Premprop Sales Neutral Bay Pty Ltd atf Neutral Bay Sales Unit Trust t/a Belle Property Neutral Bay v Davies

The plaintiff, Premprop Sales Neutral Bay, acting on behalf of the Neutral Bay Sales Unit Trust trading as Belle Property Neutral Bay, sought interlocutory relief in the form of an injunction against the defendant, Davies. The plaintiff claimed that Davies, a former employee, had breached his employment contract by engaging in activities that were in restraint of trade. The court had to determine whether to grant an interlocutory injunction pending the resolution of the case.

The key legal issues before the court involved whether there was a serious question to be tried regarding the breach of the restraint of trade clause and whether the balance of convenience favoured the granting of interlocutory relief. The plaintiff argued that the defendant's actions posed a significant threat to their business interests and that an interlocutory injunction was necessary to prevent irreparable harm. The defendant contended that the restraint of trade clause was unreasonable and unenforceable and that the plaintiff had not demonstrated a likelihood of success on the merits.

The court held that there was a serious question to be tried regarding the enforceability of the restraint of trade clause and the defendant's conduct. The court found that the restraint of trade clause was reasonable in its scope, geographical limitations, and duration. The court also considered the balance of convenience and concluded that it favoured granting the interlocutory injunction. The court determined that the plaintiff had shown a significant risk of irreparable harm if the injunction was not granted and that the defendant's potential harm was not sufficient to outweigh this risk.

Accordingly, the court granted the plaintiff's application for an interlocutory injunction, restraining the defendant from engaging in certain activities that were in breach of the restraint of trade clause. The court ordered that the defendant must cease and desist from the specified activities pending the final determination of the case.