Verint Systems (Australia) Pty Ltd v Sutherland [2019] NSWSC 882

Verint Systems (Australia) Pty Ltd v Sutherland [2019] NSWSC 882

The interlocutory non-compete restraint is enforceable only for a short further period, given the plaintiff's arguable but contestable case and significant potential hardship to the defendant; existing undertakings as to confidentiality and non-solicitation are robust and sufficient interim protection. The public interest does not warrant enforcing the non-competition restraint beyond approximately ten weeks.

Jurisdiction
Australia
Judgment Date
26 July 2019
Procedural Posture
Interlocutory Application / Interlocutory Orders, Referred to Expedition List
Outcome
Interlocutory orders granted in part; temporary restraint and undertakings enforced; matter referred to Expedition List.
Legal Topics
['restraint of Trade' 'non Solicitation Covenants' 'confidential Information' 'interlocutory Injunctions' 'enforcement of Employment Agreement Restraints']
['employment Law' 'equity' 'contract Law'] ['restraint of Trade' 'non Solicitation Covenants' 'confidential Information' 'interlocutory Injunctions' 'enforcement of Employment Agreement Restraints']

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Procedural Posture

Interlocutory Application / Interlocutory Orders, Referred to Expedition List

Legal Issues

  1. 1 ['Whether the post-employment non-compete restraint is enforceable' 'Whether the plaintiff’s legitimate business interests warrant enforcement of the restraint' 'Adequacy of protection by non-solicitation and confidentiality covenants']

Ratio Decidendi

The interlocutory non-compete restraint is enforceable only for a short further period, given the plaintiff's arguable but contestable case and significant potential hardship to the defendant; existing undertakings as to confidentiality and non-solicitation are robust and sufficient interim protection. The public interest does not warrant enforcing the non-competition restraint beyond approximately ten weeks.

Court Disposition

Interlocutory orders granted in part; temporary restraint and undertakings enforced; matter referred to Expedition List.

Orders

  • ['Plaintiff’s undertaking as to damages noted.' 'Plaintiff’s payment of $38,913 bonus to defendant on 12 July 2019 noted.' 'Defendant’s undertakings to comply with confidentiality and non-solicitation restraints noted.' 'Defendant restrained from commencing employment with NICE Systems Australia Pty Ltd until 4...