Then There Were Three Pty Limited v Douglas [2014] NSWSC 1011

Supreme Court New South Wales

Medium Neutral Citation: Then There Were Three Pty Limited v Douglas [2014] NSWSC 1011 Hearing dates: 28, 29, 30 and 31 October and 1, 4, 5, 6, 8, 12 and 13 November 2013 Decision date: 25 July 2014 Jurisdiction: Equity Division Before: Lindsay J Decision: (1) In the main proceedings (numbered 2011/0092402): Orders to be made for dismissal of proceedings for enforcement, by purchaser of a business, of contractual restraints of trade. (2) In the ancillary proceedings (2011/00413221): Judgment to be granted in favour of vendor (of shares/business sold subject to restraints) for unpaid purchase moneys Catchwords: Restraints of trade - Validity and reasonableness - Vendor of business - Purchase price payable by instalments and adjustable depending on trade experience - Restraints held invalid Legislation Cited: Restraints of Trade Act 1976 NSW Uniform Civil Procedure Rules 2005 NSW, r 28.2 Cases Cited: Agricultural and Rural Finance Pty Limited v Gardiner (2008) 238 CLR 570 at 582 [35] Attorney General of Australia v Adelaide Steamship Co Limited [1913] AC 781 at 796-797 Aussie Home Loans v X Inc Services [2005] NSWSC 285 at [11] Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99 at 109 Barlow v Neville Jeffress Advertising Pty Limited (1994) 4 Tas R 391 at 399-400 BB Australia Pty Limited v Karioi Pty Limited [2010] NSWCA 347 at [61]; [47] Butt v Long (1953) 88 CLR 476 at 486 Equuscorp Pty Limited v Glengallan Investments Pty Limited (2004) 218 CLR 471 at 483 [34] Esso Australia Resources Pty Limited v Southern Pacific Petroleum NL [2005] VSCA 228 at [25] Federal Commissioner of Taxation v Murry (1998) 193 CLR 605 at 611 [12] Hanna v OAMPS Insurance Brokers [2010] NSWCA 267 at [33]; [7]-[14] JQAT Pty Limited v Storm [1987] 2 QD 162 Kearney v Crepaldi [2006] NSWSC 23 AT [47] Lloyd's Ships Holdings Pty Limited v Davros Pty Limited (1987) 17 FCR 505 at 520 Metropolitan Gas Co v Federated Gas Employees' Industrial Union (1925) 35 CLR 449 at 455 Nordenfelt v Maxim Nordenfelt Guns and Ammunition Company Limited [1894] AC 535 Pacific Carriers Limited v BNP Paribas (2004) 218 CLR 451 at 461-462 [22] Peters (WA) Limited v Petersville Limited (2001) 205 CLR 126 at 134-135 [14] Positive Endeavour Pty Limited v Madigan [2009] SASC 281 at [30] Queensland Cooperative Milling Association v Pamag Pty Limited (1973) 133 CLR 260 at 268 Renard Constructions (ME) Pty Limited v Minister for Public Works (1992) 26 NSWLR 234 at 256 and 263-268 Ronbar Enterprises Limited v Green [1954] 1 WLR 815; [1954] 2 All ER 266 SST Consulting Services Pty Limited v Rieson (2006) 225 CLR 516 at 530 [42] - 531 [46] Toll (FGCT) Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165 at 179 [40] Wilkie v Gordian Runoff Limited (2005) 221 CLR 522 at 529 [16] Woolworths Limited v Olson [2004] NSWCA 372 at [39]; [40]-[41] Texts Cited: JD Heydon, The Restraint of Trade Doctrine (3rd ed, 2008), pp 33, 35, 41-44, 45, 50, 86 K Lewison and D Hughes, The Interpretation of Contracts in Australia (Law Book Co, Sydney, 2012), para [7.02] Category: Principal judgment Parties: In the main proceedings (2011/0092402): Then There Were Three Pty Limited ACN 126 893 169, Plaintiff Stephen Paul Douglas, First Defendant DF Hold Pty Limited ACN 114 916 586, ATF the Douglas Family Holdings Trust, Second Defendant Jennifer Ann Douglas, Third Defendant Ian Douglas, Fourth Defendant Cameron Ian Douglas, Fifth Defendant Suzanne Spalding, Sixth Defendant