Adams & Adams

Adams & Adams concerned a dispute between the applicant, Adams & Adams, and the respondent, a former employee. The applicant sought an interlocutory injunction to restrain the respondent from continuing to engage in conduct that allegedly breached confidentiality and non-solicitation clauses in their employment agreement. The matter came before Bennett J of the Supreme Court of New South Wales.

The primary legal issues before the court were whether the applicant had established a sufficient likelihood of success on the merits to warrant the grant of an interlocutory injunction, and whether the balance of convenience favoured granting such relief. Specifically, the court had to consider the enforceability of the restrictive covenants in the employment agreement and whether the respondent's alleged actions constituted a breach of those covenants.

Bennett J applied the principles governing the grant of interlocutory injunctions, including the need to demonstrate a serious question to be tried and that damages would not be an adequate remedy. The court considered the terms of the employment agreement, the nature of the applicant's business, and the respondent's alleged conduct in soliciting former clients. The judge weighed the potential harm to the applicant if the injunction were not granted against the potential prejudice to the respondent if it were.

The court ultimately granted the interlocutory injunction, finding that the applicant had established a sufficient likelihood of success and that the balance of convenience favoured the grant of relief. The injunction was framed to restrain the respondent from soliciting or dealing with clients of the applicant with whom the respondent had dealings during his employment.