50003/07 BRINK'S AUSTRALIA PTY LTD v MELVILLE FRANCIS KANE
JUDGMENT
1 HIS HONOUR: This is an application for an interlocutory injunction to enforce a restraint of trade contained in a service agreement.
2 The plaintiff (Brink's) provides what is called a "cash logistics" service for customers: substantially, the transport and security of cash and valuables.
3 On 13 February 2006, Brink's employed the defendant (Mr Kane) as a business development executive. The terms of that employment are set out in a letter dated 24 January 2006 and attached standard terms and conditions (together, the service agreement).
4 In substance, Mr Kane's role was to attract new business and customers to Brink's, and to service and maintain relationships with existing customers. Until about July 2006, Mr Kane shared those responsibilities with another employee, Mr Stephen Leary. Brink's restructured its operations in July 2006 and after that time, and up until the termination of his employment, Mr Kane alone had responsibility for the business development of Brink's cash logistics business in Sydney.
5 Although Mr Kane's responsibilities extended to the gaining of new business and the maintaining of existing business, it appears to be accepted that there were other employees within Brink's who had responsibility for servicing contracts once the business had been garnered and an appropriate contract made. Nonetheless, it is Brink's case that, at least for the last six months of his employment, Mr Kane was the "human face" of Brink's so far as its cash logistics customers were concerned. Without going into the detail of the affidavit evidence (not all of which was controversial), I am satisfied that there is a serious question to be tried that this is so.
6 On about 8 December 2006, Mr Kane informed his superior at Brink's, Mr Fitzgerald, that he (Mr Kane) had decided to resign. Thereafter, there were discussions and e-mails between Messrs Kane and Fitzgerald in which Mr Fitzgerald asked Mr Kane to reconsider his position, and sought to encourage him not to resign. Those entreaties were unsuccessful. By the terms of his contract, Mr Kane was required to give one month's notice. That was ultimately done on 11 December (after further entreaties) and became effective (after yet further entreaties) on 12 January 2007.
7 There is a significant body of evidence - to a substantial extent, uncontroverted - that during the period from 8 December 2006 until 12 January 2007, Mr Kane undertook a number of activities that were quite inconsistent with the express and implied obligations owed by him to Brink's pursuant to the service agreement. Those activities fall into a number of categories. For example, there is evidence that he sought to divert business opportunities from Brink's to a group of companies that for present purposes may be grouped under the name "MDS." There is evidence that he sought to solicit clients of Brink's to take their business with him to MDS; I will return in a moment to the circumstances in which Mr Kane went to MDS. There is evidence that Mr Kane sought to entice employees of Brink's to leave it and go to MDS. There is evidence that Mr Kane obtained and provided to MDS or took with him when he left, records and information of Brink's that Brink's claims were confidential, and that a reasonable person might think deserve that description.
8 Whilst all this was happening, Mr Kane put it about to his superiors and colleagues at Brink's that he was not leaving to work for a competitor in the cash logistics industry, but that he was taking a break, and was going to work in an entirely different field.
9 There is at least a serious question to be tried - indeed, having regard to the substantial amount of uncontroverted evidence, it is difficult to avoid the conclusion - that during the last six weeks of his employment, Mr Kane acted quite improperly in seeking to divert or entice customers away and to solicit fellow employees away. There is also a substantial basis for concluding that he sought to do so in an underhand and deceitful way.
10 The principal of what I have called MDS is a person known as Mr Lou Raskovic. The evidence discloses that Mr Kane had very substantial e-mail and telephone contact with Mr Raskovic over the period from 8 December 2006 to 12 January 2007. Mr Kane sought to delete these and other e-mails from his computer, but a number of them have been retrieved from the server and put in evidence.
11 Mr Kane's explanation of his having acted in what, on the face of it, was an underhand way in concealing from his superiors and colleagues at Brink's his intention to work with MDS is less than convincing. He says that in late November 2006 he had had a conversation with a fellow employee, Mr Plant. Mr Kane says that he asked Mr Plant if he had heard of MDS, and Mr Plant, referring to its principal, Mr Raskovic, said he is "a crook ... a straight crook." That, according to Mr Kane, caused Mr Kane "to feel I must not let anyone in Brink's learn that I was considering moving to MDS." I have to say that I regard that explanation, even on an interlocutory application, as less than convincing. Certainly, to the extent it is relevant to consider Mr Kane's activities and nature, I do not regard it as sufficient to persuade me from the tentative view that his activities were deceitful and underhand.
12 It is necessary to pay attention to the relevant terms of the service agreement. There was a "restraint of trade" in the following terms:
" Restraint of Trade
In the event that your employment is terminated, you shall not (without the prior written approval of Brink's) for a period of 3 months after the date of termination of employment:
a) canvass, solicit, interfere with or entice away any person, firm or company who shall at any time during your employment have been in the habit of being a client or employee of Brink's; and or
b) be an employee of, contractor to, advisor to, or consultant to any person, firm or company who shall at any time during your employment have been in the habit of being a client of Brink's.
c) be an employee of a person, firm or company where you are performing substantially similar functions or duties with Brink's.
You agree that the restraints set out in this clause are reasonable as to the extent, area and duration, go no further than is required to protect Brink's business interests and investment in its employees, and do not restrict your right to carry on your profession or trade."
13 There was also an obligation of confidentiality in the following terms: