Commsupport Pty Ltd v Mirow

Commsupport Pty Ltd brought a claim against Mirow for breaches of post-employment restraints contained in his employment contract. The parties had engaged in trade and commerce, and the employment contract included restraints on trade designed to protect the employer's business interests. The primary legal issue was whether the restraints were valid and reasonable in scope, particularly considering the evidence that Mirow could not have developed a protectible customer relationship with all clients within the restraint period. Another issue was whether the restraints exceeded a legitimate protectible interest of the employer and whether they offended the public interest in competition. The court also had to consider whether Mirow breached the restraints and the appropriate assessment of damages.

The court held that the restraints were not valid as they were overly broad, capturing all clients within six months before termination. It found that Mirow could not have had interactions with all these clients to develop a protectible customer relationship, making the restraints unreasonable. The inequality of bargaining power at the time of contract formation further undermined the restraints' validity. The court determined that the restraints exceeded a legitimate protectible interest and offended the public interest by excessively restricting Mirow's ability to compete in the industry. Consequently, the court dismissed the plaintiff's claim. The parties were directed to submit written submissions on costs within 14 days.