Miles v Genesys Wealth Advisers Ltd

The dispute in *Miles v Genesys Wealth Advisers Ltd* concerned the enforceability of post-employment restraints of trade. The appellant, Mr Miles, was an employee of the respondent, Genesys Wealth Advisers Ltd, a financial planning firm. Upon termination of his employment, Mr Miles was subject to covenants preventing him from engaging in a competitive business and dealing with certain clients for a period of 30 months. Mr Miles challenged the validity of these covenants. The matter was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine whether the restraint of trade clauses were valid and enforceable. Specifically, the court considered whether the proscribed business was sufficiently defined, whether the term "clients" included certain agents of the employer, and whether the 30-month restraint period was excessive. The court also had to consider whether the confidential information relied upon by the employer needed to be identified with precision for the restraint to be valid.

The Court of Appeal reasoned that the restraint was designed to protect Genesys' legitimate business interests, namely its confidential information and client relationships. While the precise identification of all confidential information was not required, the description of the proscribed business needed to be sufficiently clear to inform the employee of the scope of the restriction. The court found that the definition of "clients" was broad enough to encompass certain agents, and that the 30-month period was not inherently excessive given the nature of the financial planning industry. However, the court did vary one of the restraint clauses to clarify the scope of the prohibited business.

Consequently, the appeal was largely dismissed, with the court varying the original order by substituting a more precise definition for the proscribed business. The appellant was ordered to pay the respondent's costs of the appeal.