Young v Jacobsen

In *Young v Jacobsen*, the New South Wales Court of Appeal considered a dispute between a former employee, Mr. Young, and his former employer, Mr. Jacobsen. The core of the disagreement concerned the alleged breach of a restraint of trade clause contained within Mr. Young's employment contract.

The Court of Appeal was required to determine whether the restraint of trade clause was valid and enforceable. Specifically, the court had to assess whether the geographical scope and duration of the restraint were reasonable in protecting the legitimate business interests of the employer, Mr. Jacobsen, without unduly restricting Mr. Young's ability to earn a living.

The Court of Appeal found that the restraint of trade clause was too broad in its geographical reach and duration to be considered reasonable. Applying established legal principles regarding restraints of trade, the court held that such clauses must be no wider than necessary to protect the employer's proprietary interests, such as trade secrets or customer connections. As the clause extended beyond the area in which Mr. Young had actually worked or had dealings, and for a period that was not justified by the nature of the business, it was deemed an unreasonable restraint on trade and therefore void.