Pricewaterhousecoopers LLP v Carmichael [2019] EWHC 824 (Comm) (15 March 2019)

Pricewaterhousecoopers LLP v Carmichael [2019] EWHC 824 (Comm) (15 March 2019)

PwC demonstrated a serious issue to be tried regarding the enforceability of clause 13.10; damages would not be an adequate remedy; the American Cyanamid test applies; and the balance of convenience favours granting the interim injunction pending arbitration.

Citation
[2019] EWHC 824 (Comm)
Parties
Claimant: PricewaterhouseCoopers LLP; Defendant: Nicholas Carmichael
Jurisdiction
England and Wales
Judgment Date
15 March 2019
Procedural Posture
Interim Injunction Application Under Arbitration Act 1996 S.44(3) / Hearing of Application for Interim Injunction Pending Arbitration
Outcome
Interim injunction granted restraining the defendant from joining a competitor pending arbitration.
Legal Topics
Restrictive Covenants, Non Compete Clauses, Interim Injunctions, Enforceability of Post Termination Restraints, Arbitration Agreements
Employment Law Arbitration Partnership Law Restrictive Covenants Non Compete Clauses Interim Injunctions Enforceability of Post Termination Restraints Arbitration Agreements

Case Brief

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Parties

PricewaterhouseCoopers LLP

Claimant

Nicholas Carmichael

Defendant

Procedural Posture

Interim Injunction Application Under Arbitration Act 1996 S.44(3) / Hearing of Application for Interim Injunction Pending Arbitration

Legal Issues

  1. 1 Whether clause 13.10 of the PwC LLP members' agreement (non-compete clause) is enforceable
  2. 2 Whether an interim injunction should be granted restraining the defendant from joining a competitor pending arbitration
  3. 3 Appropriate legal test for granting interim relief in the context of arbitration and restrictive covenants

Ratio Decidendi

PwC demonstrated a serious issue to be tried regarding the enforceability of clause 13.10; damages would not be an adequate remedy; the American Cyanamid test applies; and the balance of convenience favours granting the interim injunction pending arbitration.

Court Disposition

Interim injunction granted restraining the defendant from joining a competitor pending arbitration.

Orders

  • Defendant restrained from joining FTI Consulting or any competitor of PwC for six months from retirement date, pending arbitration.
  • Parties to agree on the drafting of the order to ensure a speedy arbitration hearing and liberty to apply to the court pending appointment of the arbitrator.