Freshasia Foods Ltd v Jing Lu

Freshasia Foods Ltd v Jing Lu

A limited interim injunction enforcing the non-solicitation clause, with offending parts excised, is justified pending trial as there is a serious issue to be tried, the clause is arguably reasonable and severable, and the balance of convenience favours Freshasia. The non-compete clause is too broad, not reasonably necessary, and unlikely to be enforceable; no injunction is granted in respect of it.

Parties
Claimant: Freshasia Foods Limited; Defendant: Jing Lu
Jurisdiction
England and Wales
Judgment Date
04 January 2019
Procedural Posture
Employment/restrictive Covenants (interim Injunction) / Interlocutory Application for Interim Injunction Pending Trial
Outcome
Interim injunction granted in limited form; non-solicitation clause enforced with modifications; non-compete clause refused.
Legal Topics
Non Solicitation Clauses, Non Compete Clauses, Severance of Contractual Terms, Balance of Convenience, Enforceability of Post Termination Restrictions
Employment Law Contract Law Restrictive Covenants Non Solicitation Clauses Non Compete Clauses Severance of Contractual Terms Balance of Convenience Enforceability of Post Termination Restrictions

Case Brief

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Parties

Freshasia Foods Limited

Claimant

Jing Lu

Defendant

Procedural Posture

Employment/restrictive Covenants (interim Injunction) / Interlocutory Application for Interim Injunction Pending Trial

Legal Issues

  1. 1 Whether the non-solicitation clause in the defendant's employment contract is enforceable and justifies interim injunctive relief
  2. 2 Whether the non-compete clause is enforceable and justifies interim injunctive relief
  3. 3 Whether offending parts of the non-solicitation clause are severable

Ratio Decidendi

A limited interim injunction enforcing the non-solicitation clause, with offending parts excised, is justified pending trial as there is a serious issue to be tried, the clause is arguably reasonable and severable, and the balance of convenience favours Freshasia. The non-compete clause is too broad, not reasonably necessary, and unlikely to be enforceable; no injunction is granted in respect of it.

Court Disposition

Interim injunction granted in limited form; non-solicitation clause enforced with modifications; non-compete clause refused.

Orders

  • Defendant restrained until trial from soliciting the custom of, selling or delivering to, any customer of the Claimant to whom he had personally sold or delivered products or whom he had introduced or approached on behalf of the Claimant, as at 28 September 2018, in respect of food products sold to Chinese retail...
  • No injunction granted to prevent Defendant from working for Kung Fu or any other competitor.