Finite Recruitment Pty Ltd v Spain

Case [2009] FCA 1600


FEDERAL COURT OF AUSTRALIA

Finite Recruitment Pty Ltd v Spain [2009] FCA 1600

FINITE RECRUITMENT PTY LTD (ACN 085 406 300) v MIKE SPAIN

NSD 1646 of 2008

LINDGREN J
13 NOVEMBER 2009
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1646 of 2008

BETWEEN:

FINITE RECRUITMENT PTY LTD
(ACN 085 406 300)
Applicant

AND:

MIKE SPAIN
Respondent

JUDGE:

LINDGREN J

DATE OF ORDER:

13 NOVEMBER 2009

WHERE MADE:

SYDNEY

THE COURT NOTES THAT

1.The applicant has not filed a notice of discontinuance.

THE COURT ORDERS THAT

2.The applicant be relieved from any consequences of the non-filing of the notice of discontinuance.

3.The proceeding be reinstated to the intent that it be on foot as a current proceeding.

4.The respondent pay the applicant a sum of $20,534.82 representing the applicant’s legal costs of $22,401.62 less one payment made of $1,866.80.

5.The respondent pay interest on the sum of $20,534.82 from 2 September 2009 until today’s date at the rate for the time being fixed under s 2 of the Penalty Interest Rates Act 1983 (Victoria).

6.The respondent pay the applicant’s costs of and incidental to the motion brought by notice of motion filed on 2 September 2009 calculated on a full indemnity basis.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


The text of entered orders can be located using eSearch on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1646 of 2008

BETWEEN:

FINITE RECRUITMENT PTY LTD
(ACN 085 406 300)
Applicant

AND:

MIKE SPAIN
Respondent

JUDGE:

LINDGREN J

DATE:

13 JANUARY 2010

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. This is a record of the reasons why I made the orders on 13 November 2009 that appear at the front of these reasons.

  2. By its application filed on 17 October 2008 the applicant, Finite Recruitment Pty Ltd (Finite), applied for orders restraining the respondent (Mr Spain), a former employee of Finite, from disclosing confidential information and soliciting Finite’s customers.

  3. On 20 November 2008 Finkelstein J ordered that the proceeding “be discontinued with a right of reinstatement” and that there be no order as to costs.  Those orders were made by consent in accordance with short minutes of orders signed by the solicitor for Finite and by Mr Spain.

  4. The orders were made pursuant to Terms of Settlement dated 8 November 2008.  By para 2 of that document, in consideration of Finite’s undertaking to discontinue the proceeding, Mr Spain undertook to pay Finite’s legal costs of $22,401.62.  By para 3 Mr Spain undertook to pay that amount by 12 monthly instalments of $1,866.80 on the 11th day of each month from and including December 2008 to and including November 2009.

  5. By paras 8 –11 of the Terms of Settlement, it was, in general terms, agreed that if Mr Spain should default, Finite should be entitled to apply for and obtain by consent certain orders including, as the first order, an order that the proceeding be “reinstated”.

  6. Mr Spain defaulted.

  7. By notice of motion filed on 2 September 2009 Finite sought orders pursuant to paras 8 – 11 of the Terms of Settlement.

  8. Mr Spain filed a notice of appearance on 3 September 2009.  He appeared in person, that is to say, he was not legally represented.

  9. The affidavit of Jennifer Louise Gearing sworn 31 August 2009 showed that Mr Spain had made only one of the 12 monthly payments.  Her affidavit, to which a copy of Terms of Settlement was annexed also supported the other orders that I made on 13 November 2009.

  10. On the hearing of the motion Mr Spain “appeared” by telephone.  He did not dispute that he had defaulted or that Finite was entitled to the orders that it was seeking.  Rather, Mr Spain said that his financial circumstances had caused him to default.

I certify that the preceding ten (10) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Lindgren.

Associate:

Dated:        13 January 2010

Solicitors for the Applicant: Mr D J Hand, solicitor, agent for
Wood Fussell Solicitors
The Respondent appeared in person by telephone.
Date of Hearing: 13 November 2009
Date of Judgment: 13 November 2009
Date of Publication of Reasons: 13 January 2010
Details
AGLC
Finite Recruitment Pty Ltd v Spain [2009] FCA 1600
Case
[2009] FCA 1600
Decision Date

CaseChat Overview and Summary

Finite Recruitment Pty Ltd (Applicant) sought to restrain Mike Spain (Respondent) from disclosing confidential information and soliciting Finite's customers. The dispute arose from Mr Spain's employment with Finite and the terms of his departure. The matter was heard in the Federal Court of Australia, New South Wales District Registry, General Division.

The central legal issues the court had to address were whether Mr Spain had breached the terms of the settlement agreement by failing to make the agreed monthly payments, and if so, whether Finite was entitled to the relief sought under the agreement, including reinstatement of the proceeding and payment of costs. The primary focus was on the interpretation and enforcement of the settlement agreement terms.

The court examined the settlement agreement, which included provisions for the payment of Finite's legal costs by Mr Spain and the right for Finite to reinstate the proceeding if Mr Spain defaulted. Mr Spain admitted to defaulting on his payment obligations. The court found that Mr Spain's financial difficulties did not excuse his failure to meet the payment terms as agreed. Justice Lindgren concluded that Finite was entitled to the orders sought under the terms of the settlement agreement. The court ordered the reinstatement of the proceeding, the payment of Finite's legal costs, and interest on the unpaid costs from a specified date.

In summary, the court granted Finite's application to reinstate the proceeding and ordered Mr Spain to pay Finite's legal costs, including interest. The court also ordered that Finite be relieved from any consequences of the non-filing of the notice of discontinuance.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

LINDGREN J

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Ratio Decidendi

Legal Principle Established

Established by: LINDGREN J

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