Waters v PC Henderson (Australia) Pty Ltd

In *Waters v PC Henderson (Australia) Pty Ltd*, the New South Wales Court of Appeal considered a dispute between the appellant, Mr Waters, and the respondent, PC Henderson (Australia) Pty Ltd. The case concerned the interpretation and enforceability of a restraint of trade clause contained within an employment contract.

The primary legal issue before the Court was whether the restraint of trade clause, which sought to prevent Mr Waters from engaging in a competing business for a specified period after his employment ceased, was reasonable and therefore legally enforceable. This involved an assessment of the scope of the restraint, its geographical reach, and the duration, in light of the employer's legitimate business interests.

The Court applied established principles of contract law concerning restraints of trade. It considered whether the restraint went beyond what was necessary to protect PC Henderson's proprietary interests, such as confidential information or customer connections, and whether it unduly restricted Mr Waters' ability to earn a living. The Court's reasoning focused on balancing the employer's right to protect its business against the employee's right to freedom of trade.

Ultimately, the Court found that the restraint of trade clause was unreasonable and therefore void. The orders made reflected this finding, allowing Mr Waters to pursue his chosen profession without the encumbrance of the restrictive covenant.