Credico Marketing Ltd & Anor v Lambert & Ors [2021] EWHC 1504 (QB) (04 June 2021)

Credico Marketing Ltd & Anor v Lambert & Ors [2021] EWHC 1504 (QB) (04 June 2021)

The restrictive covenants in the Trading Agreement and Guarantee are enforceable as they are no wider than reasonably necessary to protect the Claimants' legitimate business interests. Credico is entitled to enforce the Trading Agreement due to novation and/or estoppel by convention. Mr Lambert and S5 breached the covenants by engaging in competing business within the restricted period and area. The undertakings given by Mr Lambert constituted a binding contract. Injunctive relief is appropriate until expiry of the post-termination restriction.

Citation
[2021] EWHC 1504 (QB)
Parties
Claimant: Credico Marketing Limited; Claimant: PerDM Trading Limited; Defendant: Benjamin Gregory Lambert; Defendant: S5 Marketing Limited; Defendant: Gilles Jean Baudet; Defendant: Power 21 Limited; Defendant: Interactive Limited
Jurisdiction
England and Wales
Judgment Date
04 June 2021
Procedural Posture
Commercial Contract Dispute / Speedy Trial (liability and Injunctive Relief)
Outcome
Claim for injunctive relief granted; declarations as to enforceability of restrictive covenants granted; issues of damages reserved.
Legal Topics
Enforceability of Restrictive Covenants, Novation, Estoppel by Convention, Misuse of Confidential Information, Delivery Up of Documents, Declaratory and Injunctive Relief
Contract Law Restrictive Covenants Employment Law Enforceability of Restrictive Covenants Novation Estoppel by Convention Misuse of Confidential Information Delivery Up of Documents +1 more

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Parties

Credico Marketing Limited

Claimant

PerDM Trading Limited

Claimant

Benjamin Gregory Lambert

Defendant

S5 Marketing Limited

Defendant

Gilles Jean Baudet

Defendant

Power 21 Limited

Defendant

Interactive Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Speedy Trial (liability and Injunctive Relief)

Legal Issues

  1. 1 Whether restrictive covenants in Trading Agreement and Guarantee are enforceable
  2. 2 Whether Credico is entitled to enforce the Trading Agreement via novation or estoppel
  3. 3 Whether Mr Lambert and S5 breached restrictive covenants

Ratio Decidendi

The restrictive covenants in the Trading Agreement and Guarantee are enforceable as they are no wider than reasonably necessary to protect the Claimants' legitimate business interests. Credico is entitled to enforce the Trading Agreement due to novation and/or estoppel by convention. Mr Lambert and S5 breached the covenants by engaging in competing business within the restricted period and area. The undertakings given by Mr Lambert constituted a binding contract. Injunctive relief is appropriate until expiry of the post-termination restriction.

Court Disposition

Claim for injunctive relief granted; declarations as to enforceability of restrictive covenants granted; issues of damages reserved.

Orders

  • Injunction granted restraining Mr Lambert and S5 from engaging in competing business until 25 June 2021
  • Injunction granted restraining misuse/disclosure of confidential information