Arabatzis & Severino & Anor

The proceeding concerned an application by the plaintiffs, Arabatzis and Severino, for an interlocutory injunction to restrain the defendant, a former employee, from breaching his employment contract. The dispute centred on allegations that the defendant had misused confidential information and solicited clients of his former employer after his resignation. The matter came before Macmillan J of the Supreme Court of Victoria.

The primary legal issues before the court were whether the plaintiffs had established a strong prima facie case that the defendant was in breach of his contractual obligations regarding confidentiality and non-solicitation, and whether the balance of convenience favoured the granting of an interlocutory injunction. The court was required to consider the scope and enforceability of the restrictive covenants within the employment agreement and the potential for irreparable harm to the plaintiffs' business if the injunction was not granted.

Macmillan J applied the principles governing the grant of interlocutory injunctions, including the requirement for a serious question to be tried and the consideration of the balance of convenience. The court found that the plaintiffs had demonstrated a strong prima facie case of breach of contract, particularly concerning the misuse of confidential information and the solicitation of clients. The judge reasoned that the potential damage to the plaintiffs' business, including loss of goodwill and competitive advantage, was significant and difficult to quantify in monetary terms, thus tipping the balance of convenience in their favour.

The court ordered that the defendant be restrained from soliciting clients of the plaintiffs and from using or disclosing any confidential information obtained during his employment, pending the final determination of the proceedings.