Abstract:
Earlier this year Allan J in the High Court examined the scope for the availability of “restitutionary damages”for breach of contract in New Zealand in Denaro Ltd v Onyx Bar and Café (Cambridge) Ltd HC Hamilton CIV 2010-419-777, 7 February 2011 (BC201160199). In 2007, Denaro and its director, Mr Wilson, agreed to sell the Onyx Bar & Café in Cambridge to Kingston Investments Ltd, including tangible and intangible assets. Denaro warranted the annual turnover of the business was not less than $1,371,270. The intangible assets included the goodwill. The agreement also contained a restraint of trade clause, whereby Denaro and Mr Wilson covenanted not to carry out a similar business directly or within a 10 km radius of Cambridge CBD.