Thermascan Ltd v Norman [2009] EWHC 3694 (Ch) (16 July 2009)

Thermascan Ltd v Norman [2009] EWHC 3694 (Ch) (16 July 2009)

A blanket prohibition on soliciting or canvassing clients cannot be justified post-employment absent use of confidential information or exploitation of a maturing business opportunity; the contractual restraint expired and fiduciary duties do not extend to such blanket prohibitions.

Source-derived case information.

Citation
[2009] EWHC 3694 (Ch)
Parties
Claimant: Thermascan Limited; Defendant: Norman
Jurisdiction
England and Wales
Judgment Date
16 July 2009
Procedural Posture
Interim Application for Injunction / Post Employment, Interim Hearing
Outcome
Application for interim restraining order refused
Legal Topics
Post Employment Restraints, Fiduciary Duties, Confidential Information, Non Solicitation Covenants
Employment Law Company Law Post Employment Restraints Fiduciary Duties Confidential Information Non Solicitation Covenants

Source-derived case record

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Parties

Thermascan Limited

Claimant

Norman

Defendant

Procedural Posture

Interim Application for Injunction / Post Employment, Interim Hearing

Legal Issues

  1. 1 Whether a former director can be restrained from soliciting or canvassing clients post-employment absent use of confidential information
  2. 2 Whether fiduciary duties under Companies Act 2006 justify a blanket prohibition on soliciting clients

Ratio Decidendi

A blanket prohibition on soliciting or canvassing clients cannot be justified post-employment absent use of confidential information or exploitation of a maturing business opportunity; the contractual restraint expired and fiduciary duties do not extend to such blanket prohibitions.

Court Disposition

Application for interim restraining order refused

Orders

  • Defendant's undertaking not to use or disclose confidential information continues until trial
  • No interim order prohibiting soliciting or canvassing Claimant's clients