Dundoen Pty Limited v Richard Wills (Real Estate) Pty Limited [2020] NSWSC 1534

Dundoen Pty Limited v Richard Wills (Real Estate) Pty Limited [2020] NSWSC 1534

The written agreement signed on 23 April 2019 replaced the earlier oral contract and was supported by consideration, making it binding. The plaintiff has a legitimate protectable interest in customer connection, justifying post-employment restraints. The non-solicitation, no-dealing, non-competition, and non-encouragement restraints are reasonable and enforceable for a period of 12 months and within a 5 km radius, consistent with the parties' intentions and the nature of the business and customer connections.

Jurisdiction
Australia
Judgment Date
05 November 2020
Procedural Posture
Principal Judgment / Final Judgment
Outcome
Restraints enforced for 12 months; confidentiality order made; parties to submit orders reflecting these reasons.
Legal Topics
['formation of Contract' 'consideration' 'restraints of Trade' 'legitimate Protectable Interest' 'customer Connection' 'non Solicitation Restraint' 'non Competition Restraint' 'no Dealing Restraint' 'non Encouragement Restraint']
['contracts' 'employment and Industrial Law' 'equity'] ['formation of Contract' 'consideration' 'restraints of Trade' 'legitimate Protectable Interest' 'customer Connection' 'non Solicitation Restraint' 'non Competition Restraint' 'no Dealing Restraint' 'non Encouragement Restraint']

Case Brief

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Procedural Posture

Principal Judgment / Final Judgment

Legal Issues

  1. 1 ['Whether the written agreement signed on 23 April 2019 was binding and replaced the earlier oral contract of employment' 'Whether the contract included post-employment restrictive covenants' 'What the reasonable scope and duration of the restrictions should be']

Ratio Decidendi

The written agreement signed on 23 April 2019 replaced the earlier oral contract and was supported by consideration, making it binding. The plaintiff has a legitimate protectable interest in customer connection, justifying post-employment restraints. The non-solicitation, no-dealing, non-competition, and non-encouragement restraints are reasonable and enforceable for a period of 12 months and within a 5 km radius, consistent with the parties' intentions and the nature of the business and customer connections.

Court Disposition

Restraints enforced for 12 months; confidentiality order made; parties to submit orders reflecting these reasons.

Orders

  • ['Post-employment non-solicitation, no-dealing, non-competition, and non-encouragement restraints imposed on the second defendant for 12 months from 12 November 2019 within 5 km radius.' 'Confidentiality orders as sought by the plaintiff.']