Decorus Ltd v Penfold & Anor [2016] EWHC 1421 (QB) (20 June 2016)

Decorus Ltd v Penfold & Anor [2016] EWHC 1421 (QB) (20 June 2016)

The 2013 contract governed Mr Penfold's employment as there was valid consideration through appraisal, pay rise, and continued employment. The restrictive covenants in clause 18.2(ii) are enforceable as they protect legitimate business interests and are reasonable in scope and duration. Mr Penfold breached his duty of fidelity and confidence by misusing confidential information and soliciting customers while still employed and after leaving. The conduct of the Defendants justified damages and injunctive relief.

Citation
[2016] EWHC 1421
Parties
Claimant: Decorus Limited; First Defendant: Mr Daniel Penfold; Second Defendant: Procure Store Limited
Jurisdiction
England and Wales
Judgment Date
20 June 2016
Procedural Posture
High Court Civil Claim / Judgment After Speedy Trial
Outcome
Judgment for the Claimant
Legal Topics
Restrictive Covenants, Duty of Fidelity, Confidential Information, Breach of Contract, Restraint of Trade
Employment Law Contract Law Restrictive Covenants Duty of Fidelity Confidential Information Breach of Contract Restraint of Trade

Case Brief

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Parties

Decorus Limited

Claimant

Mr Daniel Penfold

First Defendant

Procure Store Limited

Second Defendant

Procedural Posture

High Court Civil Claim / Judgment After Speedy Trial

Legal Issues

  1. 1 Which contract governed Mr Penfold's employment?
  2. 2 Are the restrictive covenants in the 2013 contract enforceable?
  3. 3 Did Mr Penfold breach his duty of fidelity and confidence?

Ratio Decidendi

The 2013 contract governed Mr Penfold's employment as there was valid consideration through appraisal, pay rise, and continued employment. The restrictive covenants in clause 18.2(ii) are enforceable as they protect legitimate business interests and are reasonable in scope and duration. Mr Penfold breached his duty of fidelity and confidence by misusing confidential information and soliciting customers while still employed and after leaving. The conduct of the Defendants justified damages and injunctive relief.

Court Disposition

Judgment for the Claimant

Orders

  • Damages awarded in the sum of £29,852.17
  • Final injunctive relief in terms of paragraphs 2, 3, 6 and 7 of the order dated 16 March 2016