Sidameneo (No 456) Pty Ltd v Alexander

The appeal concerned a dispute between Sidameneo (No 456) Pty Ltd and Alexander, heard by the New South Wales Court of Appeal. The core of the disagreement revolved around the enforceability of restrictive covenants contained within a contract, and whether Alexander had tortiously interfered with a contract.

The Court of Appeal was required to determine whether Sidameneo possessed a legitimate proprietary or commercial interest that warranted protection through the restrictive covenants. This involved considering whether the goodwill held by each party needed to be in the same industry for protection and whether the covenants themselves were reasonable. Furthermore, the Court had to assess whether Alexander was liable for tortious interference with a contract, specifically in circumstances where a party believes a contract has ended.

The Court found that Sidameneo did have a legitimate proprietary interest to protect, and that the restrictive covenants, imposing a usual minimum restriction of one year and three kilometres, were prima facie reasonable. Regarding the claim for damages due to breach of the restrictive covenant, the Court determined that no loss had been demonstrated by the operator of the medical centre, and therefore no damages were awarded. On the issue of tortious interference, the Court held that a party is not liable if they reasonably believe a contract has come to an end, or if they are unaware of the contract's existence.

The appeal was dismissed, with the exception of the question of costs below, which was reserved. Sidameneo was ordered to pay the respondents' costs of the appeal, and further submissions were to be filed regarding the costs issues. The decision on costs below was to be dealt with on the papers.