Manufacturing Excellence Ltd v Hemming (t/a Hemming-Mann Ltd) & Ors

Manufacturing Excellence Ltd v Hemming (t/a Hemming-Mann Ltd) & Ors

The court found that the consultancy contracts with Mr Hill and HMIM (not Mr Hemming personally) continued after their stated expiry by conduct and implied waiver, and that the post-termination restraint clauses were enforceable but only to the extent that they restricted the provision of BIT NVQ training to relevant customers for six months post-termination. Mr Hill and Mr Birkhead breached these clauses by soliciting and performing work for the claimant's customers. The defendants, including Mr Hemming and PPL, were also liable for economic torts of unlawful means conspiracy, inducement to breach contract, and unlawful interference, as they knowingly combined to divert business from the...

Parties
Claimant: Manufacturing Excellence Limited; First Defendant: Steve Hemming trading as Hemming-Mann Limited; Second Defendant: Graham Hill trading as Graham Hill Training; Third Defendant: Alastair Birkhead; Fourth Defendant: Parallax Partners Limited
Jurisdiction
England and Wales
Judgment Date
18 September 2013
Procedural Posture
Civil (contract and Economic Torts) / Judgment After Trial
Outcome
Liability established against Mr Hill, Mr Birkhead, HMIM, Mr Hemming, and PPL for breach of contract (where applicable) and economic torts. Damages to be assessed.
Legal Topics
Restraint of Trade, Breach of Contract, Breach of Confidence, Fiduciary Duties, Economic Torts, Inducement to Breach Contract, Unlawful Means Conspiracy, Unlawful Interference

Case Brief

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Parties

Manufacturing Excellence Limited

Claimant

Steve Hemming trading as Hemming-Mann Limited

First Defendant

Graham Hill trading as Graham Hill Training

Second Defendant

Alastair Birkhead

Third Defendant

Parallax Partners Limited

Fourth Defendant

Procedural Posture

Civil (contract and Economic Torts) / Judgment After Trial

  1. 1 Whether the defendants breached post-termination restraint clauses in consultancy contracts
  2. 2 Whether the contracts continued after expiry by conduct or waiver
  3. 3 Whether the defendants breached duties of confidence and fidelity

Ratio Decidendi

The court found that the consultancy contracts with Mr Hill and HMIM (not Mr Hemming personally) continued after their stated expiry by conduct and implied waiver, and that the post-termination restraint clauses were enforceable but only to the extent that they restricted the provision of BIT NVQ training to relevant customers for six months post-termination. Mr Hill and Mr Birkhead breached these clauses by soliciting and performing work for the claimant's customers. The defendants, including Mr Hemming and PPL, were also liable for economic torts of unlawful means conspiracy, inducement to breach contract, and unlawful interference, as they knowingly combined to divert business from the...

Court Disposition

Liability established against Mr Hill, Mr Birkhead, HMIM, Mr Hemming, and PPL for breach of contract (where applicable) and economic torts. Damages to be assessed.

Orders

  • Damages to be assessed based on the principles set out in the judgment, with further submissions invited if necessary.
  • The experts are to agree quantum in light of the court's findings.