DP World Sydney Ltd v Guy [2016] NSWSC 1072

Supreme Court New South Wales

Medium Neutral Citation: DP World Sydney Ltd v Guy [2016] NSWSC 1072 Hearing dates: 27 and 28 July 2016 Decision date: 01 August 2016 Jurisdiction: Equity - Duty List Before: White J Decision: Refer to paras [83], [85], [89] and [90] of judgment. Catchwords: RESTRAINT OF TRADE — Interlocutory injunction — Employer seeking to restrain employee taking up employment with competitor — Whether restraint in employment contract began to run when employee placed on gardening leave — Employee being placed on gardening leave did not terminate employment relationship — Restraint period commenced on the termination of both the employment relationship and the contract of employment — Whether restraint valid — Employee to be taken out of the market for six months — Employee holds a senior position having had access to confidential information and trade secrets — Six month restraint not larger than is reasonably necessary to protect employer's interests in preserving its confidential information — Whether interlocutory injunction should be refused on account of delay in seeking injunction — No obvious prejudice from the delay — Serious question to be tried — Balance of convenience favours employer — Interlocutory injunction granted Cases Cited: Automatic Fire Sprinklers Pty Ltd v Watson [1946] HCA 25; (1946) 72 CLR 435 Byrne v Australian Airlines Ltd (1995) 185 CLR 410 Capgemini US v Case [2004] NSWSC 674 Kolback Securities Limited v Epoch Mining NL (1987) 8 NSWLR 533 Kone Elevators Pty Ltd v McNay (1997) ATPR 41-564 Network Ten Ltd v Fulwood (Supreme Court of NSW, Young J, 4 December 1995, unreported; BC9501805) Otis Elevator Company Pty Ltd v Nolan [2007] NSWSC 593 The Littlewoods Organisations Ltd v Harris [1978] 1 All ER 1026 Tullet Prebon (Australia) Pty Ltd v Purcell [2008] NSWSC 852; (2008) 175 IR 414 Woolworths Ltd v Olson [2004] NSWCA 372 Texts Cited: J D Heydon, M J Leeming and PG Turner, Meagher, Gummow and Lehane's Equity: Doctrines & Remedies, 5th ed, 2015 LexisNexis Butterworths Category: Procedural and other rulings Parties: DP World Sydney Ltd (Plaintiff) Bruce Guy (1st Defendant) Asciano Executive Services Pty Ltd (2nd Defendant) Representation: Counsel: Y Shariff with V Bulut (Plaintiff) R M Goot SC with S R Meehan (Defendants)