Appellants) J J Fernon SC / M S White (Respondents) Solicitors: Clamenz Corporate Lawyers (Appellants) Freehills (Respondents) File Number(s): CA 2010/242993 Decision under appeal Citation: Metcash Ltd & Anor v Joao Louis Jardim (aka Louis Jardin) & Anor (No 3) [2010] NSWSC 1096 Metcash Ltd v Jardim & Anor (No 5) [2010] NSWSC 1342 Before: Ball J File Number(s): 2010/242993