Tullett Prebon (Australia) Pty Ltd v Simon Purcell [2008] NSWSC 852

Tullett Prebon (Australia) Pty Ltd v Simon Purcell [2008] NSWSC 852

Mr Purcell repudiated the contract by his resignation; TPAust elected to affirm the contract which remains on foot, but the employer/employee relationship ended on 4 April 2008. The contractual restraints operate as restraints of trade and are valid only to the extent that they reasonably protect TPAust’s legitimate interests. The restraints are reasonable for the period of actual employment and up to six months following Mr Purcell’s departure. Injunctions restricted to competition in the relevant field are enforceable, do not amount to specific performance of personal services, and it is not just to leave TPAust to damages. Relief is refused beyond six months post-employment, as further...

Jurisdiction
Australia
Judgment Date
21 August 2008
Procedural Posture
Employment Contract Dispute / Final Judgment
Outcome
Declaration and limited injunction for six months post-employment in favour of plaintiff; costs to plaintiff.
Legal Topics
['restraint of Trade' 'repudiation of Employment Contract' 'gardening Leave' 'injunctions' 'reasonableness of Contractual Restraints']
['employment Law' 'contracts' 'equity'] ['restraint of Trade' 'repudiation of Employment Contract' 'gardening Leave' 'injunctions' 'reasonableness of Contractual Restraints']

Case Brief

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Procedural Posture

Employment Contract Dispute / Final Judgment

Legal Issues

  1. 1 ['Whether the contract of employment between the parties remains on foot or has been terminated by repudiation or mutual agreement' 'Whether the contractual prohibitions are void as unreasonable restraints of trade' 'Whether the prohibitions are enforceable in equity without amounting to specific enforcement of a contract of personal services' 'Whether injunctive relief should be declined as a matter of discretion']

Ratio Decidendi

Mr Purcell repudiated the contract by his resignation; TPAust elected to affirm the contract which remains on foot, but the employer/employee relationship ended on 4 April 2008. The contractual restraints operate as restraints of trade and are valid only to the extent that they reasonably protect TPAust’s legitimate interests. The restraints are reasonable for the period of actual employment and up to six months following Mr Purcell’s departure. Injunctions restricted to competition in the relevant field are enforceable, do not amount to specific performance of personal services, and it is not just to leave TPAust to damages. Relief is refused beyond six months post-employment, as further...

Court Disposition

Declaration and limited injunction for six months post-employment in favour of plaintiff; costs to plaintiff.

Orders

  • ['Declare that the contract dated 24 July 2007 between the Plaintiff and the Defendant has not been terminated and remains on foot.' 'Until 4 October 2008, the Defendant is restrained from employment or activity in competition with the Plaintiff or its group companies as set out in the orders.' 'Until 4 October...