Loremo Pty Limited v A1 Chemicals Pty Ltd [2015] NSWDC 159

Loremo Pty Limited v A1 Chemicals Pty Ltd [2015] NSWDC 159

A1 Chemicals Pty Ltd breached the Deed by appointing Twin Distributors Pty Limited (a Cyndan Distributor) during the restraint period, contrary to clauses 2.2.1 and 2.2.2. The restraint of trade clause was enforceable as part of a bona fide compromise, negotiated with legal representation and reasonable in its scope and effect. Damages suffered by the plaintiffs are to be assessed based on lost gross profit from relevant customers.

Jurisdiction
Australia
Judgment Date
19 June 2015
Procedural Posture
Civil / Principal Judgment
Outcome
Judgment for the plaintiffs
Legal Topics
['breach of Deed' 'distribution Agreements' 'enforceability of Restraint' 'damages']
['contract Law' 'restraint of Trade'] ['breach of Deed' 'distribution Agreements' 'enforceability of Restraint' 'damages']

Case Brief

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Procedural Posture

Civil / Principal Judgment

Legal Issues

  1. 1 ['Whether A1 Chemicals Pty Ltd breached the Deed of Settlement and Release by appointing Twin Distributors Pty Limited within the restraint period.' "Whether Twin Distributors Pty Limited was a 'Cyndan Distributor' under the Deed." 'Whether the restraint of trade provisions in the Deed are enforceable or unreasonable.' 'Assessment of damages for breach.']

Ratio Decidendi

A1 Chemicals Pty Ltd breached the Deed by appointing Twin Distributors Pty Limited (a Cyndan Distributor) during the restraint period, contrary to clauses 2.2.1 and 2.2.2. The restraint of trade clause was enforceable as part of a bona fide compromise, negotiated with legal representation and reasonable in its scope and effect. Damages suffered by the plaintiffs are to be assessed based on lost gross profit from relevant customers.

Court Disposition

Judgment for the plaintiffs

Orders

  • ['Judgment for the plaintiffs in the sum of $216,920.50' 'Publish Reasons' "Defendant to pay plaintiffs' costs of the proceedings"]