FNET v Laksanabencharong

The matter before the court involved a dispute between FNET and Laksanabencharong concerning the termination of a sub-contract. The court was tasked with determining whether the termination was lawful and if the restraint clause included in the sub-contract was valid and enforceable. The case was heard in the Supreme Court of New South Wales.

The key issues before the court were whether there was a breach of the sub-contract terms by the respondent, whether the restraint clause was enforceable, and if the restraint clause lacked consideration. Additionally, the court needed to consider whether the restraint was reasonable and if damages could serve as an adequate remedy, and whether interlocutory relief should be granted. The court had to examine the evidence and arguments presented by both parties to address these issues.

In its decision, the court found that the respondent had indeed breached the sub-contract terms, and the termination by the applicant was justified. The court also held that the restraint clause in the sub-contract was not supported by consideration and was therefore unenforceable. The court considered the reasonableness of the restraint, finding that it was not reasonable given the circumstances. The court further determined that damages would not be an adequate remedy in this case. Consequently, the court granted interlocutory relief in favour of the applicant.

The final orders of the court included the enforcement of the termination of the sub-contract, the declaration that the restraint clause was unenforceable, and the granting of interlocutory relief to the applicant. The court directed that the respondent refrain from engaging in certain activities as specified in the order. The decision provided clarity on the enforceability of restraint clauses and the appropriate remedies in such cases.