Restraints of Trade following Specialist Diagnostic Services Pty Ltd (formerly Symbion Pathology Pty Ltd) v Healthscope Pty Ltd [2012] VSCA 175 (8 August 2012).
This decision of the Court of Appeal in Specialist Diagnostic Services Pty Ltd (formerly Symbion Pathology Pty Ltd) v Healthscope Pty Ltd [2012] VSCA 175, delivered in August last year, overturned the Supreme Court decision Specialist Diagnostic Services Pty Ltd v Healthscope Ltd & Ors [2010] VSC 443, in which the trial judge had found that a restraint of trade clause in the context of a lease agreement between pathology businesses and the hospitals in which they were situated was invalid.
The Court of Appeal judgment, overturning the Supreme Court decision, deals with very important issues relating to the applicability of the restraint of trade doctrine in the context of lease agreements, the appropriate criterion for ascertaining whether restraints are reasonable, and, in addition, the implied obligation of good faith. It is an important judgment for practitioners interested in the law on non-employment restraint cases.
This seminar, on 9 April 2013, will examine the decision of the Court of Appeal, and the operation of restraints of trade following the decision.