Bulldogs rugby league club Vs Sonny Bill Williams
The high-profile defection of Bulldogs rugby league player Sonny Bill Williams to a French rugby union team has some important lessons for employers.
Sonny Bill Williams started playing with the Bulldogs in about 2002. He was recruited as a 16 year old and given guidance by a number of coaches and senior officials of the club.
In late 2006/early 2007 Williams and the Bulldogs commenced negotiations about a new contract and a new five-year contract commenced on 1 November 2007. Williams was paid an annual salary of $400,000 per season. The contract had a number of relevant clauses, including:
3.1 General Obligation - the player agrees to:
s. not to play the game with any person, team or organisation save for the Club or in a representative match or matches in the related competitions except with the prior written consent of the Club;
t. not, without the prior written consent of the Club, which the player acknowledges will only be given with the consent of the NRL, participate in any football match of any code other than matches referred to in subclause 3.1(s)
u. without limiting subclauses 3.1(s) or 3.1(t) not participate in any sporting or leisure activities other than matches approved by the Club and the NRL pursuant to the subclause 3.1(t) except where:
i. the chances of injury are unlikely;
ii. such will not otherwise limit his ability to perform his obligations under this agreement;
iii. there is no prearranged media coverage; and
iv. the player is not (directly or indirectly) paid except with the prior written consent of the Club.
Williams reportedly signed a contract with Toulon rugby union club to play in the French “Top 14” competition in the 2008/2009 season. That competition is played from August 2008 and is due to conclude in the May 2009.
The court case
The Bulldogs Rugby League Club Limited commenced proceedings against Sonny Bill Williams, the Toulon Rugby Club and a Mr Nasser (William’s agent) seeking an injunction to stop him playing for Toulon.
The court restrained Williams from playing for Toulon in the “Top 14” competition. A number of issues arose in the case. Some of the issues concern whether the court documents had been properly served. The court heard evidence that:
The process server went onto the training pitch and called out to the first defendant that he had documents for him. He threw the documents in the direction of the first defendant (Williams). The documents were picked up by a trainer of the Toulon Rugby Club who handed them to the first defendant and in doing so said “Williams c’est pour toi” (Williams, it’s for you).
The court held that this constituted personal service and that the other steps required to affect service had been carried out.
An issue arose as to the jurisdiction of the Supreme Court of NSW to make orders concerning a person who was now a resident in France. The court held that it did have the jurisdiction to grant those orders. The court noted that Williams was the registered proprietor of land and property in Sydney and that the granting of an injunction in those circumstances would not be futile.
Much of the judgement concerned whether or not the court should grant the injunction. Williams had entered into a contract which contained the provisions set out above. The court held that there were serious questions to be tried and that damages may not be adequate compensation for the Bulldogs - the only way justice could be served was to stop Williams playing for Toulon.
The Supreme Court granted the injunction. Media reports suggest that this was a key factor to achieving a negotiated settlement, and that Williams and the Bulldogs have subsequently settled their differences.
Lessons
There are a number of lessons employers can learn from this case including
1. it is very important with key personnel to enter into a written contract
2. the written contract should prevent them from working for a competitor (at least during the term of the contract)
3. if that provision is reasonable the court will restrain a breach of it; and
4. if this happens employers need to act quickly
5. action can be taken against former staff even if they have moved.
Postscript
Sadly, Sonny Bill Williams was injured and missed a number of Toulon’s regular season matches. At the time of publication, Toulon was running fourth last in the competition.
If you would like more information or help with your workplace, please contact Kells partner and employment law expert David Potts.
David is hosting a complimentary seminar with essential information for your business on the new IR laws that start on 1 July. Click here for more information.
