Skillsearch Contracting Pty Ltd v Geoffrey Drury

Skillsearch Contracting Pty Ltd, a company involved in the construction industry, brought an application against Geoffrey Drury, its former employee, alleging breaches of a post-employment restraint of trade clause in his employment contract. The matter was heard in the Supreme Court of New South Wales. The company sought an interlocutory injunction to restrain Drury from engaging in activities that would breach the non-competition clause, as well as damages for any losses incurred due to the breach.

The primary legal issues before the court were whether the non-competition clause in Drury's employment contract was reasonable and enforceable, and whether the court should grant an interlocutory injunction to prevent further breaches. The enforceability of the restraint of trade clause hinged on whether it was necessary to protect the legitimate business interests of the company and whether it was reasonable in scope, geography, and duration. The court also had to consider the balance of convenience in determining whether an interlocutory injunction should be granted.

The court found that the non-competition clause was necessary to protect the legitimate business interests of Skillsearch Contracting Pty Ltd, as it was designed to prevent Drury from competing with the company by offering similar services to the company’s clients. The court determined that the clause was reasonable in its scope, geography, and duration, given that it limited Drury’s activities for a period of six months within the Sydney metropolitan area. The court also found that the balance of convenience favoured granting the interlocutory injunction, as the company would suffer significant harm if Drury continued to breach the clause without any effective remedy. Therefore, the court granted the application for an interlocutory injunction and ordered Drury to refrain from engaging in activities that would breach the non-competition clause in his employment contract.