| Fletcher Aluminium Ltd v O'Sullivan | |
| Court: | Court of Appeal of New Zealand |
| Date Decided: | 15 February 2001 |
| Full Name: | Fletcher Aluminium Ltd v Sean Francis O'Sullivan |
| Citations: | [2001] 2 NZLR 731 |
| Judges: | Gault J, Keith J, Tipping J |
| Transcripts: | Court of Appeal judgment |
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]
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.
The court granted the restraint of trade injunction.