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 wider than reasonably necessary to protect ARFP's legitimate business interests and constituted an unenforceable restraint of trade; the notice period did not count as garden leave for the purpose of reducing the duration of post-termination restrictions.

Citation
[2013] EWHC 1185
Parties
Claimant: Ashcourt Rowan Financial Planning Ltd; Defendant: Carlton John Hall
Jurisdiction
England and Wales
Judgment Date
10 May 2013
Procedural Posture
Injunction Proceedings / Return Date Hearing Following Interim Injunction
Outcome
Non-competition covenant held unenforceable; garden leave argument rejected; further submissions invited on relief and case management.
Legal Topics
Restrictive Covenants, Restraint of Trade, Garden Leave, Post Termination Restrictions, Confidential Information
Employment Law Contract Law Restrictive Covenants Restraint of Trade Garden Leave Post Termination Restrictions Confidential Information

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Parties

Ashcourt Rowan Financial Planning Ltd

Claimant

Carlton John Hall

Defendant

Procedural Posture

Injunction Proceedings / Return Date Hearing Following Interim 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 wider than reasonably necessary to protect ARFP's legitimate business interests and constituted an unenforceable restraint of trade; the notice period did not count as garden leave for the purpose of reducing the duration of post-termination restrictions.

Court Disposition

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