East England Schools CIC (t/a 4MYSCHOOLS) v Palmer & Anor

East England Schools CIC (t/a 4MYSCHOOLS) v Palmer & Anor

The restrictive covenants in sub-clauses 15.2.2 and 15.2.6 (non-solicitation) and the 'dealing' portions of 15.2.3 and 15.2.7 were legally enforceable as reasonable and necessary to protect 4myschools' proprietary interests; the 'being concerned' portions were unreasonably wide and severed. Ms Palmer breached the enforceable covenants, and Sugarman Group induced those breaches with sufficient knowledge. Damages were awarded.

Parties
Claimant: East England Schools CIC (trading as 4myschools); First Defendant: Luci Palmer; Second Defendant: Sugarman Group Limited
Jurisdiction
England and Wales
Judgment Date
20 December 2013
Procedural Posture
Civil / Final Judgment After Speedy Trial
Outcome
Judgment for claimant
Legal Topics
Restrictive Covenants, Restraint of Trade, Inducement of Breach of Contract, Severance of Contractual Terms, Enforceability of Post Termination Restrictions
Employment Law Contract Law Tort Law Restrictive Covenants Restraint of Trade Inducement of Breach of Contract Severance of Contractual Terms Enforceability of Post Termination Restrictions

Case Brief

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Parties

East England Schools CIC (trading as 4myschools)

Claimant

Luci Palmer

First Defendant

Sugarman Group Limited

Second Defendant

Procedural Posture

Civil / Final Judgment After Speedy Trial

Legal Issues

  1. 1 Legal effect of undertakings given by Ms Palmer
  2. 2 Enforceability of restrictive covenants in employment contract
  3. 3 Whether covenants were reasonable and necessary to protect proprietary interest

Ratio Decidendi

The restrictive covenants in sub-clauses 15.2.2 and 15.2.6 (non-solicitation) and the 'dealing' portions of 15.2.3 and 15.2.7 were legally enforceable as reasonable and necessary to protect 4myschools' proprietary interests; the 'being concerned' portions were unreasonably wide and severed. Ms Palmer breached the enforceable covenants, and Sugarman Group induced those breaches with sufficient knowledge. Damages were awarded.

Court Disposition

Judgment for claimant

Orders

  • Declaration that sub-clauses 15.2.2 and 15.2.6 are enforceable against Ms Palmer
  • Declaration that 'being concerned' portions of 15.2.3 and 15.2.7 are unenforceable and severed; remainder enforceable