Duarte v The Black and Decker Corporation & Anor

Duarte v The Black and Decker Corporation & Anor

The restrictive covenants in the LTIP agreement are unenforceable under both Maryland and English law as they are wider than reasonably necessary to protect the employer's legitimate interests, barring the claimant from working for approximately 500 companies worldwide regardless of sector or connection to confidential information. The covenants cannot be severed or read down to render them enforceable. The claimant did not dishonestly copy confidential information for use with a competitor.

Parties
Claimant: Alexandre Miguel Braz Duarte; First Defendant: The Black and Decker Corporation; Second Defendant: Black and Decker Europe
Jurisdiction
England and Wales
Judgment Date
23 November 2007
Procedural Posture
Civil (employment/contract) / Judgment After Trial
Outcome
Claim allowed; counterclaim dismissed
Legal Topics
Restrictive Covenants, Restraint of Trade, Conflict of Laws—rome Convention, Confidential Information, Employee Competition, Severance of Contractual Terms
Employment Law Contract Law Conflict of Laws Restrictive Covenants Restraint of Trade Conflict of Laws—rome Convention Confidential Information Employee Competition +1 more

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Parties

Alexandre Miguel Braz Duarte

Claimant

The Black and Decker Corporation

First Defendant

Black and Decker Europe

Second Defendant

Procedural Posture

Civil (employment/contract) / Judgment After Trial

Legal Issues

  1. 1 Are the post-termination restrictive covenants in the LTIP agreement enforceable under Maryland law and/or English law?
  2. 2 Does the Rome Convention (Articles 6 and 16) require application of English law or Maryland law to the covenants?
  3. 3 Can the restrictive covenants be severed or read down to be enforceable?

Ratio Decidendi

The restrictive covenants in the LTIP agreement are unenforceable under both Maryland and English law as they are wider than reasonably necessary to protect the employer's legitimate interests, barring the claimant from working for approximately 500 companies worldwide regardless of sector or connection to confidential information. The covenants cannot be severed or read down to render them enforceable. The claimant did not dishonestly copy confidential information for use with a competitor.

Court Disposition

Claim allowed; counterclaim dismissed

Orders

  • Declaration that the restrictive covenants in the LTIP agreement are unenforceable against the claimant.
  • Defendants' claim for an injunction enforcing the restrictive covenants is dismissed.