Boating Syndication of Australia Pty Ltd v BSA Management Qld Pty Ltd [2024] FCA 502

Boating Syndication of Australia Pty Ltd v BSA Management Qld Pty Ltd [2024] FCA 502

There is a serious question to be tried as to the validity of the restraint, but the balance of convenience does not favour the grant of the interlocutory injunction because the applicants’ primary protectable interests are sufficiently protected by undertakings and proposed orders; further, damages will be an adequate remedy and the detriment to the respondents would outweigh injury to the applicants if relief were granted.

Parties
First Applicant: Boating Syndication of Australia Pty Ltd; Second Applicant: A and B Management Pty Ltd; Third Applicant: A and B Marine Custodians Pty Ltd; First Respondent: BSA Management QLD Pty Ltd; Second Respondent: Mr Piers Schmidt
Jurisdiction
Australia
Judgment Date
14 May 2024
Procedural Posture
Interlocutory Application / Determination of Urgent Interlocutory Relief to Enforce Contractual Restraint of Trade
Outcome
Application for interlocutory injunction refused. Certain orders made and other relief dismissed. Costs ordered against the applicants for the relevant paragraphs of the interlocutory application, subject to application to vary.
Legal Topics
Restraint of Trade, Interlocutory Injunctions, Balance of Convenience, Onus of Proof, Public Policy
Practice and Procedure Contract Law Restraint of Trade Interlocutory Injunctions Balance of Convenience Onus of Proof Public Policy

Case Brief

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Parties

Boating Syndication of Australia Pty Ltd

First Applicant

A and B Management Pty Ltd

Second Applicant

A and B Marine Custodians Pty Ltd

Third Applicant

BSA Management QLD Pty Ltd

First Respondent

Mr Piers Schmidt

Second Respondent

Procedural Posture

Interlocutory Application / Determination of Urgent Interlocutory Relief to Enforce Contractual Restraint of Trade

Legal Issues

  1. 1 Whether the respondents' conduct infringes the contractual restraint of trade clause
  2. 2 Whether the restraint is reasonable and enforceable under the Restraint of Trade Act (NSW) s 4
  3. 3 Whether the applicants are entitled to an interlocutory injunction pending trial

Ratio Decidendi

There is a serious question to be tried as to the validity of the restraint, but the balance of convenience does not favour the grant of the interlocutory injunction because the applicants’ primary protectable interests are sufficiently protected by undertakings and proposed orders; further, damages will be an adequate remedy and the detriment to the respondents would outweigh injury to the applicants if relief were granted.

Court Disposition

Application for interlocutory injunction refused. Certain orders made and other relief dismissed. Costs ordered against the applicants for the relevant paragraphs of the interlocutory application, subject to application to vary.

Orders

  • Upon the applicants giving the usual undertaking as to damages, certain restraints and confidentiality orders apply to the respondents and associated parties.
  • Paragraph 5 of the applicants' interlocutory application filed on 17 April 2024 is otherwise dismissed.