Crowe Horwath (Aust) Pty Ltd v Loone

Crowe Horwath (Aust) Pty Ltd, the appellant, sought leave to appeal against a decision of the Supreme Court of Tasmania that found it had repudiated its contract with the respondent, Mr Loone, and that Mr Loone had accepted the repudiation. The dispute involved the termination of Mr Loone's employment following the acquisition of Crowe Horwath's predecessor, CHA, by Findex, and related to various alleged breaches of contract, including failure to pay bonuses, interference with Mr Loone's client relationships, and imposition of restrictive covenants. The Supreme Court found that Crowe Horwath had repudiated the contract and that Mr Loone had accepted the repudiation. Crowe Horwath applied for leave to appeal against the decision, arguing that the judge erred in finding that certain conduct amounted to a repudiatory breach, and that the judge should not have found that Crowe Horwath was unable to enforce the restrictive covenants in Mr Loone's contract.

The Court considered whether the grounds of appeal had a real prospect of success. The Court held that the judge had not erred in finding that Crowe Horwath's conduct constituted a repudiatory breach, and that the grounds relating to the restrictive covenants did not have a real prospect of success. The Court also considered whether Crowe Horwath had raised new arguments on appeal, and found that it had not. The Court held that leave to appeal should be granted on all but one ground, and dismissed the appeal.

The Court held that Crowe Horwath was not entitled to rely on the restrictive covenants in Mr Loone's contract, as it had repudiated the contract and Mr Loone had accepted the repudiation. The Court found that the restrictive covenants were not enforceable as they were unreasonable and would cause undue hardship to Mr Loone if enforced. The Court also held that Crowe Horwath's failure to pay bonuses and interference with Mr Loone's client relationships amounted to a repudiatory breach of contract. The Court dismissed Crowe Horwath's appeal and affirmed the decision of the Supreme Court of Tasmania.