Wenyan Kuang has been ordered to stop running his own real estate photography business in South Auckland, in breach of his agreement with franchise Open2view.
In 2018, Mr Kuang signed up with Open2view as a photographer franchisee. He previously worked as a wedding photographer. Under the franchise agreement, Open2view provided training in real estate photography and contacts with South Auckland real estate agents. He agreed to a restraint of trade; he was not to run a competing business within two years of finishing with Open2view.
The High Court was told Mr Kuang emailed Open2view in March 2020, announcing he was quitting and that he would work by himself directly with local real estate agents. Open2view sued.
Justice Campbell issued an interim injunction blocking Mr Kuang from carrying on real estate photography work within fifty kilometres of South Auckland for the next twelve months. Mr Kuang did not appear in court. Open2view has an arguable case for an interim injunction to protect goodwill attaching to its customer base, Justice Campbell ruled.
To enforce the agreed two year ban, Open2view has to go back to court providing detailed evidence that a ban extending beyond twelve months is needed to protect the value of its South Auckland customer base.
M and L Holdings (2012) Ltd v. Whenua Productions Ltd & Kuang – High Court (28.09.20)
20.159