East England Schools CIC (t/a 4MYSCHOOLS) v Palmer & Anor [2013] EWHC 4138 (QB) (20 December 2013)

East England Schools CIC (t/a 4MYSCHOOLS) v Palmer & Anor [2013] EWHC 4138 (QB) (20 December 2013)

The restrictive covenants in clause 15.2.2, 15.2.3, 15.2.6, and 15.2.7 of the 4myschools Contract were enforceable to the extent they protected legitimate proprietary interests in client and candidate relationships. However, the inclusion of restrictions on actions as a shareholder rendered the covenants unreasonably wide and unenforceable in their entirety. The undertakings given by Ms Palmer were not enforceable as a separate contract. Injunctive relief would not have been granted, and damages are not recoverable beyond nominal amounts.

Citation
[2013] EWHC 4138 (QB)
Parties
Claimant: East England Schools CIC (trading as 4myschools); First Defendant: Luci Palmer; Second Defendant: Sugarman Group Limited
Jurisdiction
England and Wales
Judgment Date
20 December 2013
Procedural Posture
High Court Civil Action / Post Trial Judgment
Outcome
Claim dismissed
Legal Topics
Restraint of Trade, Enforceability of Restrictive Covenants, Non Solicitation, Non Dealing, Inducement of Breach, Damages, Injunctions
Employment Law Contract Law Restrictive Covenants Restraint of Trade Enforceability of Restrictive Covenants Non Solicitation Non Dealing Inducement of Breach +2 more

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Parties

East England Schools CIC (trading as 4myschools)

Claimant

Luci Palmer

First Defendant

Sugarman Group Limited

Second Defendant

Procedural Posture

High Court Civil Action / Post Trial Judgment

Legal Issues

  1. 1 Legal effect of undertakings given by Ms Palmer
  2. 2 Enforceability of restrictive covenants in employment contract
  3. 3 Existence of legitimate proprietary interest

Ratio Decidendi

The restrictive covenants in clause 15.2.2, 15.2.3, 15.2.6, and 15.2.7 of the 4myschools Contract were enforceable to the extent they protected legitimate proprietary interests in client and candidate relationships. However, the inclusion of restrictions on actions as a shareholder rendered the covenants unreasonably wide and unenforceable in their entirety. The undertakings given by Ms Palmer were not enforceable as a separate contract. Injunctive relief would not have been granted, and damages are not recoverable beyond nominal amounts.

Court Disposition

Claim dismissed

Orders

  • No injunction granted
  • No substantive damages awarded