Tullett Prebon Plc & Ors v BGC Brokers LP & Ors

Tullett Prebon Plc & Ors v BGC Brokers LP & Ors

The brokers were not constructively dismissed by Tullett; BGC, Mr Lynn, and Mr Verrier conspired and induced breaches of contract by recruiting brokers using unlawful means, including use of desk heads and indemnities, and intended to have brokers leave regardless of grounds for constructive dismissal. Tullett did not induce the Tullett Three to breach BGC contracts as the contracts were repudiated by BGC's conduct. Restrictive covenants and garden leave are enforceable for periods necessary to protect Tullett's interests. Repayment clauses for bonuses and signing payments are enforceable and not penalties or restraints of trade.

Parties
Claimant: Tullett Prebon PLC; Claimant: Tullett Prebon Group Limited; Claimant: Tullett Prebon (UK) Limited; Defendant: BGC Brokers L.P.; Defendant: BGC Brokers GP Limited; Defendant: Anthony Neil Verrier; Defendant: Shaun David Carl Edgar Lynn; Defendant: James Robert Hall; Defendant: Robert Leslie Sully; Defendant: Paul James Bishop; Defendant: Steven Harry Harkins; Defendant: Mark Andrew Yexley; Defendant: James Vincent Bowditch; Defendant: Kevin Charles Maurice Cohen; Defendant: Pelham Ashley Temple; Defendant: James Terence Wilkes; Defendant: Gavin David Matthews
Jurisdiction
England and Wales
Judgment Date
18 March 2010
Procedural Posture
Civil / Final Judgment After Full Trial on Liability and Injunctive Relief
Outcome
Claims for constructive dismissal by brokers dismissed; Tullett's claims for conspiracy and inducing breach of contract against BGC, Lynn, and Verrier succeed; BGC's counterclaim against Tullett fails; injunctions granted for specified periods; repayment of bonuses and signing payments ordered.
Legal Topics
Constructive Dismissal, Conspiracy, Inducing Breach of Contract, Restrictive Covenants, Garden Leave, Confidential Information, Injunctions, Damages, Restraint of Trade, Bonuses and Retention Payments
Employment Law Commercial Law Tort Law Constructive Dismissal Conspiracy Inducing Breach of Contract Restrictive Covenants Garden Leave +5 more

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Parties

Tullett Prebon PLC

Claimant

Tullett Prebon Group Limited

Claimant

Tullett Prebon (UK) Limited

Claimant

BGC Brokers L.P.

Defendant

BGC Brokers GP Limited

Defendant

Anthony Neil Verrier

Defendant

Shaun David Carl Edgar Lynn

Defendant

James Robert Hall

Defendant

Robert Leslie Sully

Defendant

Paul James Bishop

Defendant

Steven Harry Harkins

Defendant

Mark Andrew Yexley

Defendant

James Vincent Bowditch

Defendant

Kevin Charles Maurice Cohen

Defendant

Pelham Ashley Temple

Defendant

James Terence Wilkes

Defendant

Gavin David Matthews

Defendant

Procedural Posture

Civil / Final Judgment After Full Trial on Liability and Injunctive Relief

Legal Issues

  1. 1 Whether the defendant brokers were constructively dismissed by Tullett
  2. 2 Whether BGC, Mr Lynn, and Mr Verrier conspired and induced breach of contract
  3. 3 Whether Tullett constructively dismissed the brokers

Ratio Decidendi

The brokers were not constructively dismissed by Tullett; BGC, Mr Lynn, and Mr Verrier conspired and induced breaches of contract by recruiting brokers using unlawful means, including use of desk heads and indemnities, and intended to have brokers leave regardless of grounds for constructive dismissal. Tullett did not induce the Tullett Three to breach BGC contracts as the contracts were repudiated by BGC's conduct. Restrictive covenants and garden leave are enforceable for periods necessary to protect Tullett's interests. Repayment clauses for bonuses and signing payments are enforceable and not penalties or restraints of trade.

Court Disposition

Claims for constructive dismissal by brokers dismissed; Tullett's claims for conspiracy and inducing breach of contract against BGC, Lynn, and Verrier succeed; BGC's counterclaim against Tullett fails; injunctions granted for specified periods; repayment of bonuses and signing payments ordered.

Orders

  • Injunctions restraining defendant brokers from joining BGC for 12 months (8 months for Mr Yexley) from judgment or as specified by contract terms.
  • Injunction against BGC, Lynn, and Verrier restraining recruitment from Tullett for 14 days from judgment.