Curro v Beyond Productions: Restraint of Trade in Employment Law

Curro v Beyond Productions

Case Name: Curro v Beyond Productions Pty Ltd

  • Citation: (1993) 30 NSWLR 337
  • Court: New South Wales Court of Appeal
  • Judges: Meagher JA, Handley JA, and Cripps JA
  • Date of Judgment: 7 May 1993
  • Areas of Law: Implied terms, Restraint of Trade, Equity and Injunctions, Employment Law

The case of Curro v Beyond Productions Pty Ltd (1993) 30 NSWLR 337 is a notable New South Wales Court of Appeal ruling on the legality of restraint clauses in employment contracts, particularly in the media business.

Summary Table

FactsA TV presenter breached an exclusivity clause by accepting another job without consent.
Legal IssueWhether an injunction can enforce a negative stipulation in a contract.
DecisionInjunction granted – the court upheld the exclusivity clause as enforceable.
Key ReasoningServices were “special” and damages were inadequate. Equitable remedy was justified.
ConclusionNegative covenants and reasonable restraints can be upheld in employment.

Case Overview (Curro v Beyond Productions)

In August 1991, Tracy Curro, a well-known television host, entered into an employment contract with Beyond Productions to appear on the science and technology show “Beyond 2000”. Her contract contained an exclusivity clause that prohibited her from doing any other presentation work without Beyond’s approval. Curro was offered a position on Channel Nine’s 60 Minutes in 1993, but declined to seek Beyond’s consent. As a result, Beyond Productions filed an injunction to stop her from violating the exclusivity clause.

Legal Issues

The central legal question was whether an injunction could be granted to enforce a negative stipulation in an employment contract, especially when the contract involved personal services. This raised concerns about the applicability of the doctrine from Lumley v Wagner (1852), which allows courts to enforce negative covenants in contracts for special services.

Court’s Decision in Curro v Beyond Productions

The New South Wales Court of Appeal confirmed the injunction granted by the lower court, reaffirming the notion that negative covenants in employment contracts can be enforced, especially when the services are considered “special.” Curro’s role as a television presenter was considered a special service, akin to the performer in Lumley v Wagner, justifying the enforcement of the exclusivity clause.

The exclusivity clause was a negative stipulation, and implementing it did not bind Curro to work for Beyond Productions, but rather prevented her from working elsewhere for competitors, which is permissible under equitable principles.

Further, the court determined that damages would be insufficient to compensate Beyond Productions for the violation because the loss of a unique presenter could not be quantified or repaired.

Therefore, the injunction was appropriate to prevent Curro from breaching the exclusivity clause.

Significance

This case reaffirmed several key legal principles.

Enforceability of Negative Covenants: Courts have the authority to enforce negative provisions in employment contracts, particularly those pertaining to special services.

Restraint of Trade: Such restraints are enforceable if they are reasonable and necessary to protect legitimate business interests.

Inadequate Damages: When damages are insufficient to compensate for a violation, equitable remedies in the form of an injunction are acceptable.

List of references used:

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