Colville v Colville

Mathew Colville commenced proceedings against his brother, Adam Colville, and Peter Blight, alleging breach of contract and inducement to breach. The dispute arose after Adam sold his shares in a residential building franchise to Mathew and executed a deed in restraint of trade. The restraint prevented Adam from engaging in a competing building business on the West Coast for two years and four months from October 2020. Despite this, Adam went to work for Peter and was closely involved in the establishment of a rival building franchise. Mathew alleged Adam's involvement amounted to a breach of the restraint and that Peter knowingly induced and encouraged this breach. Adam and Peter denied the claims. The court found Adam breached the restraint by his involvement in the establishment and development of the rival building franchise. Peter was found to have encouraged and induced Adam to breach the restraint. The court found that Mathew had suffered a loss as a result of Adam's breach and Peter's encouragement and inducement of that breach. The loss was quantified as 60 per cent of the value of the restraint that Adam had agreed to abide by when selling his shares to Mathew, amounting to $252,000. The court ordered Adam and Peter to each pay $126,000 to Mathew, together with interest, and ordered Adam and Peter to pay Mathew's costs.