Pricewaterhousecoopers LLP v Carmichael

Pricewaterhousecoopers LLP v Carmichael

PwC demonstrated a sufficiently arguable case that clause 13.10 is enforceable to protect its confidential information, business, and goodwill, satisfying the threshold for an interim injunction under American Cyanamid principles. Damages would not be an adequate remedy, and the balance of convenience does not justify refusing the injunction.

Parties
Claimant: PricewaterhouseCoopers LLP; Defendant: Nicholas Carmichael
Jurisdiction
England and Wales
Judgment Date
15 March 2019
Procedural Posture
Injunction Application / Interlocutory
Outcome
interim injunction granted
Legal Topics
Restrictive Covenants, Non Compete Clauses, Confidential Information, Arbitration Agreements, Interim Injunctions
Employment Law Partnership Law Arbitration Restrictive Covenants Non Compete Clauses Confidential Information Arbitration Agreements Interim Injunctions

Case Brief

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Parties

PricewaterhouseCoopers LLP

Claimant

Nicholas Carmichael

Defendant

Procedural Posture

Injunction Application / Interlocutory

Legal Issues

  1. 1 Whether clause 13.10 of the PwC LLP members' agreement is enforceable as a post-termination restraint
  2. 2 Whether an interim injunction should be granted to restrain the defendant from joining a competitor in breach of clause 13.10
  3. 3 Adequacy of damages as a remedy for breach of the non-compete clause

Ratio Decidendi

PwC demonstrated a sufficiently arguable case that clause 13.10 is enforceable to protect its confidential information, business, and goodwill, satisfying the threshold for an interim injunction under American Cyanamid principles. Damages would not be an adequate remedy, and the balance of convenience does not justify refusing the injunction.

Court Disposition

interim injunction granted

Orders

  • Defendant restrained from joining a competitor in breach of clause 13.10 of the PwC LLP members' agreement pending arbitration.
  • Liberty to apply to the court pending appointment of the arbitrator.