CASTRO & HOWDEN

This matter concerned an application by the plaintiffs, Castro and Howden, 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 the plaintiffs after his employment had terminated.

The primary legal issues before Jones J were whether the plaintiffs had established a strong prima facie case that the defendant was in breach of his contractual obligations, and whether the balance of convenience favoured the granting of an interlocutory injunction. Specifically, the court had to consider the scope and enforceability of the restrictive covenants contained within the employment agreement, and whether the defendant's actions constituted a misuse of confidential information or an improper solicitation of clients.

In reaching its decision, the court 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. Jones J found that the plaintiffs had demonstrated a strong prima facie case of breach of contract, particularly concerning the misuse of confidential information. The court also determined that the balance of convenience favoured the granting of the injunction, as the potential harm to the plaintiffs from continued breaches outweighed the potential prejudice to the defendant.

The court ordered that an interlocutory injunction be granted, restraining the defendant from soliciting the plaintiffs' clients and from using or disclosing the plaintiffs' confidential information for a period of 12 months from the date of termination of his employment.