Derma Med Limited & Anor v Dr Zack Ally & Ors

Derma Med Limited & Anor v Dr Zack Ally & Ors

The failures of disclosure by the claimants were not deliberate and were of limited significance; the interests of justice required continuation of the injunction. Damages were not an adequate remedy due to evidential difficulties and the nature of the contractual bargain. An injunction was the appropriate remedy to enforce the restrictive covenants and protect confidential information.

Parties
Appellant/claimant: Derma Med Limited; Appellant/claimant: Peal Athena Limited; Respondent/defendant: Dr Zack Ally; Respondent/defendant: Zackally Limited; Respondent/defendant: Dr Sanah Qasemzahi
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Appeal From High Court Decision
Outcome
Appeal allowed
Legal Topics
Restrictive Covenants, Confidential Information, Interim Injunctions, Full and Frank Disclosure, Repudiatory Breach, Adequacy of Damages
Contract Law Employment Law Commercial Law Restrictive Covenants Confidential Information Interim Injunctions Full and Frank Disclosure Repudiatory Breach +1 more

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Parties

Derma Med Limited

Appellant/claimant

Peal Athena Limited

Appellant/claimant

Dr Zack Ally

Respondent/defendant

Zackally Limited

Respondent/defendant

Dr Sanah Qasemzahi

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Decision

Legal Issues

  1. 1 Whether failures of full and frank disclosure justified discharge of the injunction
  2. 2 Whether a fresh injunction should be granted to restrain competition and protect confidential information
  3. 3 Adequacy of damages as a remedy for breach of restrictive covenants

Ratio Decidendi

The failures of disclosure by the claimants were not deliberate and were of limited significance; the interests of justice required continuation of the injunction. Damages were not an adequate remedy due to evidential difficulties and the nature of the contractual bargain. An injunction was the appropriate remedy to enforce the restrictive covenants and protect confidential information.

Court Disposition

Appeal allowed

Orders

  • Interim injunction granted restraining Dr Ally from competing with Derma Med until 24th March 2024
  • Interim injunction granted restraining use of claimants’ confidential information until trial