Isaac v Dargan Financial Pty Ltd ATF The Dargan Financial Discretionary Trust (ABN 68 702 047 521) (trading under the name of Home Loan Experts) [2018] NSWCA 163

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Isaac v Dargan Financial Pty Ltd ATF The Dargan Financial Discretionary Trust (ABN 68 702 047 521) (trading under the name of Home Loan Experts) [2018] NSWCA 163 Hearing dates: 21 February 2018 Decision date: 27 July 2018 Before: Bathurst CJ at [1] Beazley P at [2] Gleeson JA at [3] Decision: (1) Appeal allowed in part.

(2) Set aside order 1 made by the primary judge on 24 August 2017.

(3) Direct the appellant to file short written submissions on costs within 14 days, and the respondent to file short written submissions in response within a further 14 days, such submissions not to exceed 3 pages. Direct that the question of costs be determined on the papers.

(4) Discharge the stay granted on 21 September 2017 of orders 1 and 2 made on 28 August 2017. Catchwords: RESTRAINT OF TRADE – covenants in restraint of trade – enforcement of covenants following termination of independent contractor relationship – non-interference covenant – where appellant prohibited from interfering with relationship between respondent and its clients – whether appellant interfered RESTRAINT OF TRADE – reasonableness of non-solicitation covenant - whether respondent had a legitimate commercial interest in protecting client connections and confidential information – whether non-solicitation covenant was reasonable CONTRACTS – general contractual principles – construction and interpretation of contracts – whether the expression "confidential information" should be limited to information which is confidential in nature EQUITY – confidentiality obligations – whether respondent's client lists constituted confidential information – whether client details were known outside respondent's business – where clients' contact details kept in appellant's phone and computer – where clients' names published on appellant's Facebook page – whether clients' details entered public domain REMEDIES – injunction – where appellant restrained from use and disclosure of contents of client lists – whether discretion to grant injunction miscarried – where client details tendered in open court by respondent without seeking or obtaining confidentiality order – whether client information entered public domain – whether there was utility in restraining appellant from disclosing or using client details Legislation Cited: Australian Securities Commission Act 1989 (Cth) Competition and Consumer Act 2010 (Cth), ss 44ZZRD, 51(2)(b) Restraints of Trade Act 1976 (NSW), s 4 Practice Note SC Gen 2 Cases Cited: Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd (1973) 133 CLR 288; [1973] HCA 40 Attorney-General v Guardian Newspapers Ltd [No 2] [1990] 1 AC 109 Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99; [1973] HCA 36 BB Australia Pty Ltd v Karioi Pty Ltd [2010] NSWCA 347 Brand v Monks [2009] NSWSC 1454 Bridge v Deacons [1984] 1 AC 705 Buckley v Tutty (1971) 125 CLR 353; [1971] HCA 71 Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9; [2006] NSWSC 717 Del Casale v Artedomus (Aust) Pty Ltd [2007] NSWCA 172 DP World Sydney Ltd v Guy [2016] NSWSC 1072 FBHS (Aust) Pty Ltd v Stone Homes Pty Ltd [2014] NSWCA 312 Federal Commissioner of Taxation v Murry (1998) 193 CLR 605; [1998] HCA 42 Geraghty v Minter (1979) 142 CLR 177; [1979] HCA 42 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 House v The King (1936) 55 CLR 499; [1936] HCA 40 Idameneo (123) Pty Ltd v Angel-Honnibal [2002] NSWSC 1214 Inland Revenue Commissioners v Muller & Co's Margarine Ltd [1901] AC 217 Jardin and Jardin Investments Pty Ltd v Metcash Ltd and Metcash Trading Ltd [2011] NSWCA 409 Johns v Australian Securities Commission (1993) 178 CLR 408; [1993] HCA 56 Lindner v Murdock's Garage (1950) 83 CLR 628; [1950] HCA 48 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181; [2001] HCA 70 Marshall v NM Financial Management Ltd [1995] 4 All ER 785 Mobil Oil Australia Ltd v McKenzie [1972] VR 315 NE Perry Pty Ltd v Judge (2002) 84 SASR 86; [2002] SASC 312 Nordenfelt v The Maxim Nordenfelt Guns & Ammunition Co Ltd [1894] AC 535 O'Grady v Northern Queensland Co Ltd (1990) 169 CLR 356; [1990] HCA 16 OAMPS Insurance Brokers Ltd v Hanna [2010] NSWSC 781 Orton v Melman [1981] 1 NSWLR 583 PMT Partners Pty Ltd (in liq) v Australian National Parks & Wildlife Service (1995) 184 CLR 301; [1995] HCA 36 Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (1998) 195 CLR 1 at 47; [1998] HCA 30 Pyle v Sharpe Bros Pty Ltd [1968] 2 NSWR 511 Redland Bricks Ltd v Morris [1970] AC 652 Sidameneo (No 456) Pty Ltd v Alexander [2011] NSWCA 418 Stenhouse Australia Ltd v Phillips [1974] AC 391 Stokely-Van Camp Inc v New Generation Beverages Pty Ltd (1998) 44 NSWLR 607 Tullett Prebon (Australia) Pty Ltd v Purcell [2008] NSWSC 852; [2008] 175 IR 414 Twenty-First Australia Inc v Shade (Supreme Court (NSW), Young J, 31 July 1998, unrep) Veda Advantage (Australia) Pty Ltd v De Beer [2016] NSWSC 37 Winnipeg Livestock Sales Ltd v Plewman [2000] 192 DLR (4th) 525 Woolworths Limited v Olson [2004] NSWCA 372 WR Carpenter Aust Ltd v Kleisterlee (1988) ATPR 40-913 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 Texts Cited: GE Dal Pont, Law of Confidentiality (1st ed, 2015, LexisNexis Butterworths) Prof JD Heydon, The Restraint of Trade Doctrine (4th ed, 2018, LexisNexis Butterworths) Category: Principal judgment Parties: Nassif Isaac (otherwise known as Norman Isaac) (Appellant) Dargan Financial Pty Ltd ATF The Dargan Financial Discretionary Trust (ABN 68 702 047 521) (trading under the name of "Home Loan Experts") (Respondent) Representation: Counsel: Mr A Moses SC / Mr T Brennan (Appellant) Mr M Young SC (Respondent)