Personnel Hygiene Services Ltd & Ors v Rentokil Initial UK Ltd (t/a Initial Medical Services) & Ors

Personnel Hygiene Services Ltd & Ors v Rentokil Initial UK Ltd (t/a Initial Medical Services) & Ors

The Court held that the confidential information provided by UKH to Initial remained protected under the confidentiality agreement and by implication under the sub-contract. The absence of an express restrictive covenant did not preclude injunctive relief. The judge was entitled to grant a limited non-user injunction and a springboard injunction to prevent Initial from taking unfair advantage of its misuse of confidential information. The duration of the injunctions was reasonable and proportionate. Damages would not have been an adequate remedy due to evidential difficulties and the risk of loss of goodwill.

Parties
Claimant/respondent: Personnel Hygiene Services Limited; Claimant/respondent: Michael Christopher Prendergast; Claimant/respondent: Andrew John Peake; Defendant/appellant: Rentokil Initial UK Limited (t/a Initial Medical Services); Defendant/appellant: Initial Medical Services Limited
Jurisdiction
England and Wales
Judgment Date
29 January 2014
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Orders
Outcome
Appeal dismissed
Legal Topics
Breach of Confidence, Injunctions, Confidential Information, Springboard Relief, Restrictive Covenants
Commercial Law Contract Law Equity Breach of Confidence Injunctions Confidential Information Springboard Relief Restrictive Covenants

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Parties

Personnel Hygiene Services Limited

Claimant/respondent

Michael Christopher Prendergast

Claimant/respondent

Andrew John Peake

Claimant/respondent

Rentokil Initial UK Limited (t/a Initial Medical Services)

Defendant/appellant

Initial Medical Services Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Orders

Legal Issues

  1. 1 Whether confidential information provided under a confidentiality agreement retained its status after entry into a sub-contract
  2. 2 Whether an injunction restraining use of confidential information post-contract was justified
  3. 3 Whether a springboard injunction was appropriate and for what duration

Ratio Decidendi

The Court held that the confidential information provided by UKH to Initial remained protected under the confidentiality agreement and by implication under the sub-contract. The absence of an express restrictive covenant did not preclude injunctive relief. The judge was entitled to grant a limited non-user injunction and a springboard injunction to prevent Initial from taking unfair advantage of its misuse of confidential information. The duration of the injunctions was reasonable and proportionate. Damages would not have been an adequate remedy due to evidential difficulties and the risk of loss of goodwill.

Court Disposition

Appeal dismissed

Orders

  • Non-user injunction against Initial until 15 January 2013 restraining use of confidential information to obtain orders from claimants' customers
  • Springboard injunction against Initial until 15 July 2012 restraining contact with customers previously approached