Provida Pty Limited v Sharpe [2012] NSWSC 1041

Supreme Court New South Wales

Medium Neutral Citation: Provida Pty Limited v Sharpe [2012] NSWSC 1041 Hearing dates: 27 and 28 August 2012 Decision date: 29 August 2012 Jurisdiction: Equity Division Before: Pembroke J Decision: See paragraphs [31] - [32] Catchwords: CONTRACT - employment - restraint of trade - "directly or indirectly" - providing services through newly established company - company is "one-man band" with short history - overall context and evident purpose and object of "trade in competition" - phrase "indirectly" covers circumstances of defendant's close connection with new company CONTRACT - employment - restraint of trade - legitimate interest - protection of confidential information - severance of connection between defendant and clients of plaintiff CONFLICT OF LAWS - proper law of contract - closest and most real connection - place of formation of contract only one factor determining applicable system of law - location of head office of employer influential STATUTORY INTERPRETATION - Competition and Consumer Act 2010 (Cth) - cartel provisions and restraints of trade - s 51(2)(b) exception - evident purpose to protect restraints on trade in employment contracts Legislation Cited: Competition and Consumer Act 2010 (Cth) Restraints of Trade Act 1976 Cases Cited: Arthur Murray Dance Studios of Cleveland Inc v Witter (1952) 105 NE (2d) 685 Baltic Shipping Co v Dillon [1991] NSWCA 19; (1991) 22 NSWLR 1 Bonython v Commonwealth [1951] AC 201 Buckley v Tutty [1971] HCA 71; (1971) 125 CLR 353 Cactus Imaging Pty Ltd v Peters [2006] NSWSC 717; (2006) 71 NSWLR 9 Cooney v Council of the Municipality of Ku-ring-gai [1963] HCA 47; (1963) 114 CLR 582 Curro v Beyond Productions Pty Ltd (1993) 30 NSWLR 337 Dewes v Fitch [1920] 2 Ch 159 Harlow Property Consultants Pty Ltd v Byford [2005] NSWSC 658 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 Kearney v Crepaldi [2006] NSWSC 23 Koops Martin Financial Services Pty Ltd v Reeves [2006] NSWSC 449 Lindner v Murdock's Garage [1950] HCA 48; (1950) 83 CLR 628 Linwar Securities Pty Ltd v Christopher Savage [2006] NSWSC 786 Littlewoods Organisation Ltd v Harris [1977] 1 WLR 1472 Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd [1894] AC 535 Oceanic Sun Line Special Shipping Co Inc v Fay [1988] HCA 32; (1988) 165 CLR 197 Seven Network (Operations) Ltd v Warburton (No 2) [2011] NSWSC 386 Toll (PGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 49; (2004) 219 CLR 165 Woolworths Ltd v Olson [2004] NSWCA 372 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 Category: Separate question Parties: Provida Pty Limited - plaintiff Ashley Sharpe - first defendant ITW Australis Pty Limited - second defendant CFCL Australia Pty Limited - third defendant Magni Pty Limited - fourth defendant Representation: Counsel: F Corsaro SC - for the plaintiff R W Tregenza - for the first defendant Solicitors: Proctor Phair Lawyers - for the plaintiff BTF Lawyers - for the first defendant Clayton Utz - for the second defendant Allens - for the third defendant Muir Lawyers - for the fourth defendant File Number(s): 2012/142996