Platinum Logistics Pty Ltd v Platinum Freight Management Pty Ltd

Platinum Logistics Pty Ltd (the applicant) sought an interlocutory injunction against Platinum Freight Management Pty Ltd (the respondent) to restrain alleged breaches of a restraint of trade clause contained within a Share Sale Agreement (SSA). The dispute arose from the respondent's alleged solicitation of the applicant's clients following the sale of a business. The application was heard in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the applicant had established a strong enough case to warrant the grant of an interlocutory injunction. This involved determining whether the restraint of trade clause in the SSA was reasonable and enforceable, and whether the respondent's conduct constituted a breach of that clause. The Court also had to consider the balance of convenience and whether damages would be an adequate remedy for the applicant.

In her judgment, Justice Condon considered the principles governing the grant of interlocutory injunctions, including the need for a serious question to be tried and the balance of convenience. Her Honour analysed the scope and duration of the restraint of trade clause, assessing its reasonableness in protecting the legitimate business interests of the applicant. The Court found that the applicant had demonstrated a strong prima facie case that the respondent had breached the restraint of trade clause by soliciting clients. The balance of convenience favoured the grant of an injunction, as the potential damage to the applicant's business was difficult to quantify and the respondent's business was not significantly impacted by the injunction.

Consequently, Justice Condon granted the interlocutory injunction sought by the applicant, restraining the respondent from soliciting the applicant's clients for the duration of the proceedings.