Dovuro Pty Ltd v Wilkins & Ors

Dovuro Pty Ltd (the applicant) sought leave to appeal to the High Court of Australia against a decision of the Full Court of the Supreme Court of Victoria. The dispute concerned the interpretation and enforceability of a restraint of trade clause contained within an employment agreement between Dovuro and Mr. Wilkins (the first respondent). The Supreme Court had found the restraint to be void as an unreasonable restraint of trade.

The primary legal issue before McHugh J was whether the Full Court of the Supreme Court had erred in its determination that the restraint of trade clause was unreasonable and therefore void. This required an examination of the scope and duration of the restraint, and whether it went beyond what was reasonably necessary to protect Dovuro's legitimate business interests.

McHugh J considered the principles governing restraints of trade, noting that such clauses are prima facie void unless they can be shown to be reasonable. Reasonableness is assessed by reference to the interests of the parties and the public. In this instance, McHugh J found that the restraint, as drafted, was too wide in its geographical scope and duration to be considered reasonable. The court applied established legal principles regarding the protection of trade secrets and customer connections, concluding that the restraint extended beyond what was necessary to safeguard Dovuro's proprietary interests.

Leave to appeal was refused.