Cheshire Estate & Legal Ltd v Blanchfield & Ors [2024] EWCA Civ 1317 (05 November 2024)

Cheshire Estate & Legal Ltd v Blanchfield & Ors [2024] EWCA Civ 1317 (05 November 2024)

The respondents' preparatory steps to establish a competing business did not cross the line into breach of fiduciary or statutory duties, as they had not formed an irrevocable intention to compete until shortly before resignation, had not solicited CEL clients, and had not misused confidential information. The restrictive covenants were not breached, and no injunctive relief or damages were justified as no loss or real risk of loss was established.

Citation
[2024] EWCA Civ 1317
Parties
Appellant/claimant: Cheshire Estate & Legal Limited; First Respondent/defendant: Thomas Oliver Blanchfield; Second Respondent/defendant: Mark Montaldo; Third Respondent/defendant: MTCC Solutions Limited
Jurisdiction
England and Wales
Judgment Date
05 November 2024
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Directors' Fiduciary Duties, Restrictive Covenants, Springboard Injunctions, Breach of Contract, Confidential Information, Conspiracy to Injure by Unlawful Means
Company Law Employment Law Directors' Fiduciary Duties Restrictive Covenants Springboard Injunctions Breach of Contract Confidential Information Conspiracy to Injure by Unlawful Means

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Cheshire Estate & Legal Limited

Appellant/claimant

Thomas Oliver Blanchfield

First Respondent/defendant

Mark Montaldo

Second Respondent/defendant

MTCC Solutions Limited

Third Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether directors breached fiduciary and statutory duties by preparatory steps to set up a competing business before resignation
  2. 2 Whether restrictive covenants in consultancy agreements were breached
  3. 3 Entitlement to injunctive relief or damages for alleged breaches

Ratio Decidendi

The respondents' preparatory steps to establish a competing business did not cross the line into breach of fiduciary or statutory duties, as they had not formed an irrevocable intention to compete until shortly before resignation, had not solicited CEL clients, and had not misused confidential information. The restrictive covenants were not breached, and no injunctive relief or damages were justified as no loss or real risk of loss was established.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • No order for injunctive relief or damages