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 are enforceable to the extent that they protect Brakes' legitimate interests in confidential information, supplier connection, and staff stability. The non-competition clause is construed as limited to preventing the defendants from working as buyers for direct competitors in relation to products they dealt with at Brakes, not as a blanket prohibition on all employment with competitors. The information identified is sufficiently particularised and confidential, and the duration and scope of the covenants are reasonable in the circumstances.

Citation
[2004] EWHC 2799
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
Injunction granted in modified terms
Legal Topics
Restrictive Covenants, Restraint of Trade, Confidential Information, Non Competition Clauses, Employment Contracts
Employment Law Contract Law Restrictive Covenants Restraint of Trade Confidential Information Non Competition Clauses Employment Contracts

Case Brief

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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 Are the restrictive covenants in the defendants' employment contracts enforceable?
  2. 2 Do the covenants go further than reasonably necessary to protect the claimant's legitimate business interests?
  3. 3 Is the confidential information identified by the claimant sufficiently particularised and protectable?

Ratio Decidendi

The restrictive covenants are enforceable to the extent that they protect Brakes' legitimate interests in confidential information, supplier connection, and staff stability. The non-competition clause is construed as limited to preventing the defendants from working as buyers for direct competitors in relation to products they dealt with at Brakes, not as a blanket prohibition on all employment with competitors. The information identified is sufficiently particularised and confidential, and the duration and scope of the covenants are reasonable in the circumstances.

Court Disposition

Injunction granted in modified terms

Orders

  • Defendants restrained for six months from working as buyers for direct competitors in relation to products they dealt with at Brakes.
  • Defendants to give undertakings not to use or disclose confidential information as specified.