SUPREME COURT OF QUEENSLAND
CITATION:
GBAR (Australia) Pty Ltd & Ors v Brown & Ors [2016] QSC 234
PARTIES:
GBAR (AUSTRALIA) PTY LTD ACN 166 408 635
(first applicant)
AND
BAREND JACOBUS STOLTZ
(second applicant)
AND
DANIEL PETRUS UYS
(third applicant)
AND
VINCENT CHARLES MANNING
(fourth applicant)
AND
STOLTZ SUPERANNUATION PTY LTD ACN 141 083 052
(fifth applicant)
AND
D.P. UYS SUPERANNUATION PTY LTD ACN 162 567 848
(sixth applicant)
AND
MACROCOMM (AUSTRALIA) PTY LTD ACN 166 317 764
(seventh applicant)
v
GREGORY JOHN BROWN
(first respondent)
AND
BROWN & CREMIN PTY LTD ACN 128 512 961
(second respondent)
AND
TANYA RENEE CREMIN
(third respondent)
FILE NO/S:
No 9209 of 2016
DIVISION:
Trial Division
PROCEEDING:
Application
ORIGINATING COURT:
Supreme Court at Brisbane
DELIVERED ON:
14 October 2016
DELIVERED AT:
Brisbane
HEARING DATE:
14 September 2016
JUDGE:
Peter Lyons J
ORDER:
The application is dismissed.
CATCHWORDS:
TRADE AND COMMERCE – OTHER REGULATION OF TRADE OR COMMERCE – RESTRAINTS OF TRADE – VALIDITY AND REASONABLENESS – GENERALLY – where second respondent sold asbestos removal business to first applicant – where second respondent was allotted 20% of the shares in the first applicant – where first applicant employed first respondent as General Manager under an Employment Agreement – where applicants and respondents entered into a Settlement Agreement for the sale of the 20% of shares in the first applicant to the applicants – where Settlement Agreement contained a restraint of trade clause purporting to restrain the first respondent – whether the restraint of trade clause in the Settlement Agreement sought to protect employer’s interests or goodwill of business sold
TRADE AND COMMERCE – OTHER REGULATION OF TRADE OR COMMERCE – RESTRAINTS OF TRADE – VALIDITY AND REASONABLENESS – PARTICULAR CASES – EMPLOYMENT – where second respondent sold asbestos removal business to first applicant – where second respondent was allotted 20% of the shares in the first applicant – where first applicant employed first respondent as General Manager under an Employment Agreement – where applicants and respondents entered into a Settlement Agreement for the sale of the 20% of shares in the first applicant to the applicants – where Settlement Agreement contained a restraint of trade clause purporting to restrain the first respondent – whether, assuming the restraint of trade clause in the Settlement Agreement sought to protect employer’s interests, the clause goes beyond what is reasonable to protect that interest
TRADE AND COMMERCE – OTHER REGULATION OF TRADE OR COMMERCE – RESTRAINTS OF TRADE – VALIDITY AND REASONABLENESS – PARTICULAR CASES – VENDOR OF BUSINESS – where second respondent sold asbestos removal business to first applicant – where second respondent was allotted 20% of the shares in the first applicant – where first applicant employed first respondent as General Manager under an Employment Agreement – where applicants and respondents entered into a Settlement Agreement for the sale of the 20% of shares in the first applicant to the applicants – where Settlement Agreement contained a restraint of trade clause purporting to restrain the…
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- Case
- [2016] QSC 234
- Decision Date
CaseChat Overview and Summary
The court was required to decide whether the restraint of trade clauses sought to protect the employer's interests or the goodwill of the business sold. If they were to protect the employer's interests, the court had to determine whether the restraint went beyond what was reasonable. The court also had to consider if the restraint extended to potential future expansion of the business. Furthermore, the court had to assess whether the restraint in the Employment Agreement was reasonable.
The court found that the restraint of trade clauses in both agreements sought to protect the goodwill of the business sold. The court concluded that the restraint went beyond what was reasonable to protect that interest, as it extended to potential future expansion of the business. The restraint in the Employment Agreement was also found to be unreasonable. Additionally, the court considered the applicants' delay in bringing the proceedings and the respondents' offer of an account of profits. The balance of convenience did not favour granting interlocutory relief.
The application for an injunction and damages was dismissed. The court found the restraint of trade clauses unreasonable and not in line with the principles of equity and good conscience. The court also took into account the applicants' delay in bringing the proceedings and the respondents' offer to account for profits. The court concluded that the balance of convenience did not favour the granting of interlocutory relief.
Orders
Orders of the court
The application is dismissed.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.