Westpac Banking Corporation v Newey
[2013] NSWSC 847
At a glance
Source factsCourt
Supreme Court of NSW
Decision date
2013-06-24
Before
Pembroke J, Spigelman J, Carter J
Catchwords
- (1973) 129 CLR 99 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24
- 26 ER 343 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5
- (2002) 240 CLR 45 Seven Network (Operations) Ltd v Warburton (No 2) [2011] NSWSC 386
Source
Original judgment source is linked above.
Catchwords
Judgment (9 paragraphs)
s - for the plaintiff Gillis Delaney Lawyers - for the defendants File Number(s): 2013/118661
Introduction 1This is an application by the plaintiff to enforce a contractual restraint against the firm of Gillis Delaney. The restraint is contained in two deeds entered into in April and May 2011 by the partners of the firm, as well as by a consultant to the firm whose name is Mr Collinge. 2The plaintiff seeks a declaration that, on its proper construction, the reference to 'Westpac' in Clause 1(d) of each deed should be taken to mean Westpac or any of its related bodies corporate within the meaning of Section 50 of the Corporations Act 2001 (Cth). In substance, it contends that 'Westpac' should be read as 'Westpac group'. In the alternative, it seeks an order for rectification to achieve the same effect. 3Clause 1 is in the following terms: 1 Obligation not to act Each of the partners of Gillis Delaney and David Collinge agree that he or she: (a) will not bring; or (b) will not otherwise aid, abet, counsel or procure the bringing of, any claim against Westpac or any of its related bodies corporate (within the meaning of section 50 of the Corporations Act 2001) on behalf of: (c) any person formerly employed by St George Bank Limited (St George) who at any time worked in what was known as the Institutional & Business Banking Division, and prior to about 1999 the Treasury & Capital Markets Division; or (d) any former employee of St George whose employment was or is terminated by Westpac at any time up to the date on which the last of the claims brought by an Applicant or Prospective Applicant is resolved by settlement or final judgment (including in respect of any appeal), other than the Applicants and the Prospective Applicants. (emphasis added) 4'Westpac' is a defined term by virtue of the way it is described as a party to the deed. According to that description, 'Westpac' is shorthand for 'Westpac Banking Corporation'. It follows, submitted Gillis Delaney, that the operation of the restraint in paragraph (d) of Clause 1 is limited to those former employees of St George whose employment was terminated by Westpac, not to those whose employment was terminated by St George. 5The distinction between St George and Westpac arises because from 1 December 2008 until 28 February 2010, St George was a wholly owned subsidiary of Westpac. From 1 March 2010, St George ceased to exist as a separate legal entity and the whole of its business was transferred to Westpac. Former employees of St George brought and threatened claims against Westpac. The employment of most of those claimants was terminated by St George. After 1 March 2010, some were terminated by Westpac.