Ivanovic & Ivanovic & Ivanovic

The proceeding concerned an application by the plaintiff, Ivanovic & Ivanovic & Ivanovic, for an interlocutory injunction to restrain the defendant, [Defendant's Name - not provided in text], from continuing to operate a business in contravention of a restrictive covenant. The plaintiff alleged that the defendant's business activities breached a clause in a contract for the sale of a business, which prohibited the defendant from engaging in a similar business within a specified radius and for a defined period. The application was heard by Lindenmayer J in the Supreme Court of Victoria.

The central legal issue before the Court was whether the restrictive covenant was enforceable. This required the Court to consider whether the covenant went no further than was reasonably necessary to protect the legitimate interests of the plaintiff, specifically the goodwill of the business it had purchased. The Court had to assess the scope of the covenant in terms of its geographical reach and duration, and determine if these limitations were proportionate to the interest being protected.

Lindenmayer J applied the established legal principles governing the enforceability of restrictive covenants in restraint of trade. His Honour considered the nature of the business sold, the area in which it operated, and the potential for competition to undermine the goodwill acquired by the plaintiff. The Court weighed the plaintiff's interest in protecting its investment against the defendant's right to earn a living. Ultimately, the Court found that the restrictive covenant, as drafted, was wider than reasonably necessary to protect the plaintiff's legitimate business interests and was therefore void as an unreasonable restraint of trade.

Consequently, the plaintiff's application for an interlocutory injunction was dismissed.