Excelerate Technology Ltd v Cumberbatch & Anor [2015] EWHC B1 (Mercantile) (16 January 2015)

Excelerate Technology Ltd v Cumberbatch & Anor [2015] EWHC B1 (Mercantile) (16 January 2015)

The court found that Lindsay Cumberbatch breached his contractual and fiduciary duties by covertly setting up and operating Red Foot Technologies Limited in direct competition with the Claimant during the restricted period, using confidential information and business opportunities belonging to the Claimant. Red Foot and David Osmond induced and participated in these breaches. The restraint of trade covenants were reasonable and enforceable. The Defendants were jointly and severally liable for repayment of the settlement sum and damages for lost profits.

Citation
[2015] EWHC B1 (Mercantile)
Parties
Claimant: Excelerate Technology Limited; First Defendant: Lindsay Cumberbatch; Second Defendant: Red Foot Technologies Limited; Third Defendant: David Osmond
Jurisdiction
England and Wales
Judgment Date
16 January 2015
Procedural Posture
Civil Breach of Contract, Fiduciary Duty, and Confidential Information / Final Judgment After Trial
Outcome
Judgment for the Claimant against the First and Second Defendants; Third Defendant joined for costs only.
Legal Topics
Restrictive Covenants, Breach of Fiduciary Duty, Breach of Confidence, Inducement of Breach of Contract, Damages, Settlement Agreements, Confidential Information, Conspiracy
Employment Law Contract Law Equity and Trusts Commercial Law Restrictive Covenants Breach of Fiduciary Duty Breach of Confidence Inducement of Breach of Contract +4 more

Case Brief

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Parties

Excelerate Technology Limited

Claimant

Lindsay Cumberbatch

First Defendant

Red Foot Technologies Limited

Second Defendant

David Osmond

Third Defendant

Procedural Posture

Civil Breach of Contract, Fiduciary Duty, and Confidential Information / Final Judgment After Trial

Legal Issues

  1. 1 Whether the First Defendant breached post-termination restrictive covenants and fiduciary duties to the Claimant
  2. 2 Whether the Second Defendant induced breaches of contract and confidence
  3. 3 Whether confidential information was misused

Ratio Decidendi

The court found that Lindsay Cumberbatch breached his contractual and fiduciary duties by covertly setting up and operating Red Foot Technologies Limited in direct competition with the Claimant during the restricted period, using confidential information and business opportunities belonging to the Claimant. Red Foot and David Osmond induced and participated in these breaches. The restraint of trade covenants were reasonable and enforceable. The Defendants were jointly and severally liable for repayment of the settlement sum and damages for lost profits.

Court Disposition

Judgment for the Claimant against the First and Second Defendants; Third Defendant joined for costs only.

Orders

  • Judgment for the Claimant in the sum of £158,343 against the First and Second Defendants, with interest of £7,248.
  • The £62,500 paid into court plus interest (£223.45) to be paid to the Claimant's solicitors forthwith.