BGC Partners (Australia) Pty Ltd v Lambert

The respondents, Lambert and his associates, brought an action against BGC Partners (Australia) Pty Ltd, a fixed interest securities broker, seeking declarations that certain non-compete clauses in their employment contracts were unreasonable, unenforceable and invalid. Lambert also sought injunctive relief to restrain BGC from enforcing the non-compete clauses, as well as damages and an account of profits for alleged breaches of those clauses. The dispute came before the Federal Court of Australia for resolution.

The court was required to decide whether the non-compete clauses were unreasonable, unenforceable and invalid, as well as whether Lambert had established a prima facie case for injunctive relief. The court also needed to consider whether Lambert had demonstrated that the balance of convenience lay in favour of granting the injunction. Additionally, the court had to assess whether the injunctive relief sought by Lambert was proportionate to the harm he would suffer if the relief was not granted.

The court found that the non-compete clauses were not unreasonable, unenforceable or invalid. However, it also found that Lambert had established a prima facie case for injunctive relief. The court considered the balance of convenience to lie in favour of Lambert, as the potential harm to him if the injunction was not granted outweighed the potential harm to BGC if the injunction was granted. The court granted the injunction, but did so on terms that it would not operate until a later date to allow BGC to make alternative arrangements for the protection of its business interests. The court also ordered Lambert to pay 50% of BGC’s costs of the proceedings.