JMB (NSW) Pty Limited trading as McGrath Central Coast v West [2020] NSWSC 1380

JMB (NSW) Pty Limited trading as McGrath Central Coast v West [2020] NSWSC 1380

Although JMB established a prima facie case that Mr West was bound by at least one contract containing the relevant restraint terms, the interlocutory relief sought beyond the defendants' undertakings was not justified. The restraint against employment with a competing business was drastic, the case for...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
22 September 2020
Procedural Posture
Employment Dispute Concerning Post Employment Restraints and Confidential Information / Application for Interlocutory Injunctions and Related Interlocutory Relief
Outcome
The defendants' written undertakings were noted and accepted, and JMB's application for interlocutory relief was otherwise dismissed.
Legal Topics
['interlocutory Restraint of Trade' 'post Employment Restraint Against Employment With Competing Business' 'non Solicitation Restraint' 'confidential Information' 'preliminary Discovery or Access to Electronic Devices' 'balance of Convenience' 'delay']
['employment Law' 'contract Law' 'civil Procedure' 'equity'] ['interlocutory Restraint of Trade' 'post Employment Restraint Against Employment With Competing Business' 'non Solicitation Restraint' 'confidential Information' 'preliminary Discovery or Access to Electronic Devices' 'balance of Convenience' 'delay']

Source-derived case record

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Procedural Posture

Employment Dispute Concerning Post Employment Restraints and Confidential Information / Application for Interlocutory Injunctions and Related Interlocutory Relief

Legal Issues

  1. 1 ['Whether JMB established a sufficient prima facie case that Mr West was bound by the written employment contracts containing the post-employment restraints.' "Whether an interlocutory restraint preventing Mr West from working for WIH or The Agency Central Coast was justified to protect JMB's legitimate interests." "Whether an interlocutory restraint on Mr West's self-promotion using social media should be granted." 'Whether Mr West should be restrained from soliciting or accepting instructions from persons listed as buyers or vendors in the May 2020 listings report, including persons with whom he had no direct dealings.' "Whether Mr West should be required to submit electronic devices to an independent computer expert for investigation of JMB's confidential information."]

Ratio Decidendi

Although JMB established a prima facie case that Mr West was bound by at least one contract containing the relevant restraint terms, the interlocutory relief sought beyond the defendants' undertakings was not justified. The restraint against employment with a competing business was drastic, the case for enforceability was not strong because Mr West was a junior sales employee and the undertakings protected JMB's customer and confidentiality interests, the balance of convenience favoured Mr West, and JMB had delayed after learning of the competing employment. The broader solicitation restraint based on the listings report was weak because it extended to persons with whom Mr West had no...

Court Disposition

The defendants' written undertakings were noted and accepted, and JMB's application for interlocutory relief was otherwise dismissed.

Orders

  • ["Note and accept the defendants' written undertakings dated 16 September 2020." "Order that the plaintiff's application for interlocutory relief be otherwise dismissed." "Order that the plaintiff pay the defendant's costs of the application from 17 September 2020 onwards and otherwise that the parties' costs of the...