Brake Brothers Ltd v Ungless & Anor [2004] EWHC 2799 (QB) (30 July 2004)

Brake Brothers Ltd v Ungless & Anor [2004] EWHC 2799 (QB) (30 July 2004)

The restrictive covenants, properly construed, are limited to preventing the defendants from engaging in business activities as buyers for direct competitors in relation to products and suppliers with which they were materially involved. Brakes has legitimate interests in protecting confidential information, supplier connection, and staff stability. The information to which the defendants were privy is confidential and akin to trade secrets, and is sufficiently memorable and particularised. The non-competition clause is reasonable in scope and duration and not wider than necessary. The covenants are enforceable.

Citation
[2004] EWHC 2799 (QB)
Parties
Claimant: Brake Brothers Limited; Defendant: Darren Ungless; Defendant: Timothy Adams
Jurisdiction
England and Wales
Judgment Date
30 July 2004
Procedural Posture
High Court Civil Action / Judgment After Speedy Trial
Outcome
Restrictive covenants enforced; injunctions granted.
Legal Topics
Enforceability of Post Termination Restraints, Confidential Information, Non Competition Clauses, Non Solicitation Clauses, Garden Leave, Legitimate Business Interests
Employment Law Contract Law Restrictive Covenants Enforceability of Post Termination Restraints Confidential Information Non Competition Clauses Non Solicitation Clauses Garden Leave +1 more

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Parties

Brake Brothers Limited

Claimant

Darren Ungless

Defendant

Timothy Adams

Defendant

Procedural Posture

High Court Civil Action / Judgment After Speedy Trial

Legal Issues

  1. 1 Whether the restrictive covenants in the defendants' contracts are enforceable
  2. 2 Whether Brakes has legitimate business interests justifying the restraints
  3. 3 Whether the covenants are reasonable in scope and duration

Ratio Decidendi

The restrictive covenants, properly construed, are limited to preventing the defendants from engaging in business activities as buyers for direct competitors in relation to products and suppliers with which they were materially involved. Brakes has legitimate interests in protecting confidential information, supplier connection, and staff stability. The information to which the defendants were privy is confidential and akin to trade secrets, and is sufficiently memorable and particularised. The non-competition clause is reasonable in scope and duration and not wider than necessary. The covenants are enforceable.

Court Disposition

Restrictive covenants enforced; injunctions granted.

Orders

  • Permanent injunction restraining defendants from working for competitors as buyers for six months post-termination in relation to relevant products and suppliers.
  • Defendants to give undertakings not to deal with specified products for the restraint period.