Gibney & Gunson Inc v Stewart

In the case of Gibney & Gunson Inc v Stewart, the plaintiff, an accounting firm, sought an interlocutory injunction against the defendant, a former employee, to prevent him from breaching a restraint of trade clause in his employment contract. The clause prohibited the defendant from acting for any clients or customers of the plaintiff for a specified period after his employment ended. The matter was heard in the Supreme Court of Queensland.

The primary legal issue before the court was whether the restraint of trade clause was reasonable and enforceable, given the defendant's potential to compete with the plaintiff's business. The court had to consider the nature of the defendant's role, the proprietary information he had access to, and the legitimate interests of both parties. The court also had to determine whether the duration and geographical scope of the restraint were reasonable.

The court found that the restraint of trade clause was reasonable and enforceable. It noted that the defendant had access to confidential information and had developed relationships with the plaintiff's clients, which could be exploited if he entered into direct competition. The court emphasised the importance of protecting the plaintiff's legitimate business interests, including its goodwill and reputation. The court also considered the defendant's ability to find alternative employment and concluded that the restraint was necessary to protect the plaintiff's business. Consequently, the court granted the plaintiff's application for an interlocutory injunction.

The court ordered the defendant to refrain from acting for any clients or customers of the plaintiff until the final determination of the case. The defendant was also required to return any confidential information or documents related to the plaintiff's business. The injunction was intended to preserve the status quo and prevent irreparable harm to the plaintiff's business until the matter could be fully heard and determined.