SANDERSON & MEARES

This matter concerned a dispute between Sanderson & Meares Pty Ltd and a former employee, Mr. John Meares, regarding the alleged breach of a restrictive covenant. The application was heard by Altobelli J in the Supreme Court of New South Wales.

The central legal issue before the Court was whether Mr. Meares had breached the terms of a restrictive covenant contained within his employment agreement. Specifically, the Court was required to determine if his subsequent engagement in a competing business constituted a violation of the covenant, which aimed to prevent him from soliciting clients of Sanderson & Meares for a specified period after his employment ceased.

Altobelli J considered the wording of the restrictive covenant and the nature of Mr. Meares' new employment. The Court applied the principles of contract law, focusing on the interpretation of the covenant's scope and the extent to which Mr. Meares' actions fell within its proscribed activities. The Judge found that the evidence did not establish a breach of the covenant as alleged by Sanderson & Meares, noting that the covenant was not sufficiently broad to encompass the activities undertaken by Mr. Meares in his new role.

The Court therefore dismissed the application brought by Sanderson & Meares.