December 12, 2013

Non-solicitation covenant valid despite scope

The employee’s contract contained a restriction prohibiting solicitation of any customers of his former employer for 6 months following termination. The Mercantile Court had held that the restriction was reasonable and that the director had breached his fiduciary duties to the company, hence the award of damages. In the employee’s appeal, he argued that the restriction was unreasonable because it applied to all the customers he had dealt with during his employment. The Court of Appeal disagreed, however, holding that the restriction was reasonable, despite its breadth, because it only applied for 6 months.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.


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