STENHOUSE AUSTRALIA LTD. v. PHILLIPS

[1974] 1 Lloyd's Rep. 1

PRIVY COUNCIL

Before Lord Reid, Lord Morris of Borth-Y-Gest, Lord Wilberforce, Lord Simon of Glaisdale and Sir Garfield Barwick

Master and servant - Restraint of trade - Period of restraint - Reasonableness - Restraint for five years after termination of employment - Insurance brokers - Prohibition on employee soliciting former employer's clients - "Clients" narrowly defined - Test for determining whether period reasonable - Question to be determined by Judge - Determination by Judge after informing himself of all relevant circumstances. Trade - Restraint of trade - Master and servant - Clause not expressed to be in restraint of trade - Provision for payment of money - Duty of Court to have regard to likely effect of provision - Provision clearly operating in restraint of trade - Provision to be treated as being in restraint of trade.