Lynkonex Pty Ltd v Graeme Edwin (A) Strang

Lynkonex Pty Ltd (the applicant) sought an interlocutory injunction against Graeme Edwin (A) Strang (the respondent) to restrain him from continuing to operate a business that allegedly breached a restraint of trade clause in an employment agreement. The application was heard in the Supreme Court of Victoria.

The central legal issue before the Court was whether the applicant had established a sufficient likelihood of success on the merits to warrant the grant of an interlocutory injunction. This required the Court to consider the enforceability of the restraint of trade clause, specifically whether it was reasonable in its scope, duration, and geographical area, and whether it went no further than was necessary to protect the legitimate business interests of the applicant.

In determining the matter, Judge Street applied the principles governing interlocutory injunctions, including the need for a serious question to be tried and the balance of convenience. His Honour considered the nature of the applicant's business and the respondent's role within it, as well as the potential harm to the applicant if the restraint was not enforced pending a final determination. The Court also had regard to the public interest in upholding contracts and the potential prejudice to the respondent if the injunction was granted.

The Court ultimately refused to grant the interlocutory injunction, finding that the applicant had not demonstrated a sufficient likelihood of success on the merits to justify the extraordinary remedy of an injunction at this interlocutory stage. The application was dismissed.