Court backs Victorian property manager after former agency launches legal battle

Property manager Spiro Kardamitsis worked for Nelson Alexander’s Pascoe Vale office from July 2010 to March 2023, before joining the group’s Northcote office the following month.

In January 2024, Kardamitsis commenced employment with Jellis Craig Northcote, where he has worked since.

In response to the agent switching to a rival’s office, Nelson Alexander took Kardamitsis to court, alleging that his employment with Jellis Craig breached a restraint of trade clause on his contract.

Justice Watson said Nelson Alexander was seeking a declaration that the breach had occurred, and a permanent injunction preventing Kardamitsis from continuing employment with Jellis Craig.

Justice Watson found that there had been no evidence of harm to Nelson Alexander’s business and dismissed the case.

According to Justice Watson, the restraint only applied if Kardamitsis had been operating in “restricted capacity” at Jellis Craig, which included being an equity holder in the business.

“Mr Kardamitsis is not an equity holder in Jellis Craig North and does not exercise control or management of its business or any substantial part of its business,” Justice Watson said.

“Mr Kardamitsis is not therefore engaged in a restricted capacity at Jellis Craig North.”

Justice Watson said even if the restraint was otherwise enforceable, Kardamitsis had not breached it, and argued the claims for relief should be dismissed.

While this finding alone was enough to dismiss the case, Justice Watson went on to critique the “restricted period” and “restricted area” in the restraint clause.

The contact sought to prohibit Kardamitsis from working within 15–25 km of the Pascoe Vale office for up to five years.

Justice Watson said the purpose of the temporal restraint in the restricted period was to provide the Nelson Alexander office with a timeframe in which it could ensure its customer base was not impacted by Kardamitsis’ departure.

“I accept a period of a year or perhaps two years might have been necessary for this to occur but I do not accept that three, four or five years in the context of this business and this individual were reasonable,” he said.

“He also said a 25 kilometre restraint… covered a “very significant portion of metropolitan Melbourne”.

Ultimately, the court said Nelson Alexander had suffered “no actual loss” but if Kardamitsis had been found in breach of the restraint, the agency would have received “nominal damages only”.

Because of the findings, Justice Watson questioned the decision to bring the matter to court in the first place.

“Serious questions must arise as to whether a party who has suffered no actual loss and who, as I have held, has no real need for interlocutory or declaratory relief is acting consistently with their obligations under the Civil Procedure Act 2010 in bringing such a claim,” he concluded.