Deniz & Anor & Yilmaz

The proceeding concerned an application by the plaintiffs, Deniz and Yilmaz, 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 matter came before Carew J in the Supreme Court of New South Wales.

The primary legal issues before the Court 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.

Carew J applied the principles governing the grant of interlocutory injunctions, requiring the plaintiffs to demonstrate a serious question to be tried and that damages would not be an adequate remedy. The Court considered the evidence presented regarding the nature of the confidential information and the extent of the defendant's dealings with former clients. His Honour found that the plaintiffs had established a strong prima facie case of breach of contract, particularly concerning the misuse of confidential information and the solicitation of clients, and that the potential harm to the plaintiffs' business could not be adequately compensated by damages.

Consequently, Carew J granted the interlocutory injunction sought by the plaintiffs, restraining the defendant from further breaching his employment contract pending the final determination of the proceedings.