Mann v Eccott

In *Mann v Eccott*, the New South Wales Court of Appeal considered a dispute between a former employee, Mr. Mann, and his former employer, Eccott and others. The core of the disagreement concerned the alleged breach of a restrictive covenant contained within Mr. Mann's employment contract, which sought to prevent him from engaging in competitive activities following his departure from the company.

The Court of Appeal was tasked with determining whether the restrictive covenant was valid and enforceable. Specifically, it had to consider whether the covenant went beyond what was reasonably necessary to protect the legitimate business interests of the employer, and whether it imposed an unreasonable restraint on Mr. Mann's ability to earn a living. The central legal question was the enforceability of the covenant in light of public policy considerations regarding restraints of trade.

The Court applied established principles of contract law concerning restraints of trade. It reasoned that for such covenants to be valid, they must be no wider than is reasonably necessary to protect the employer's proprietary interests, such as trade secrets or customer connections. The Court found that the covenant in question was overly broad in its geographical scope and duration, and therefore went beyond what was reasonably required to protect Eccott's legitimate business interests. Consequently, the Court held that the restrictive covenant was void as an unreasonable restraint of trade.