Structerre Consulting Engineers (NSW) Pty Ltd v Townend [2020] NSWSC 1894

Structerre Consulting Engineers (NSW) Pty Ltd v Townend [2020] NSWSC 1894

Mr Townend had not justified complete release from the undertaking because he made a tactical decision to avoid the interlocutory application, obtained the benefit of the usual undertaking as to damages, and at least some information covered was prima facie confidential. However, circumstances had changed sufficiently to justify allowing a substitute undertaking: expedition had effectively been lost, the undertaking would operate for a considerably extended and indefinite period, Structerre had expanded and particularised its confidential information case, and the undertaking's imprecision created an unacceptable risk of unintended contempt. The appropriate course was to give Mr Townend...

Jurisdiction
Australia
Judgment Date
21 December 2020
Procedural Posture
Notice of Motion in Proceedings for Injunctive Relief Concerning Post Employment Restraint and Confidential Information / Interlocutory Application to Discharge or Replace Undertaking
Outcome
The motion was not granted as a complete discharge of the undertaking, but Mr Townend was given the opportunity to provide a substitute undertaking; costs were ordered to be costs in the cause.
Legal Topics
['restraint of Trade' 'post Employment Contractual Restraint' 'confidential Information' 'undertaking to the Court' 'interlocutory Relief' 'variation or Discharge of Undertaking']

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Procedural Posture

Notice of Motion in Proceedings for Injunctive Relief Concerning Post Employment Restraint and Confidential Information / Interlocutory Application to Discharge or Replace Undertaking

  1. 1 ["Whether the defendant should be released from the undertaking given to the Court concerning the plaintiff's confidential information." 'Whether changed circumstances made enforcement of the undertaking unjust.' 'Whether, instead of complete discharge, the Court should permit a substitute undertaking in more precise terms.']

Ratio Decidendi

Mr Townend had not justified complete release from the undertaking because he made a tactical decision to avoid the interlocutory application, obtained the benefit of the usual undertaking as to damages, and at least some information covered was prima facie confidential. However, circumstances had changed sufficiently to justify allowing a substitute undertaking: expedition had effectively been lost, the undertaking would operate for a considerably extended and indefinite period, Structerre had expanded and particularised its confidential information case, and the undertaking's imprecision created an unacceptable risk of unintended contempt. The appropriate course was to give Mr Townend...

Court Disposition

The motion was not granted as a complete discharge of the undertaking, but Mr Townend was given the opportunity to provide a substitute undertaking; costs were ordered to be costs in the cause.

Orders

  • ['Mr Townend was not released completely from the undertaking, whether immediately or on 31 January 2021.' 'Mr Townend may provide a new undertaking to the Court in substitution for the existing undertaking, if he wishes to avail himself of that opportunity.' 'The parties are to consider the reasons and discuss the...