Caretower Ltd v Posner

Caretower Ltd v Posner

Caretower demonstrated a high degree of assurance that client details and IT needs are confidential information protected by express contractual terms, and that Mr Posner breached those terms by contacting former clients. Damages are inadequate due to the nature of Caretower's business. The balance of convenience favours granting an interim injunction requiring Mr Posner to comply with contractual confidentiality and restrictive covenants, deliver up confidential information, and certify compliance.

Parties
Claimant: Caretower Limited; First Defendant: Jonathan Posner; Second Defendant: Epaton Limited; Third Defendant: NG Security (UK) Limited
Jurisdiction
England and Wales
Judgment Date
31 August 2018
Procedural Posture
Civil / Interim Injunction Application
Outcome
Interim injunction granted against Mr Posner; application against Epaton and NG not ruled upon.
Legal Topics
Interim Injunctions, Confidential Information, Restraint of Trade, Mandatory Injunctions, Employment Contract Terms
Employment Law Contract Law Confidentiality Restrictive Covenants Interim Injunctions Confidential Information Restraint of Trade Mandatory Injunctions +1 more

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Parties

Caretower Limited

Claimant

Jonathan Posner

First Defendant

Epaton Limited

Second Defendant

NG Security (UK) Limited

Third Defendant

Procedural Posture

Civil / Interim Injunction Application

Legal Issues

  1. 1 Whether the claimant is entitled to an interim injunction restraining the defendant from breaching contractual confidentiality provisions
  2. 2 Whether the contractual restrictive covenants are enforceable or constitute an unjustified restraint of trade
  3. 3 Whether damages would be an adequate remedy for breach of confidentiality

Ratio Decidendi

Caretower demonstrated a high degree of assurance that client details and IT needs are confidential information protected by express contractual terms, and that Mr Posner breached those terms by contacting former clients. Damages are inadequate due to the nature of Caretower's business. The balance of convenience favours granting an interim injunction requiring Mr Posner to comply with contractual confidentiality and restrictive covenants, deliver up confidential information, and certify compliance.

Court Disposition

Interim injunction granted against Mr Posner; application against Epaton and NG not ruled upon.

Orders

  • Mr Posner required to comply with contractual confidentiality and restrictive covenants (clauses 12 and 18.2.1-18.2.6)
  • Mr Posner required to deliver up Caretower's confidential information