NOVA Employment Ltd v Michelle Hira & Ors [2021] NSWSC 1337

NOVA Employment Ltd v Michelle Hira & Ors [2021] NSWSC 1337

Even accepting that Nova had a seriously arguable case based on infringement of the contractual restraints, the Court declined interim injunctive relief. Nova had not convincingly shown that the relevant matters acquired by the Second and Third Defendants were protectable confidential information rather than know-how. The undertakings proffered by the Defendants sufficiently addressed solicitation, interference with relationships, and use of identified confidential information. The balance of convenience favoured the Defendants, having regard to the weak prima facie case for restraining their current employment, their relatively low-level positions and low pay, the disruption of...

Jurisdiction
Australia
Judgment Date
15 October 2021
Procedural Posture
Equity Duty List; Employment Restraint of Trade Proceedings Seeking Injunctive Relief / Interim Injunction Application
Outcome
Interim injunction declined.
Legal Topics
['restraint of Trade' 'interim Injunction' 'confidential Information' 'employee Know How' 'former Employees Working for Competitors' 'balance of Convenience']
['employment and Industrial Law' 'contract Law' 'equity'] ['restraint of Trade' 'interim Injunction' 'confidential Information' 'employee Know How' 'former Employees Working for Competitors' 'balance of Convenience']

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Procedural Posture

Equity Duty List; Employment Restraint of Trade Proceedings Seeking Injunctive Relief / Interim Injunction Application

Legal Issues

  1. 1 ['Whether Nova had a serious question to be tried sufficient to justify interim injunctive relief restraining the Second and Third Defendants from their current employment with Ostara and Connex.' 'Whether information acquired by the Defendants in their employment with Nova was confidential information capable of protection, or employee know-how not generally protected by law.' 'Whether the contractual restraints, including the restraint area based on Employment Service Areas, were sufficiently clear and reasonable to support interim relief.' 'Whether the undertakings proffered by the Defendants sufficiently protected Nova pending final determination.' 'Whether the balance of convenience favoured restraining the Second and Third Defendants from working for their new employers.']

Ratio Decidendi

Even accepting that Nova had a seriously arguable case based on infringement of the contractual restraints, the Court declined interim injunctive relief. Nova had not convincingly shown that the relevant matters acquired by the Second and Third Defendants were protectable confidential information rather than know-how. The undertakings proffered by the Defendants sufficiently addressed solicitation, interference with relationships, and use of identified confidential information. The balance of convenience favoured the Defendants, having regard to the weak prima facie case for restraining their current employment, their relatively low-level positions and low pay, the disruption of...

Court Disposition

Interim injunction declined.

Orders

  • ['Decline to grant the interim injunction sought.' 'The Court will hear the parties on costs if agreement is not reached.' 'The matter is listed on Friday, 22 October 2021 for directions.']