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Employees who breached restraints lose appeal over damages
The Federal Court has dismissed an appeal by two employees who were ordered to pay a former employer $270k in damages, after breaching their contractual restraints and soliciting its clients.
The case clarifies how courts assess the damage caused by restraint breaches, in circumstances where a former employer's losses are essentially hypothetical.
The two employees joined Monarch Advisory Services in 2018, signing contracts with restraint clauses barring them from soliciting the employer's clients for 12 months post-employment.
The employer had initially planned for them to become equity partners and launch a new branch for its business, but after that didn't eventuate the employees incorporated their own company...
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