WOOLWORTHS LIMITED v Mark Konrad OLSON [2004] NSWCA 372

WOOLWORTHS LIMITED v Mark Konrad OLSON [2004] NSWCA 372

The restraint clause, although broad, could be enforced under s4(1) of the Restraints of Trade Act 1976 to the extent it stopped Olson from working for Franklins or other supermarket competitors of Woolworths for six months in Australia, with the restraint payment mitigating any hardship. The clause was not void for uncertainty nor against public policy when enforced to this extent. The appeal was upheld and an injunction in these reasonable terms was granted.

Jurisdiction
Australia
Judgment Date
06 October 2004
Procedural Posture
Appeal / Decision on Appeal
Outcome
appeal upheld
Legal Topics
['restraint of Trade' 'injunctions' 'enforceability of Restraint Clauses' 'restraints of Trade Act 1976' 'employment Contracts' 'public Policy']
['employment Law' 'contract Law'] ['restraint of Trade' 'injunctions' 'enforceability of Restraint Clauses' 'restraints of Trade Act 1976' 'employment Contracts' 'public Policy']

Case Brief

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Procedural Posture

Appeal / Decision on Appeal

Legal Issues

  1. 1 ['Whether the restraint of trade clause in the employment contract is invalid for being unreasonable or uncertain' 'Whether the restraint can be enforced or read down under s4(1) Restraints of Trade Act 1976' 'Whether the injunction sought is justified and consistent with public policy']

Ratio Decidendi

The restraint clause, although broad, could be enforced under s4(1) of the Restraints of Trade Act 1976 to the extent it stopped Olson from working for Franklins or other supermarket competitors of Woolworths for six months in Australia, with the restraint payment mitigating any hardship. The clause was not void for uncertainty nor against public policy when enforced to this extent. The appeal was upheld and an injunction in these reasonable terms was granted.

Court Disposition

appeal upheld

Orders

  • ['Until 12 January 2005 the respondent is restrained from directly or indirectly whether alone or otherwise and whether as an employee or otherwise from carrying on or being engaged, involved or otherwise interested in or concerned with Franklins Pty Ltd or any other supermarket business with which Woolworths Ltd...