Fletcher Aluminium Ltd v O'Sullivan
CourtCourt of Appeal of New Zealand
Full case nameFletcher Aluminium Ltd v Sean Francis O'Sullivan
Decided15 February 2001
Citation(s)[2001] 2 NZLR 731
Transcript(s)Court of Appeal judgment
Court membership
Judge(s) sittingGault J, Keith J, Tipping J

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]

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

  1. ↑ 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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