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Hokitika Guardian, 18 August 1926, Page 2

BREACH OF CONTRACT. AN INJUNCTION GRANTED. AUCKLAND, August 16. In an interesting, judgement this morning by Mr J list ice Stringer, an order was made that Herbert S. Toll be restrained during the remainder of the currency of his agreement with Flax Lands Development, Ltd., from interesting himself directly, or indirectly, in the sale of any flax or afforesttation bonds, shares, or debentures, other than those of the company. The facts were that Joll and one Murch were appointed sole agents for the sale of flax 1 Kinds within a specified area for the period of six months. One of the terms was that the agents should not interest themselves during the currency of the agreement in the sale of any other securities.

11l the action brought by the company it was not disputed that defendant, contrary to the stipulation mentioned had accepted employment by an afforestation company and was engaged in the sale of bonds of such other concern.

The defences raised were that the agreement was not binding because Joll was drunk when he signed it. that the Court should leave plaintiff company to its common law remedy, and that the restriction as to the sale of bonds other than those of plaintiffs, was void as being an unreasonable restraint of trade.

His Honour said he would have refused the injunction hut for the fact that it would he extremely difficult to ascertain what damages had actually followed from defendant’s breach of contract. "While he could not compel Joll to do what lie ousfTl in the performance of the contract with plaintiffs, it was just and proper that he should restrain him from doing what he had expressly agreed not to do.