Richard Baker Harrison Ltd v Brooks & Ors [2021] EWHC 2562 (QB) (24 September 2021)

Richard Baker Harrison Ltd v Brooks & Ors [2021] EWHC 2562 (QB) (24 September 2021)

The defendants breached their contractual and equitable obligations by taking active steps to compete with RBH while still employed, including establishing SBS, soliciting suppliers, and retaining confidential information. The restrictive covenants were reasonable and enforceable to protect RBH's legitimate business interests. Mr Brooks owed and breached a fiduciary duty in relation to key supplier relationships.

Citation
[2021] EWHC 2562 (QB)
Parties
Claimant: Richard Baker Harrison Limited; First Defendant: Mark Brooks; Second Defendant: Andrew Sambrook; Third Defendant: BS Sourcing Limited
Jurisdiction
England and Wales
Judgment Date
24 September 2021
Procedural Posture
High Court Civil Claim (queen's Bench Division) / Expedited Trial on Liability and Enforceability of Post Termination Restrictions
Outcome
Claimant succeeds on liability and enforceability of post-termination restrictions.
Legal Topics
Restrictive Covenants, Confidential Information, Fiduciary Duties, Employee Competition, Breach of Contract
Employment Law Contract Law Equity Restrictive Covenants Confidential Information Fiduciary Duties Employee Competition Breach of Contract

Case Brief

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Parties

Richard Baker Harrison Limited

Claimant

Mark Brooks

First Defendant

Andrew Sambrook

Second Defendant

BS Sourcing Limited

Third Defendant

Procedural Posture

High Court Civil Claim (queen's Bench Division) / Expedited Trial on Liability and Enforceability of Post Termination Restrictions

Legal Issues

  1. 1 Whether the defendants breached contractual and equitable obligations of confidentiality and non-competition
  2. 2 Whether the post-termination restrictive covenants are enforceable
  3. 3 Whether the defendants misused confidential information and solicited RBH's suppliers/customers

Ratio Decidendi

The defendants breached their contractual and equitable obligations by taking active steps to compete with RBH while still employed, including establishing SBS, soliciting suppliers, and retaining confidential information. The restrictive covenants were reasonable and enforceable to protect RBH's legitimate business interests. Mr Brooks owed and breached a fiduciary duty in relation to key supplier relationships.

Court Disposition

Claimant succeeds on liability and enforceability of post-termination restrictions.

Orders

  • Declaration that defendants breached contractual and equitable obligations of confidentiality and non-competition
  • Declaration that restrictive covenants are enforceable