Electroboard Administration v O'Brien [1999] NSWCA 452

Electroboard Administration v O'Brien [1999] NSWCA 452

Although the agreement adding the restraint of trade term was supported by consideration, Mrs O'Brien did not breach the contract because she was employed by a related company and not a subsidiary of Electroboard Administration Pty Ltd. The covenant did not cover related companies, and the new employer was not a subsidiary; therefore, there was no breach.

Jurisdiction
Australia
Judgment Date
10 December 1999
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
['restraint of Trade' 'employment Contract' 'consideration' 'breach of Contract']
['employment Law' 'contract Law'] ['restraint of Trade' 'employment Contract' 'consideration' 'breach of Contract']

Case Brief

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Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 ['Whether the restraint of trade covenant in an employment contract was enforceable' 'Whether there was consideration for the additional restraint of trade term' 'Whether there was a breach of the restraint of trade agreement']

Ratio Decidendi

Although the agreement adding the restraint of trade term was supported by consideration, Mrs O'Brien did not breach the contract because she was employed by a related company and not a subsidiary of Electroboard Administration Pty Ltd. The covenant did not cover related companies, and the new employer was not a subsidiary; therefore, there was no breach.

Court Disposition

Appeal dismissed

Orders

  • ['Appeal dismissed' 'No order as to costs']