OAMPS Gault Armstrong Pty Ltd & Anor v Andrew Glover & Anor [2012] NSWSC 1175

OAMPS Gault Armstrong Pty Ltd & Anor v Andrew Glover & Anor [2012] NSWSC 1175

Because serious questions to be tried were accepted, the decisive issue was balance of convenience. The plaintiffs demonstrated reasonable prospects of success and showed that, absent interim protection, their goodwill and custom in the marine insurance business were likely to be endangered by the defendants' attraction power while working for a direct competitor, particularly in light of FP Marine's press release and the immediate appointment of FP Marine by two plaintiffs' clients. The proffered undertakings did not provide all protection to which the plaintiffs were entitled, and any interim hardship to the defendants would probably be protected by the plaintiffs' undertaking as to...

Jurisdiction
Australia
Judgment Date
02 October 2012
Procedural Posture
Interlocutory Applications / Application for Interlocutory Injunctions Restraining Former Employees From Undertaking Employment With a Competitor in Alleged Breach of Restraint Provisions in Employment Contracts
Outcome
Interlocutory injunctions granted in part; balance of convenience favoured the plaintiffs.
Legal Topics
['restraint of Trade' 'employment Contracts' 'interlocutory Injunctions' 'non Competition Covenants' 'non Solicitation Covenants' 'confidential Information' 'goodwill' 'balance of Convenience']
['employment Law' 'contract Law' 'equity'] ['restraint of Trade' 'employment Contracts' 'interlocutory Injunctions' 'non Competition Covenants' 'non Solicitation Covenants' 'confidential Information' 'goodwill' 'balance of Convenience']

Case Brief

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Procedural Posture

Interlocutory Applications / Application for Interlocutory Injunctions Restraining Former Employees From Undertaking Employment With a Competitor in Alleged Breach of Restraint Provisions in Employment Contracts

Legal Issues

  1. 1 ["Whether there were serious questions to be tried as to the operation, validity and breach of the restraint provisions in the defendants' employment contracts." 'Whether the balance of convenience favoured granting interlocutory injunctions enforcing post-employment non-competition and non-solicitation restraints.' "Whether the defendants' proffered undertakings as to non-solicitation and non-disclosure of confidential information would adequately protect the plaintiffs' legitimate interests pending final hearing." 'Whether any non-competition restraint should be limited to employment as marine insurance brokers.']

Ratio Decidendi

Because serious questions to be tried were accepted, the decisive issue was balance of convenience. The plaintiffs demonstrated reasonable prospects of success and showed that, absent interim protection, their goodwill and custom in the marine insurance business were likely to be endangered by the defendants' attraction power while working for a direct competitor, particularly in light of FP Marine's press release and the immediate appointment of FP Marine by two plaintiffs' clients. The proffered undertakings did not provide all protection to which the plaintiffs were entitled, and any interim hardship to the defendants would probably be protected by the plaintiffs' undertaking as to...

Court Disposition

Interlocutory injunctions granted in part; balance of convenience favoured the plaintiffs.

Orders

  • ['Upon the plaintiffs giving the usual undertakings as to damages, orders were proposed in accordance with paragraphs 7(b), 7(c), 7(d), 7(e) and 8 of the summons filed 19 September 2012.' "The plaintiffs' costs of the application were ordered to be the plaintiffs' costs in the proceedings." 'The plaintiffs were...