Fletcher Aluminium Ltd v O'Sullivan
Fletcher Aluminium Ltd v O'Sullivan [2001] 2 NZLR 731 is a cited case in New Zealand regarding that a restrictive covenant in a business sale may be enforceable even if there is no goodwill involved.[1]
| Fletcher Aluminium Ltd v O'Sullivan | |
|---|---|
 | |
| Court | Court of Appeal of New Zealand |
| Full case name | Fletcher Aluminium Ltd v Sean Francis O'Sullivan |
| Decided | 15 February 2001 |
| Citation(s) | [2001] 2 NZLR 731 |
| Transcript(s) | Court of Appeal judgment |
| Court membership | |
| Judge(s) sitting | Gault J, Keith J, Tipping J |
Background
O'Sullivan developed some aluminum windows. Fletcher Aluminium, interested in the designs, entered into an agreement with him to purchase the designs for $1.7 million, as well as giving him a job as a franchise manager. Part of the agreement included a restraint of trade clause.
Later, O'Sullivan undertook employment from a rival firm, and Fletchers sought to enforce the restraint of trade agreement.
Held
The court granted the restraint of trade injunction.
References
- Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. 317. ISBN 0-86472-555-8.
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