Are you protecting your client business?

The recent Supreme Court of New South Wales decision of Andrews Advertising Pty Limited v David Andrews highlights the importance of having procedures in place to protect client revenue, including in respect of businesses that have been recently acquired.

In the Andrews Advertising case, Mr Andrews held very close and longstanding relationships with the two key clients of the business. The Andrews Advertising business was purchased by Adcorp Australia Pty Limited and, relevantly, the Court found that:

1. whilst he was still employed by Andrews Advertising, Mr Andrews diverted client work to a company operated by his wife and also performed work for this same company; and
2. immediately following the cessation of Mr Andrews' employment with Andrews Advertising, he undertook work for one client in breach of his post employment restraints.