Quilter Private Client Advisers Ltd v Falconer & Anor [2020] EWHC 3294 (QB) (04 December 2020)

Quilter Private Client Advisers Ltd v Falconer & Anor [2020] EWHC 3294 (QB) (04 December 2020)

The court found that the restrictive covenants in EF's contract were, in principle, enforceable as they protected legitimate business interests and were reasonable in duration and scope. EF breached her contractual and equitable duties by retaining and using confidential information and by dealing with certain clients post-termination. However, the court found insufficient evidence that Continuum induced EF's breaches or misused confidential information. The claim for constructive dismissal failed. The quantum of damages was modest and limited to proven losses.

Citation
[2020] EWHC 3294 (QB)
Parties
Claimant: Quilter Private Client Advisers Limited; First Defendant: Emma Falconer; Second Defendant: Continuum (Financial Services) LLP
Jurisdiction
England and Wales
Judgment Date
04 December 2020
Procedural Posture
High Court Civil Claim (queen's Bench Division) / Liability and Injunctive Relief Trial
Outcome
Claim allowed in part
Legal Topics
Enforceability of Restrictive Covenants, Breach of Contract, Constructive Dismissal, Inducement of Breach of Contract, Confidential Information Misuse
Employment Law Contract Law Restrictive Covenants Confidential Information Enforceability of Restrictive Covenants Breach of Contract Constructive Dismissal Inducement of Breach of Contract +1 more

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Parties

Quilter Private Client Advisers Limited

Claimant

Emma Falconer

First Defendant

Continuum (Financial Services) LLP

Second Defendant

Procedural Posture

High Court Civil Claim (queen's Bench Division) / Liability and Injunctive Relief Trial

Legal Issues

  1. 1 Whether the restrictive covenants in EF's contract with Quilter were valid and enforceable
  2. 2 Whether EF breached her contract by soliciting or dealing with clients and/or misusing confidential information
  3. 3 Whether Continuum induced EF to breach her contract or misused confidential information

Ratio Decidendi

The court found that the restrictive covenants in EF's contract were, in principle, enforceable as they protected legitimate business interests and were reasonable in duration and scope. EF breached her contractual and equitable duties by retaining and using confidential information and by dealing with certain clients post-termination. However, the court found insufficient evidence that Continuum induced EF's breaches or misused confidential information. The claim for constructive dismissal failed. The quantum of damages was modest and limited to proven losses.

Court Disposition

Claim allowed in part

Orders

  • Declaration that EF breached post-termination restrictions and confidentiality obligations
  • Damages awarded to Quilter for proven losses (quantum to be assessed, but modest)