Greer v Sketchley Ltd [1978] EWCA Civ 8 (22 February 1978)

Greer v Sketchley Ltd [1978] EWCA Civ 8 (22 February 1978)

The restrictive covenant was invalid because its geographical scope (the whole of the United Kingdom) was unreasonably wide and not limited to the areas where the employer operated. The clause was not necessary to protect legitimate business interests and could not be saved by judicially reading in limiting words.

Citation
[1978] EWCA Civ 8
Parties
Plaintiff (respondent): Terence Michael Greer; Defendants (appellants): Sketchley Limited
Jurisdiction
England and Wales
Judgment Date
22 February 1978
Procedural Posture
Appeal From High Court (chancery Division) / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Restraint of Trade, Restrictive Covenants, Employment Contracts, Geographical Scope of Covenants
Employment Law Contract Law Restraint of Trade Restrictive Covenants Employment Contracts Geographical Scope of Covenants

Case Brief

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Parties

Terence Michael Greer

Plaintiff (respondent)

Sketchley Limited

Defendants (appellants)

Procedural Posture

Appeal From High Court (chancery Division) / Judgment on Appeal

Legal Issues

  1. 1 Whether the restrictive covenant in the employment contract is valid and enforceable
  2. 2 Whether the geographical scope of the covenant is reasonable
  3. 3 Whether the covenant is necessary to protect legitimate business interests

Ratio Decidendi

The restrictive covenant was invalid because its geographical scope (the whole of the United Kingdom) was unreasonably wide and not limited to the areas where the employer operated. The clause was not necessary to protect legitimate business interests and could not be saved by judicially reading in limiting words.

Court Disposition

Appeal dismissed

Orders

  • Declaration that the restrictive covenant is invalid
  • No injunction granted against Mr. Greer