KPW Law Pty Ltd v Patel [2023] NSWSC 617

KPW Law Pty Ltd v Patel [2023] NSWSC 617

The application for interlocutory injunction was refused because although there was a serious question to be tried as to the validity of the restraint, the clause was poorly drafted, likely to be invalid or require reading down, KPW's case was not strong, and the balance of convenience favoured the defendant given the lack of client solicitation, the hardship to Mr Patel, the regional need for criminal lawyers, the adequacy of damages as a remedy, and the undertaking offered by Mr Patel not to solicit former clients.

Parties
Plaintiff: KPW Law Pty Ltd; Defendant: Chirag Patel
Jurisdiction
Australia
Judgment Date
09 June 2023
Procedural Posture
Interlocutory Application / Decision on Interlocutory Injunction
Outcome
Interlocutory injunction refused; matter expedited
Legal Topics
Restraint of Trade, Interlocutory Injunction, Employment Contracts, Enforceability of Restraints
Equity Commercial Law Employment Law Restraint of Trade Interlocutory Injunction Employment Contracts Enforceability of Restraints

Case Brief

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Parties

KPW Law Pty Ltd

Plaintiff

Chirag Patel

Defendant

Procedural Posture

Interlocutory Application / Decision on Interlocutory Injunction

Legal Issues

  1. 1 Whether interlocutory injunctive relief should be granted to enforce a restraint of trade clause in an employment contract pending the final hearing
  2. 2 Whether the restraint of trade clause is valid and reasonable as between the parties and in the public interest
  3. 3 Whether damages would be an adequate remedy for breach of restraint

Ratio Decidendi

The application for interlocutory injunction was refused because although there was a serious question to be tried as to the validity of the restraint, the clause was poorly drafted, likely to be invalid or require reading down, KPW's case was not strong, and the balance of convenience favoured the defendant given the lack of client solicitation, the hardship to Mr Patel, the regional need for criminal lawyers, the adequacy of damages as a remedy, and the undertaking offered by Mr Patel not to solicit former clients.

Court Disposition

Interlocutory injunction refused; matter expedited

Orders

  • The court notes the undertaking of the defendant not to solicit former clients of the plaintiff for six months and to maintain confidentiality.
  • The defendant is to keep up-to-date financial records of revenue for his practice and provide details as ordered.