Prophet Plc v Huggett

Prophet Plc v Huggett

The restrictive covenant, as drafted, unambiguously referred only to products (Pr2 and Pr3) with which Mr Huggett was involved at Prophet. Since no competitor provides those products, the clause did not bar Mr Huggett from working for K3. The court cannot re-write or add words to the clause to give it commercial effect; Prophet must accept the bargain it made.

Parties
Claimant/respondent: Prophet PLC; Defendant/appellant: Christopher Huggett
Jurisdiction
England and Wales
Judgment Date
22 July 2014
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Restrictive Covenants, Interpretation of Contracts, Restraint of Trade
Employment Law Contract Law Restrictive Covenants Interpretation of Contracts Restraint of Trade

Case Brief

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Parties

Prophet PLC

Claimant/respondent

Christopher Huggett

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Proper interpretation of a restrictive covenant in an employment contract
  2. 2 Whether the restrictive covenant was enforceable or void for being in unreasonable restraint of trade
  3. 3 Whether the court can correct or re-write a restrictive covenant to give it commercial effect

Ratio Decidendi

The restrictive covenant, as drafted, unambiguously referred only to products (Pr2 and Pr3) with which Mr Huggett was involved at Prophet. Since no competitor provides those products, the clause did not bar Mr Huggett from working for K3. The court cannot re-write or add words to the clause to give it commercial effect; Prophet must accept the bargain it made.

Court Disposition

Appeal allowed

Orders

  • Paragraph 1 of the judge’s order set aside
  • Injunction against Mr Huggett discharged