P14 Medical Ltd v Mahon [2020] EWHC 1823 (QB) (09 July 2020)

P14 Medical Ltd v Mahon [2020] EWHC 1823 (QB) (09 July 2020)

The court held that the claimant is likely to succeed at trial in establishing that the defendant's contract of employment contained enforceable restrictive covenants, transferred by operation of TUPE, and that these covenants are reasonable and necessary to protect the claimant's legitimate business interests. The court further held that, given the likelihood that the period of restraint would have substantially expired before final judgment, it was appropriate to assess the likelihood of the claimant's success at trial as part of the balance of convenience. The court found that damages would not be an adequate remedy for the claimant and that the balance of convenience favoured the...

Citation
[2020] EWHC 1823 (QB)
Parties
Claimant: P14 Medical Limited; Defendant: Edward Mahon
Jurisdiction
England and Wales
Judgment Date
09 July 2020
Procedural Posture
Interim Injunction Application (employment/restrictive Covenants) / High Court, Queen's Bench Division, Interim Relief Hearing
Outcome
Interim injunction granted
Legal Topics
Restrictive Covenants, Confidential Information, TUPE Transfer, Injunctions, Restraint of Trade, Directors' Duties
Employment Law Contract Law Equity Restrictive Covenants Confidential Information TUPE Transfer Injunctions Restraint of Trade +1 more

Case Brief

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Parties

P14 Medical Limited

Claimant

Edward Mahon

Defendant

Procedural Posture

Interim Injunction Application (employment/restrictive Covenants) / High Court, Queen's Bench Division, Interim Relief Hearing

Legal Issues

  1. 1 Whether the defendant's contract of employment with the claimant contained enforceable restrictive covenants
  2. 2 Whether the restrictive covenants are void as being in restraint of trade
  3. 3 Whether the defendant is likely to breach duties of confidence or use confidential information

Ratio Decidendi

The court held that the claimant is likely to succeed at trial in establishing that the defendant's contract of employment contained enforceable restrictive covenants, transferred by operation of TUPE, and that these covenants are reasonable and necessary to protect the claimant's legitimate business interests. The court further held that, given the likelihood that the period of restraint would have substantially expired before final judgment, it was appropriate to assess the likelihood of the claimant's success at trial as part of the balance of convenience. The court found that damages would not be an adequate remedy for the claimant and that the balance of convenience favoured the...

Court Disposition

Interim injunction granted

Orders

  • The defendant is restrained from breaching the restrictive covenants in his contract of employment, including non-solicitation, non-competition, and non-supply clauses, for a period of six months from termination.
  • The defendant is restrained from using or disclosing confidential information belonging to the claimant.