Hong Kong Case Law: Decisions & Judgments

Topic

Enforceability of restrictive covenants

Legal area

Court

22 Jul 2024

CY CLEANING HYGIENE LTD v. CHAN KAI WAH AND OTHERS

Citation

[2024] HKCFI 1904
Court

Court of First Instance
Case number

HCA11/2024

The court exercised its discretion to grant a 28-day retrospective extension because the 1st and 2nd defendants acted expeditiously, this was their first extension application, there was no significant or culpable delay nor demonstrable prejudice to the plaintiff, and the Defence discloses a reasonably arguable challenge to the enforceability of the restrictive covenants; accordingly the Appeal was dismissed and the EOT Decision upheld; the DJ summons fell away as against those defendants while default judgment was entered against the unrepresented 3rd defendant.
5 Apr 2024

MANULIFE FINANCIAL ASIA LTD v. KENNETH JOSEPH RAPPOLD AND OTHERS

Citation

[2024] HKCFI 989
Court

Court of First Instance
Case number

HCA580/2024

The interim-interim injunction was refused because on the present evidence the Plaintiff lacked a reasonably good prospect of showing the worldwide 12-month NCC was enforceable (no geographic limit, overbroad scope and insufficient specificity on confidential information and necessity of a 12-month restraint), and the balance of convenience favored refusal given the real risk of irreparable harm to the 1st Defendant's employment opportunity and because a confidentiality undertaking provided adequate interim protection; delay by the Plaintiff also undermined its claim to urgent relief.
12 Apr 2018

WINTA INVESTMENT (HONG KONG) LTD v. NG KAM CHIT

Citation

[2018] HKDC 342
Court

District Court
Case number

DCCJ1620/2012

The plaintiff failed to prove on the facts that the defendant solicited its customers after leaving employment; the court preferred the defendant's and Noble Gainer's contemporaneous evidence over the plaintiff's inconsistent witness accounts; because solicitation was not established the claim fails and is dismissed (no need to enforce Clause 9).
28 Nov 2007

HSBC BANK PLC AND ANOTHER v. STEVEN ANDREW WALLACE

Citation

HSBC BANK PLC AND ANOTHER v. STEVEN ANDREW WALLACE
Court

Court of First Instance
Case number

HCA2422/2007

There is a serious question to be tried and a strong likelihood that the Employment Ordinance does not apply because the proper law and employer are English; the non-compete clause is likely to be found reasonable and necessary to protect HSBC's confidential information/trade secrets; damages would be inadequate; accordingly interlocutory injunctions restraining Defendant from working for Citigroup until 28 December 2007 and from being concerned in competing Asia-Pacific business for six months after termination (less garden leave) should be granted pending trial.
2 Nov 1998

SCANO (H.K.) LTD. v. CHEONG KIM CHOY

Citation

SCANO (H.K.) LTD. v. CHEONG KIM CHOY
Court

Court of First Instance
Case number

HCA18301/1998

The application was dismissed because the plaintiff's substantial unexplained delay (3–5 months) rendered an ex parte interlocutory injunction inappropriate and abusive of process; accordingly the plaintiff was ordered to pay the defendant's costs on an indemnity basis. The court did not decide the merits of the restrictive covenant issue at this interlocutory ex parte stage.
28 Jul 1993

CLUB DELUXE LIMITED v. CLUB METROPOLITAN LIMITED AND OTHERS

Citation

CLUB DELUXE LIMITED v. CLUB METROPOLITAN LIMITED AND OTHERS
Court

Court of First Instance
Case number

HCA8339/1990

Court held that on the balance of probabilities Miss Chan had signed a written contract and breached it by failing to give reasonable notice (one month) but Plaintiff failed to prove substantial loss beyond admitted monthly entitlements; Mr Yu's prior contract was abrogated by his transfer to Macau so restrictive covenants were not enforceable against him; 1st Defendant lacked actual or imputed knowledge of a written contract and did not tortiously induce breach; therefore Plaintiff recovered limited damages equivalent to admitted amounts with mutual set-off and other claims dismissed.

Hong Kong Case Law

CY CLEANING HYGIENE LTD v. CHAN KAI WAH AND OTHERS

MANULIFE FINANCIAL ASIA LTD v. KENNETH JOSEPH RAPPOLD AND OTHERS

WINTA INVESTMENT (HONG KONG) LTD v. NG KAM CHIT

HSBC BANK PLC AND ANOTHER v. STEVEN ANDREW WALLACE

SCANO (H.K.) LTD. v. CHEONG KIM CHOY

CLUB DELUXE LIMITED v. CLUB METROPOLITAN LIMITED AND OTHERS