Freshasia Foods Ltd v Lu [2019] EWHC 638 (Ch) (20 March 2019)

Freshasia Foods Ltd v Lu [2019] EWHC 638 (Ch) (20 March 2019)

The restrictive covenants in the Employee Handbook were incorporated into the contract but the non-compete clause was unenforceable as drafted due to excessive scope; the non-solicitation clause was enforceable only in a pared-down form. No actionable misuse of confidential information or copyright/database right infringement was proven. Injunctive relief was refused for the non-compete clause; limited relief was granted for the non-solicitation clause.

Citation
[2019] EWHC 638 (Ch)
Parties
Claimant: Freshasia Foods Limited; Defendant: Jing Lu
Jurisdiction
England and Wales
Judgment Date
20 March 2019
Procedural Posture
Intellectual Property/employment / Final Judgment After Expedited Trial
Outcome
Claim dismissed in part; limited injunction granted for pared-down non-solicitation clause; no relief for non-compete or copyright/database claims.
Legal Topics
Restrictive Covenants, Non Compete Clauses, Non Solicitation Clauses, Misuse of Confidential Information, Copyright Infringement, Database Right
Employment Law Intellectual Property Law Restrictive Covenants Non Compete Clauses Non Solicitation Clauses Misuse of Confidential Information Copyright Infringement Database Right

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Parties

Freshasia Foods Limited

Claimant

Jing Lu

Defendant

Procedural Posture

Intellectual Property/employment / Final Judgment After Expedited Trial

Legal Issues

  1. 1 Whether restrictive covenants in the Employee Handbook were incorporated into the employment contract
  2. 2 Whether the non-compete and non-solicitation clauses are enforceable
  3. 3 Whether the defendant misused confidential information

Ratio Decidendi

The restrictive covenants in the Employee Handbook were incorporated into the contract but the non-compete clause was unenforceable as drafted due to excessive scope; the non-solicitation clause was enforceable only in a pared-down form. No actionable misuse of confidential information or copyright/database right infringement was proven. Injunctive relief was refused for the non-compete clause; limited relief was granted for the non-solicitation clause.

Court Disposition

Claim dismissed in part; limited injunction granted for pared-down non-solicitation clause; no relief for non-compete or copyright/database claims.

Orders

  • Interim injunction enforcing pared-down non-solicitation clause until expiry of leaving period
  • No injunction for non-compete clause