Helmet Integrated Systems Ltd v Tunnard & Ors

Helmet Integrated Systems Ltd v Tunnard & Ors

Mr Tunnard’s preparatory activities, undertaken while still employed, did not breach any duty of fidelity or fiduciary duty because his contract and job specification did not expressly or impliedly restrict his right to prepare for future competition, and he was not in a position of exclusive loyalty or trust that would give rise to a fiduciary obligation to report his own conduct.

Parties
Appellant: Helmet Integrated Systems Ltd; Respondent: Tunnard & Others
Jurisdiction
England and Wales
Judgment Date
15 December 2006
Procedural Posture
Civil Appeal / Appeal From Patents County Court Judgment
Outcome
appeal dismissed
Legal Topics
Duty of Fidelity, Fiduciary Duties, Employee Competition, Preparatory Acts, Contractual Obligations
Employment Law Equity Duty of Fidelity Fiduciary Duties Employee Competition Preparatory Acts Contractual Obligations

Case Brief

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Parties

Helmet Integrated Systems Ltd

Appellant

Tunnard & Others

Respondent

Procedural Posture

Civil Appeal / Appeal From Patents County Court Judgment

Legal Issues

  1. 1 Did Mr Tunnard breach his duty of fidelity by preparing to compete with his employer while still employed?
  2. 2 Did Mr Tunnard owe and breach a fiduciary duty to HISL by failing to report his own preparatory activities?
  3. 3 Did the job specification or contract restrict Mr Tunnard’s right to prepare for future competition?

Ratio Decidendi

Mr Tunnard’s preparatory activities, undertaken while still employed, did not breach any duty of fidelity or fiduciary duty because his contract and job specification did not expressly or impliedly restrict his right to prepare for future competition, and he was not in a position of exclusive loyalty or trust that would give rise to a fiduciary obligation to report his own conduct.

Court Disposition

appeal dismissed