Basic Solutions Ltd v Sands

Basic Solutions Ltd v Sands

The claimant failed to demonstrate a serious issue to be tried regarding breach of contract or breach of confidence. The restrictive covenants were held to be unenforceable due to excessive duration and scope, and there was no evidence that the defendant misused confidential information. The balance of convenience favoured the defendant, as an injunction would stifle legitimate competition without protecting any proven proprietary interest.

Parties
Claimant: Basic Solutions Limited; Defendant: Robert Sands
Jurisdiction
England and Wales
Judgment Date
23 June 2008
Procedural Posture
Civil / Interim Injunction Application
Outcome
Application for interim injunction refused
Legal Topics
Restrictive Covenants, Breach of Confidence, Interim Injunctions, Non Compete Clauses
Employment Law Contract Law Equity Restrictive Covenants Breach of Confidence Interim Injunctions Non Compete Clauses

Case Brief

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Parties

Basic Solutions Limited

Claimant

Robert Sands

Defendant

Procedural Posture

Civil / Interim Injunction Application

Legal Issues

  1. 1 Whether the defendant breached restrictive covenants in his employment contract
  2. 2 Whether the defendant misused confidential information or know-how of the claimant
  3. 3 Whether the restrictive covenants are enforceable

Ratio Decidendi

The claimant failed to demonstrate a serious issue to be tried regarding breach of contract or breach of confidence. The restrictive covenants were held to be unenforceable due to excessive duration and scope, and there was no evidence that the defendant misused confidential information. The balance of convenience favoured the defendant, as an injunction would stifle legitimate competition without protecting any proven proprietary interest.

Court Disposition

Application for interim injunction refused