Associated Foreign Exchange Ltd v International Foreign Exchange (UK) Ltd & Anor

Associated Foreign Exchange Ltd v International Foreign Exchange (UK) Ltd & Anor

The twelve-month non-solicitation covenant was likely to be found unenforceable at trial as it exceeded what was reasonably necessary to protect AFEX’s legitimate business interests, particularly given the competitive nature of the market, the employee’s non-senior status, and industry practice. Any period beyond...

Source-derived case information.

Parties
Claimant: Associated Foreign Exchange Limited; Defendant: International Foreign Exchange (UK) Limited; Defendant: Saeed Abbassi
Jurisdiction
England and Wales
Judgment Date
26 May 2010
Procedural Posture
Interlocutory Application (injunction) in Employment Dispute / Ruling on Application for Interim Injunction Prior to Trial
Outcome
Application for interim injunction refused; undertakings discharged.
Legal Topics
Restrictive Covenants, Non Solicitation Clauses, Enforceability of Post Employment Restraints, Injunctions, Restraint of Trade
Employment Law Contract Law Restrictive Covenants Non Solicitation Clauses Enforceability of Post Employment Restraints Injunctions Restraint of Trade

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Parties

Associated Foreign Exchange Limited

Claimant

International Foreign Exchange (UK) Limited

Defendant

Saeed Abbassi

Defendant

Procedural Posture

Interlocutory Application (injunction) in Employment Dispute / Ruling on Application for Interim Injunction Prior to Trial

Legal Issues

  1. 1 Whether the non-solicitation covenant in Mr Abbassi's employment contract is enforceable
  2. 2 Whether Mr Abbassi breached the non-solicitation covenant
  3. 3 Whether IFX induced or procured Mr Abbassi to breach the covenant

Ratio Decidendi

The twelve-month non-solicitation covenant was likely to be found unenforceable at trial as it exceeded what was reasonably necessary to protect AFEX’s legitimate business interests, particularly given the competitive nature of the market, the employee’s non-senior status, and industry practice. Any period beyond six months was likely to be objectionable. As a result, the application for an injunction was refused.

Court Disposition

Application for interim injunction refused; undertakings discharged.

Orders

  • No injunction granted; any remaining undertakings by the defendants are discharged.