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Paul McGrath represented the respondents in an action brought by a former employer / competitor business for restraint of trade and delivery up (instructed by Vienna Kang Advocates). The respondents denied liability but agreed undertakings to avoid further litigation. The parties disagreed about costs. The High Court accepted the respondents’ submission that the approach of the former employer was ‘on the over-heavy side’ and accepted that there was an important public policy to encourage settlement:
‘It is in the interests of all concerned that defendants should not be dissuaded from reaching sensible compromises of interim applications, particularly where, as here, the compromise is capable of disposing of the whole action, by a fear that concessions will be taken to be acknowledgments of wrongful behaviour and of the fact that the claimant was right in its claim (or application).’View External Link