McLeod v Pacific Waste Management (NSW) Pty Ltd

In *McLeod v Pacific Waste Management (NSW) Pty Ltd* [1991] NSWCA 299, the New South Wales Court of Appeal considered a dispute between the appellant, McLeod, and the respondent, Pacific Waste Management (NSW) Pty Ltd. The case concerned the interpretation and enforceability of a restraint of trade clause within an employment contract.

The central legal issue before the Court of Appeal was whether the restraint of trade clause, which sought to prevent McLeod from engaging in a competing business for a specified period and within a defined geographical area after his employment ceased, was reasonable and therefore legally enforceable. This required the court to assess the scope of the restraint in relation to the legitimate business interests of Pacific Waste Management and the public interest.

The Court of Appeal applied established legal principles governing restraints of trade, which are presumed to be void as contrary to public policy unless they can be shown to be reasonable. The court considered the nature of the business, the employee's role and access to confidential information or client relationships, and the geographical and temporal scope of the restriction. The court found that the restraint, as drafted, was wider than necessary to protect the respondent's legitimate interests and was therefore unreasonable and unenforceable.

Consequently, the Court of Appeal allowed the appeal, setting aside the orders of the lower court and finding that the restraint of trade clause was void.