Janala Pty Ltd v Hardaker [2022] NSWSC 822

Janala Pty Ltd v Hardaker [2022] NSWSC 822

The plaintiff established a serious question to be tried as to the validity of the post-employment restraint, but the balance of convenience favoured granting interlocutory relief in the limited form of the defendant's undertakings (the 'warehouse proposal'), as broader relief would go further than necessary to protect legitimate interests and cause disproportionate hardship to the defendant.

Jurisdiction
Australia
Judgment Date
22 June 2022
Procedural Posture
Interlocutory Application / Interlocutory Injunction (decision on Form of Relief)
Outcome
Interlocutory injunction granted in terms of warehouse proposal (defendant to be permitted non-client warehouse role at competitor; undertakings required)
Legal Topics
['contract' 'restraint of Trade' 'interlocutory Injunctions' 'confidential Information' 'post Employment Restraint' 'balance of Convenience']
['employment and Industrial Law' 'equity'] ['contract' 'restraint of Trade' 'interlocutory Injunctions' 'confidential Information' 'post Employment Restraint' 'balance of Convenience']

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Procedural Posture

Interlocutory Application / Interlocutory Injunction (decision on Form of Relief)

Legal Issues

  1. 1 ["Whether interlocutory injunction should restrain the defendant from working for the plaintiff's competitor (PFM Corp) in any capacity, or permit limited employment (the 'warehouse proposal')" 'Whether the post-employment restraint clause and Undertaking are enforceable (prima facie case)' "Whether balance of convenience favours the broader injunction or the 'warehouse proposal'"]

Ratio Decidendi

The plaintiff established a serious question to be tried as to the validity of the post-employment restraint, but the balance of convenience favoured granting interlocutory relief in the limited form of the defendant's undertakings (the 'warehouse proposal'), as broader relief would go further than necessary to protect legitimate interests and cause disproportionate hardship to the defendant.

Court Disposition

Interlocutory injunction granted in terms of warehouse proposal (defendant to be permitted non-client warehouse role at competitor; undertakings required)

Orders

  • ['Within 7 days, defendant to serve an affidavit detailing use/disclosure of confidential information since 1 December 2021' 'Within 7 days, defendant to deliver up all confidential information in his possession, custody, or power' 'Until 22 October 2022 or further order, defendant restrained from (a)...