Tensator Group Ltd. & Anor v Falzon & Ors [2004] EWHC 3440 (Ch) (21 July 2004)

Tensator Group Ltd. & Anor v Falzon & Ors [2004] EWHC 3440 (Ch) (21 July 2004)

The balance of convenience does not favour granting further interim relief beyond existing undertakings, given the four-month operation of the defendants' business, delays largely attributable to lack of court time, and the adequacy of undertakings to protect confidential information. Damages are not clearly adequate, but the additional harm to claimants is limited and the restrictive covenants' enforceability remains a triable issue.

Citation
[2004] EWHC 3440 (Ch)
Parties
Claimant: Tensator Group Limited; Claimant: Tensator Group Limited & Anr; Defendant: Falzon; Defendant: Tracy Falzon; Defendant: Stephen Yule; Defendant: David Tuppin; Defendant: Trak Design Limited; Defendant: Xtracs Limited
Jurisdiction
England and Wales
Judgment Date
21 July 2004
Procedural Posture
Interlocutory Application / Interim Relief Hearing
Outcome
application refused
Legal Topics
Restrictive Covenants, Confidential Information, Injunctive Relief, Balance of Convenience, Clean Hands Doctrine, Non Disclosure, Abuse of Process
Employment Law Equity Commercial Law Restrictive Covenants Confidential Information Injunctive Relief Balance of Convenience Clean Hands Doctrine +2 more

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Parties

Tensator Group Limited

Claimant

Tensator Group Limited & Anr

Claimant

Falzon

Defendant

Tracy Falzon

Defendant

Stephen Yule

Defendant

David Tuppin

Defendant

Trak Design Limited

Defendant

Xtracs Limited

Defendant

Procedural Posture

Interlocutory Application / Interim Relief Hearing

Legal Issues

  1. 1 Whether interim injunctive relief should be granted to enforce restrictive covenants against former employees
  2. 2 Whether the claimants come to equity with clean hands
  3. 3 Whether the restrictive covenants are reasonable and enforceable

Ratio Decidendi

The balance of convenience does not favour granting further interim relief beyond existing undertakings, given the four-month operation of the defendants' business, delays largely attributable to lack of court time, and the adequacy of undertakings to protect confidential information. Damages are not clearly adequate, but the additional harm to claimants is limited and the restrictive covenants' enforceability remains a triable issue.

Court Disposition

application refused

Orders

  • No further order beyond existing undertakings, which remain in force until trial or further order