Former Ezeatm chief executive Todd Zani has been ordered to stop working with a company established five months ago that operates in the same business as his old employer.
Former Ezeatm chief executive Todd Zani has been ordered to stop working with a company established five months ago that operates in the same business as his old employer.
Star Payment Systems was registered in September last year and competes against Ezeatm in the business of deploying automated telling machines in shops and other commercial premises.
In a Supreme Court judgement handed down on Friday, Justice Rene Le Miere agreed to grant an injunction against Mr Zani.
Ezeatm argued successfully that Mr Zani’s involvement with Star Payment was in breach of earlier restraint agreements.
Mr Zani acknowledged that his company, Ezetax, provided accounting services to Star Payment, and leased premises in Malaga to the new business.
He was also a beneficiary of a discretionary trust associated with Star Payment.
However the court was told the relationship between Mr Zani and Star Payment was much more extensive.
The starkest evidence was an automated email sent to Ezeatm managing director Doug Rose with the sign-off: “Regards, Todd Zani and the team at Star Payment Systems”.
In his judgement, Justice Le Miere accepted the evidence put by the plaintiff, Ezeatm.
“Star Payment Systems has entered into the same market in which the plaintiff operates, it has retained the services of some of the plaintiff’s former staff, is utilising the services of the same accountants (and therefore the defendant) and is distributing the same brand of ATMs as the plaintiff in the same market, using the same pitch on its website, from the business premises formerly occupied by the plaintiff,” he said.
Justice Le Miere also accepted that Mr Zani, as a former executive director of Ezeatm with intimate knowledge of the business, “is able to provide Star Payment Systems significant assistance which is likely to be detrimental to the plaintiff”.
He ordered that Mr Zani stop providing accounting services to Star Payment through Ezetax, remove himself as a beneficiary of the discretionary trust, and “should not otherwise be involved in any capacity in the business of Star Payment Systems”.
Mr Zani can continue to lease premises to Star Payment.
The judgement handed down last week relates to one of several legal disputes between Ezeatm and Mr Zani, after the ASX-listed company terminated his employment in June last year.
Ezeatm is also seeking damages and compensation from Mr Zani based on claims he breached his fiduciary and Corporations Act duties.
Mr Zani had started action to be reinstated as a director, but that was discontinued last year, with Mr Zani agreeing to pay costs.
He also sought a judgement for the alleged non-payment of rent to Ezetax, but that was dismissed last month.