Egon Zehnder Ltd v Tillman

Egon Zehnder Ltd v Tillman

The non-compete clause is enforceable because, construed in context, it is limited to businesses with which the defendant was materially concerned, does not prohibit minor shareholdings, and is reasonable in scope and duration given the defendant's anticipated and actual engagement with protectable interests at the time of contract. Lesser protections are insufficient, and the clause is not void for being too wide.

Parties
Claimant: Egon Zehnder Ltd; Defendant: Mary Caroline Tillman
Jurisdiction
England and Wales
Judgment Date
23 May 2017
Procedural Posture
Employment/commercial / Interim Injunction Application
Outcome
Injunction granted
Legal Topics
Restrictive Covenants, Non Compete Clauses, Restraint of Trade, Injunctions, Employee Mobility
Employment Law Contract Law Restrictive Covenants Non Compete Clauses Restraint of Trade Injunctions Employee Mobility

Case Brief

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Parties

Egon Zehnder Ltd

Claimant

Mary Caroline Tillman

Defendant

Procedural Posture

Employment/commercial / Interim Injunction Application

Legal Issues

  1. 1 Whether the non-compete clause in the defendant's employment contract is enforceable
  2. 2 Whether the clause is wider than reasonably necessary to protect the claimant's legitimate business interests
  3. 3 Whether the clause prohibits shareholding in a competitor and if so, whether that renders it void

Ratio Decidendi

The non-compete clause is enforceable because, construed in context, it is limited to businesses with which the defendant was materially concerned, does not prohibit minor shareholdings, and is reasonable in scope and duration given the defendant's anticipated and actual engagement with protectable interests at the time of contract. Lesser protections are insufficient, and the clause is not void for being too wide.

Court Disposition

Injunction granted

Orders

  • The defendant is restrained from breaching the non-compete clause by taking up employment with Russell Reynolds Associates in a role competing with the claimant until the expiry of the restriction period, save for a permitted training or coaching role as conceded by the claimant.