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Dylan Welsh was the managing director of Malt Brewery Pty Ltd for the last 10 years. In his years as the managing director, Dylan Welsh

Dylan Welsh was the managing director of Malt Brewery Pty Ltd for the last 10 years. In his years as the managing director, Dylan Welsh had access to the company's secret recipe for their No 1 best seller "Jima Malt Beer". He also had access to the client list and other confidential information of Malt Brewery Pty Ltd. Prior to being appointed as a managing director of the company, Dylan Welsh had executed a noncompete agreement with Malt Brewery Pty Ltd.

Clause 1.1 of the agreement reads as follows:

"That the appointee will not upon termination of his employment with Malt Brewery Pty Ltd, for a

period of 12 months approach any of Malt Brewery Pty Ltd's clients."

Dylan has since left Malt Brewery Pty Ltd. He started a brewery business under the name of JJ Brewery Pty Ltd. His wife Penny Welsh and his close friend Jake Pound were the directors and shareholders of the company. Dylan, however, has been managing the company, though he officially does not appear in any of the company documents. In the months following the registration of the company, he had approached all of Malt Brewery Pty Ltd clients and managed to secure their business which caused Malt Brewery Pty Ltd a huge loss. Malt Brewery Pty Ltd, has since found out that Penny Welsh is the spouse of Dylan Welsh and that he is competing with Malt Brewery Pty Ltd through JJ Brewery Pty Ltd in contravention to Clause 1.1 of the noncompete agreement. They had through their solicitor have asked Dylan Welsh to stop approaching the clients of Malt Brewery Pty Ltd. Dylan Welsh has since told Malt Brewery Pty Ltd that it was not him who was approaching their clients but rather it was JJ Brewery Pty Ltd.

Advise Malt Brewery Pty Ltd whether they will be able to succeed in enforcing the noncompete agreement against Dylan Welsh and JJ Brewery Pty Ltd? Follow to IRAC style

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