Ashcourt Rowan Financial Planning Ltd v Hall [2013] EWHC 1185 (QB) (10 May 2013)

Ashcourt Rowan Financial Planning Ltd v Hall [2013] EWHC 1185 (QB) (10 May 2013)

The non-competition covenant was held to be wider than reasonably necessary to protect ARFP's legitimate business interests and thus unenforceable as a restraint of trade. The garden leave period did not apply to Mr Hall's notice period, so the restrictive covenants were not reduced by that period.

Citation
[2013] EWHC 1185 (QB)
Parties
Claimant: Ashcourt Rowan Financial Planning Ltd; Defendant: Carlton John Hall
Jurisdiction
England and Wales
Judgment Date
10 May 2013
Procedural Posture
Employment / Interim Judgment on Return Date After Without Notice Injunction
Outcome
Non-competition covenant unenforceable; garden leave argument rejected; further submissions invited on relief and case management.
Legal Topics
Restrictive Covenants, Restraint of Trade, Garden Leave, Non Competition Clauses, Confidential Information
Employment Law Contract Law Restrictive Covenants Restraint of Trade Garden Leave Non Competition Clauses Confidential Information

Case Brief

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Parties

Ashcourt Rowan Financial Planning Ltd

Claimant

Carlton John Hall

Defendant

Procedural Posture

Employment / Interim Judgment on Return Date After Without Notice Injunction

Legal Issues

  1. 1 Interpretation of garden leave clause and its effect on restrictive covenants
  2. 2 Enforceability of non-competition covenant as restraint of trade

Ratio Decidendi

The non-competition covenant was held to be wider than reasonably necessary to protect ARFP's legitimate business interests and thus unenforceable as a restraint of trade. The garden leave period did not apply to Mr Hall's notice period, so the restrictive covenants were not reduced by that period.

Court Disposition

Non-competition covenant unenforceable; garden leave argument rejected; further submissions invited on relief and case management.