H & R Block Ltd v Sanott [1976] 1 NZLR 213 is a cited case in New Zealand regarding the legality of restraint of trade clauses under the Illegal Contracts Act 1970.[1][2]
| H & R Block Ltd v Sanott | |
|---|---|
 | |
| Court | High Court of New Zealand |
| Full case name | H & R Block Ltd v Sanott |
| Decided | 13 August 1975 |
| Citation(s) | [1976] 1 NZLR 213 |
| Court membership | |
| Judge(s) sitting | Somers J |
Background edit
Sanott was employed as a manager of H & R Block's Christchurch office. After a falling out between them, Sannott resigned and set up in competition to them. H & R Block sought to enforce his restraint of trade clause excluding him for operating within 25 miles of their Christchurch office for the next 5 years.
Held edit
The court found the restraint of trade clause was unreasonable, and modified it to excluding operating within 5 miles, for 3 years. Somers J said "The provisions of s 8 were intended to overcome the annihilating effect of the common law rules about excessive restraints and to alter those rules as to severance".
See also edit
References edit
- ^ Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. pp. 377–378. ISBN 0-86472-555-8.
- ^ Walker, Campbell (2004). Butterworths Student Companion Contract (4th ed.). LexisNexis. pp. 169–170. ISBN 0-408-71770-X.