Dental Corporation Pty Ltd v Hungki (Mathew) Lee and Anor [2016] NSWSC 1859

Dental Corporation Pty Ltd v Hungki (Mathew) Lee and Anor [2016] NSWSC 1859

To infringe the restraint of trade clause, the defendant would have had to compete with the practice acquired by the plaintiff; as that practice ceased to exist due to closure by the plaintiff, there was no competing business and thus no breach of the restraint clauses.

Source-derived case information.

Jurisdiction
Australia
Judgment Date
14 December 2016
Procedural Posture
Principal Judgment / Final Determination After Hearing
Outcome
Plaintiff's claim dismissed; defendants entitled to costs.
Legal Topics
['restraint of Trade' 'sale of Business' 'injunctions' 'damages' 'goodwill']
['contract' 'equity'] ['restraint of Trade' 'sale of Business' 'injunctions' 'damages' 'goodwill']

Source-derived case record

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Procedural Posture

Principal Judgment / Final Determination After Hearing

Legal Issues

  1. 1 ['Did the defendants breach restraint of trade clauses following the sale of a dental practice?' 'Was the licensed dental practice closed or moved, and what is the consequence for operation of restraint clauses?' 'Do restraint clauses continue after termination of the lease and closure of practice?' 'Was the restraint clause in the acquisition agreement effective, breached, or too wide on public policy grounds?' 'Is the plaintiff entitled to injunction or damages?']

Ratio Decidendi

To infringe the restraint of trade clause, the defendant would have had to compete with the practice acquired by the plaintiff; as that practice ceased to exist due to closure by the plaintiff, there was no competing business and thus no breach of the restraint clauses.

Court Disposition

Plaintiff's claim dismissed; defendants entitled to costs.

Orders

  • ["Plaintiff's Summons dismissed." "Plaintiff to pay the defendants' costs as agreed or assessed."]