Jupiter Pty Limited Trading as Globus Group of Companies v CEH

Jupiter Pty Limited, trading as Globus Group of Companies, appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation and enforceability of a restraint of trade clause contained within an employment agreement between Jupiter and its former employee, CEH.

The primary legal issue before the Court of Appeal was whether the restraint of trade clause, which sought to prevent CEH from engaging in competitive activities for a specified period and within a defined geographical area after the termination of his employment, was reasonable and therefore legally enforceable. This involved considering whether the clause went beyond what was necessary to protect Jupiter's legitimate business interests.

The Court of Appeal applied the established legal principles governing restraints of trade, which require such clauses to be reasonable as between the parties and not contrary to public policy. It considered the nature of Jupiter's business, the scope of CEH's former responsibilities, and the potential impact of CEH's future activities on Jupiter's goodwill and confidential information. The Court found that the restraint, as drafted, was wider than necessary to protect Jupiter's legitimate interests and was therefore void as an unreasonable restraint of trade.

Consequently, the Court of Appeal allowed the appeal, setting aside the Supreme Court's earlier decision and holding that the restraint of trade clause was unenforceable.