International Consulting Services (UK) Ltd v Hart [2000] EWHC 566 (QB) (26 January 2000)

International Consulting Services (UK) Ltd v Hart [2000] EWHC 566 (QB) (26 January 2000)

The restrictive covenant in Mr. Hart's contract was reasonable and enforceable given his senior position and the nature of ICS's business. Mr. Hart breached his contractual and fiduciary duties by soliciting UTA for himself while still employed by ICS and by failing to disclose relevant documents. ICS is entitled to an injunction restraining Mr. Hart from dealing with certain customers and to an inquiry as to damages or account of profits, subject to further submissions.

Citation
[2000] EWHC 566
Parties
Claimant: ICS; Defendant: Mr. Hart
Jurisdiction
England and Wales
Judgment Date
26 January 2000
Procedural Posture
Employment Contract Dispute / Judgment After Trial
Outcome
Covenant held enforceable; injunction granted in part; inquiry as to damages or account of profits ordered.
Legal Topics
Breach of Contract, Non Solicitation Covenants, Duty of Fidelity, Injunctions, Account of Profits, Damages
Employment Law Contract Law Restrictive Covenants Breach of Contract Non Solicitation Covenants Duty of Fidelity Injunctions Account of Profits +1 more

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Parties

ICS

Claimant

Mr. Hart

Defendant

Procedural Posture

Employment Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the restrictive covenant in Mr. Hart's employment contract is reasonable and enforceable
  2. 2 Whether Mr. Hart breached his contractual and fiduciary duties by soliciting ICS's customers and using confidential information
  3. 3 Whether ICS is entitled to an injunction and/or damages or account of profits

Ratio Decidendi

The restrictive covenant in Mr. Hart's contract was reasonable and enforceable given his senior position and the nature of ICS's business. Mr. Hart breached his contractual and fiduciary duties by soliciting UTA for himself while still employed by ICS and by failing to disclose relevant documents. ICS is entitled to an injunction restraining Mr. Hart from dealing with certain customers and to an inquiry as to damages or account of profits, subject to further submissions.

Court Disposition

Covenant held enforceable; injunction granted in part; inquiry as to damages or account of profits ordered.

Orders

  • Injunction restraining Mr. Hart from dealing with VIA, Belgacom, Viag, Plus GSM, and Swisscom for the relevant period.
  • Inquiry as to damages with Mr. Hart entitled to one-half of any loss found to have been suffered, with interest.