TFS Derivatives Led v Morgan

TFS Derivatives Led v Morgan

Clause 12.1(a), construed as restricting the defendant from engaging in the same business activity (not entity) as he performed at TFS, and with severance of the words 'or similar to', is no wider than reasonably necessary to protect TFS's legitimate interests and is enforceable. Injunctive relief is appropriate for clause 12.1(a), but not for 12.1(b) and (c) due to lack of evidence of breach.

Parties
Claimant: TFS Derivatives Limited; Defendant: Simon Morgan
Jurisdiction
England and Wales
Judgment Date
15 November 2004
Procedural Posture
Employment / Final Judgment
Outcome
Claimant succeeds in part; clause 12.1(a) enforceable with severance of 'or similar to'; injunctive relief granted for 12.1(a) only.
Legal Topics
Restraint of Trade, Restrictive Covenants, Garden Leave, Injunctive Relief, Confidential Information
Employment Law Contract Law Restraint of Trade Restrictive Covenants Garden Leave Injunctive Relief Confidential Information

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Parties

TFS Derivatives Limited

Claimant

Simon Morgan

Defendant

Procedural Posture

Employment / Final Judgment

Legal Issues

  1. 1 Whether clause 12.1(a) of the employment contract is void as being in unlawful restraint of trade
  2. 2 Whether the restrictive covenants are reasonable and enforceable
  3. 3 Whether injunctive relief should be granted

Ratio Decidendi

Clause 12.1(a), construed as restricting the defendant from engaging in the same business activity (not entity) as he performed at TFS, and with severance of the words 'or similar to', is no wider than reasonably necessary to protect TFS's legitimate interests and is enforceable. Injunctive relief is appropriate for clause 12.1(a), but not for 12.1(b) and (c) due to lack of evidence of breach.

Court Disposition

Claimant succeeds in part; clause 12.1(a) enforceable with severance of 'or similar to'; injunctive relief granted for 12.1(a) only.

Orders

  • Defendant restrained from engaging in business activity competitive with TFS as defined in clause 12.1(a) until 22 December 2004, excluding 'or similar to'.
  • No injunction granted for clauses 12.1(b) and (c).