Australian Regional Wholesalers v Stafford

The parties involved in the case were Australian Regional Wholesalers and Stafford. The dispute centred around an employment contract and the enforceability of certain restrictive covenants, specifically non-solicitation and non-competition clauses. The matter was heard in the Supreme Court of Victoria.

The legal issues the court was required to address were whether there had been any breach or threatened breach of a non-solicitation provision, whether the non-solicitation clause was more than adequate, and if the term of the restraint should be read down under the Restraints of Trade Act 1976, s 4(1). Additionally, the court considered whether non-solicitation undertakings to the court were sufficient, and if a non-competition provision to protect confidential information was excessive when the information was too voluminous to be carried away in the head of an employee and there was no suggestion that the employee took copies.

The court concluded that there had been a breach of the non-solicitation clause by Stafford. It held that the non-solicitation undertakings to the court were sufficient and that the non-competition provision was not excessive given the nature of the confidential information. The court further found that the non-solicitation clause was more than adequate and that it should not be read down under the Restraints of Trade Act 1976, s 4(1). Therefore, the restraint was enforceable.

As a result of the court's findings, it ordered that the non-solicitation clause in the employment contract between Australian Regional Wholesalers and Stafford was valid and enforceable, and that Stafford was bound by the terms of the non-solicitation undertakings provided to the court.