CEF Holdings Ltd & Anor v City Electrical Factors Ltd & Ors [2012] EWHC 1524 (QB) (01 June 2012)

CEF Holdings Ltd & Anor v City Electrical Factors Ltd & Ors [2012] EWHC 1524 (QB) (01 June 2012)

The employee recruitment and non-competition covenants were unenforceable as drafted because they were too wide, uncertain, and went beyond what was reasonably necessary to protect CEF's legitimate interests. The injunctions sought could not be granted as the covenants failed the reasonableness test and were not sufficiently precise. The absence of similar restrictions for more senior employees further undermined the employer's case. The court declined to grant interim relief on these grounds.

Citation
[2012] EWHC 1524
Parties
Claimant: CEF Holdings Limited; Claimant: City Electrical Factors Limited; Defendant: Brian Mundey; Defendant: Richard Kay; Defendant: Neil Davison; Defendant: Robert Shaw; Defendant: Steven Whitely; Defendant: Mark Abbey; Defendant: Richard Butterfield; Defendant: Mark Nolan; Defendant: Kevin Mallinson; Defendant: Robin Moorey; Defendant: Colin Stirrat; Defendant: Steven Kay; Defendant: Anthony Pidcock; Defendant: Chris Pidcock; Defendant: Gerry Brown; Defendant: Colin Middleton; Defendant: Dave Evans; Defendant: Adrian O'Donohue; Defendant: Craig Copland; Defendant: Complete Electric Solutions Ltd; Defendant: All Electric Solutions Limited; Defendant: Ashley Mackie; Defendant: Adam Mackie; Defendant: Andrew Singleton
Jurisdiction
England and Wales
Judgment Date
01 June 2012
Procedural Posture
Interim Injunction Application in Civil Proceedings / Post Interim Order, Hearing of Applications to Discharge or Continue Injunctions
Outcome
Interim injunctions refused; existing interim orders discharged.
Legal Topics
Restrictive Covenants, Restraint of Trade, Interim Injunctions, Springboard Relief, Jurisdiction, Employee Solicitation, Confidential Information
Employment Law Contract Law Civil Procedure Restrictive Covenants Restraint of Trade Interim Injunctions Springboard Relief Jurisdiction +2 more

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Parties

CEF Holdings Limited

Claimant

City Electrical Factors Limited

Claimant

Brian Mundey

Defendant

Richard Kay

Defendant

Neil Davison

Defendant

Robert Shaw

Defendant

Steven Whitely

Defendant

Mark Abbey

Defendant

Richard Butterfield

Defendant

Mark Nolan

Defendant

Kevin Mallinson

Defendant

Robin Moorey

Defendant

Colin Stirrat

Defendant

Steven Kay

Defendant

Anthony Pidcock

Defendant

Chris Pidcock

Defendant

Gerry Brown

Defendant

Colin Middleton

Defendant

Dave Evans

Defendant

Adrian O'Donohue

Defendant

Craig Copland

Defendant

Complete Electric Solutions Ltd

Defendant

All Electric Solutions Limited

Defendant

Ashley Mackie

Defendant

Adam Mackie

Defendant

Andrew Singleton

Defendant

Procedural Posture

Interim Injunction Application in Civil Proceedings / Post Interim Order, Hearing of Applications to Discharge or Continue Injunctions

Legal Issues

  1. 1 Whether employee recruitment and non-competition covenants are enforceable
  2. 2 Whether interim injunctions should be granted to enforce such covenants
  3. 3 Whether springboard relief is available

Ratio Decidendi

The employee recruitment and non-competition covenants were unenforceable as drafted because they were too wide, uncertain, and went beyond what was reasonably necessary to protect CEF's legitimate interests. The injunctions sought could not be granted as the covenants failed the reasonableness test and were not sufficiently precise. The absence of similar restrictions for more senior employees further undermined the employer's case. The court declined to grant interim relief on these grounds.

Court Disposition

Interim injunctions refused; existing interim orders discharged.

Orders

  • Refusal to grant interim injunctions enforcing employee recruitment and non-competition covenants against the Third to Nineteenth Defendants.
  • Discharge of the interim orders previously granted by Collins J.