Norbrook Laboratories (GB) Ltd v Adair & Anor [2008] EWHC 978 (QB) (06 May 2008)

Norbrook Laboratories (GB) Ltd v Adair & Anor [2008] EWHC 978 (QB) (06 May 2008)

The confidentiality agreement is enforceable and Ms Adair is restrained from using or disclosing Norbrook's confidential information. The non-competition covenant in Clause 6.1(a) is void as an unreasonable restraint of trade because it is wider than reasonably necessary, particularly in its definition of restricted business and duration. The non-solicitation/non-dealing covenant in Clause 6.1(b) is enforceable with the deletion of the phrase 'direct access to and/or' but is otherwise reasonable in scope and duration, except that it cannot extend to 'prospective customers'.

Citation
[2008] EWHC 978 (QB)
Parties
Claimant: Norbrook Laboratories (GB) Limited; First Defendant: Rebecca Adair; Second Defendant: Pfizer Limited
Jurisdiction
England and Wales
Judgment Date
06 May 2008
Procedural Posture
Employment/restrictive Covenants / Trial Judgment
Outcome
Partially allowed
Legal Topics
Restrictive Covenants, Confidential Information, Restraint of Trade, Injunctions
Employment Law Contract Law Restrictive Covenants Confidential Information Restraint of Trade Injunctions

Case Brief

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Parties

Norbrook Laboratories (GB) Limited

Claimant

Rebecca Adair

First Defendant

Pfizer Limited

Second Defendant

Procedural Posture

Employment/restrictive Covenants / Trial Judgment

Legal Issues

  1. 1 Are the post-termination restrictive covenants in Ms Adair's contract enforceable?
  2. 2 Is the confidentiality agreement enforceable?
  3. 3 Are the non-competition and non-solicitation clauses reasonable in scope, duration, and subject matter?

Ratio Decidendi

The confidentiality agreement is enforceable and Ms Adair is restrained from using or disclosing Norbrook's confidential information. The non-competition covenant in Clause 6.1(a) is void as an unreasonable restraint of trade because it is wider than reasonably necessary, particularly in its definition of restricted business and duration. The non-solicitation/non-dealing covenant in Clause 6.1(b) is enforceable with the deletion of the phrase 'direct access to and/or' but is otherwise reasonable in scope and duration, except that it cannot extend to 'prospective customers'.

Court Disposition

Partially allowed

Orders

  • Permanent injunction granted restraining Ms Adair from using or disclosing Norbrook's confidential information as defined in the Confidentiality Agreement.
  • Non-competition covenant (Clause 6.1(a)) declared void and unenforceable against Ms Adair.