SBJ Stephenson Ltd v Mandy [1999] EWHC 276 (QB) (30 July 1999)

SBJ Stephenson Ltd v Mandy [1999] EWHC 276 (QB) (30 July 1999)

The restrictive covenants in Mr Mandy's contract were no wider than necessary to protect SBJ's legitimate interests and were valid and enforceable. SBJ did not commit a repudiatory breach of contract; Mr Mandy was not discharged from his obligations. Mr Mandy breached the covenants by soliciting clients and using confidential information, justifying injunctions and damages.

Citation
[1999] EWHC 276 (QB)
Parties
Claimant: SBJ Stephenson Ltd; Defendant: Keith Mandy
Jurisdiction
England and Wales
Judgment Date
30 July 1999
Procedural Posture
Civil / Trial Judgment
Outcome
Judgment for claimant
Legal Topics
Restrictive Covenants, Confidential Information, Breach of Contract, Fiduciary Duties, Restraint of Trade, Damages, Injunctions
Employment Law Contract Law Restrictive Covenants Confidential Information Breach of Contract Fiduciary Duties Restraint of Trade Damages +1 more

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Parties

SBJ Stephenson Ltd

Claimant

Keith Mandy

Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Are the post-termination restrictive covenants in Mr Mandy's contract enforceable or void as unreasonable restraints of trade?
  2. 2 Did SBJ commit a repudiatory breach of contract discharging Mr Mandy from further performance of his obligations?
  3. 3 Did Mr Mandy breach valid obligations justifying continuing injunctions?

Ratio Decidendi

The restrictive covenants in Mr Mandy's contract were no wider than necessary to protect SBJ's legitimate interests and were valid and enforceable. SBJ did not commit a repudiatory breach of contract; Mr Mandy was not discharged from his obligations. Mr Mandy breached the covenants by soliciting clients and using confidential information, justifying injunctions and damages.

Court Disposition

Judgment for claimant

Orders

  • Continuing injunctions granted to enforce clauses 12A), 14(i), 14(ii), and 14(iii) of Mr Mandy's contract, with the injunction under clause 12A) to run indefinitely and the others until 4 January 2000.
  • Damages awarded to SBJ for loss of commission and brokerage fees in the amount of £47,353 for the year 1999.