Rosier Fuel Injection Service Pty Ltd v Thompson

In *Rosier Fuel Injection Service Pty Ltd v Thompson*, the New South Wales Court of Appeal considered a dispute between Rosier Fuel Injection Service Pty Ltd (the appellant) and Mr Thompson (the respondent). The case concerned the appellant's claim for damages arising from the respondent's alleged breach of a restraint of trade clause contained within an employment contract.

The central legal issue before the Court of Appeal was whether the restraint of trade clause was reasonable and therefore enforceable. Specifically, the court had to determine if the geographical scope and duration of the restraint imposed on the respondent were no wider than necessary to protect the legitimate business interests of the appellant.

The Court of Appeal found that the restraint of trade clause was unreasonable and therefore void. Applying established legal principles, the court reasoned that the appellant had failed to demonstrate that the restraint was necessary to protect its proprietary interests, such as trade secrets or customer connections. The court considered the nature of the appellant's business and the respondent's role within it, concluding that the broad geographical reach and lengthy duration of the restraint extended beyond what was reasonably required to prevent unfair competition. Consequently, the appeal was dismissed.