OTS Logistics Belgium NV & Anor v Clarke & Anor [2010] EWHC 3202 (QB) (06 December 2010)

OTS Logistics Belgium NV & Anor v Clarke & Anor [2010] EWHC 3202 (QB) (06 December 2010)

There is a serious issue to be tried regarding whether Mr Clarke has breached restrictive covenants by competing and soliciting suppliers, and whether he possesses or is likely to use confidential information. However, the evidence of solicitation of customers and Mr Retana is too tenuous. Damages are not an adequate remedy for either party. The balance of convenience does not clearly favour either side, and the appropriate course is to order a speedy trial rather than grant an interim injunction.

Citation
[2010] EWHC 3202 (QB)
Parties
Claimant: OTS Logistics Belgium NV; Claimant: Ocean Express Limited; Defendant: Robert Paul Clarke; Defendant: Britam Shipping Ltd
Jurisdiction
England and Wales
Judgment Date
06 December 2010
Procedural Posture
Interim Injunction Application / Interlocutory
Outcome
Interim injunction refused; speedy trial ordered.
Legal Topics
Restrictive Covenants, Confidential Information, Non Compete Clauses, Solicitation, Interim Injunctions
Commercial Law Employment Law Restrictive Covenants Confidential Information Non Compete Clauses Solicitation Interim Injunctions

Case Brief

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Parties

OTS Logistics Belgium NV

Claimant

Ocean Express Limited

Claimant

Robert Paul Clarke

Defendant

Britam Shipping Ltd

Defendant

Procedural Posture

Interim Injunction Application / Interlocutory

Legal Issues

  1. 1 Whether the defendants breached restrictive covenants in a share sale and purchase agreement and a director's service agreement by competing, soliciting, or misusing confidential information.
  2. 2 Whether an interim injunction should be granted to restrain alleged breaches.

Ratio Decidendi

There is a serious issue to be tried regarding whether Mr Clarke has breached restrictive covenants by competing and soliciting suppliers, and whether he possesses or is likely to use confidential information. However, the evidence of solicitation of customers and Mr Retana is too tenuous. Damages are not an adequate remedy for either party. The balance of convenience does not clearly favour either side, and the appropriate course is to order a speedy trial rather than grant an interim injunction.

Court Disposition

Interim injunction refused; speedy trial ordered.

Orders

  • No interim injunction granted against the defendants.
  • Defendant Mr Clarke to swear an affidavit confirming he holds no documents or information belonging to the claimants or their associates and to give the undertaking set out in his first witness statement.