Ove Arkil A/S/Tarmak Company Ltd. [1994] IECA 350 (6th September, 1994)

Ove Arkil A/S/Tarmak Company Ltd. [1994] IECA 350 (6th September, 1994)

The original five-year non-compete and post-employment restrictions exceeded what was necessary to secure the transfer of goodwill and thus offended section 4(1) of the Competition Act, 1991. As amended to two years and with limited post-employment restrictions, the agreement no longer offends section 4(1).

Citation
[1994] IECA 350
Parties
Purchaser: Ove Arkil A/S; Vendor: James Kelly; Vendor: Patrick Kennedy; Target Company: Tarmak Company Limited
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Final Decision
Outcome
Certificate granted; agreement as amended does not offend section 4(1) of the Competition Act, 1991.
Legal Topics
Non Compete Clauses, Sale of Business, Restrictive Covenants, Employee Agreements
Competition Law Non Compete Clauses Sale of Business Restrictive Covenants Employee Agreements

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Parties

Ove Arkil A/S

Purchaser

James Kelly

Vendor

Patrick Kennedy

Vendor

Tarmak Company Limited

Target Company

Procedural Posture

Competition Authority Notification / Final Decision

Legal Issues

  1. 1 Whether the non-compete and post-employment restrictions in the sale and service agreements offend section 4(1) of the Competition Act, 1991

Ratio Decidendi

The original five-year non-compete and post-employment restrictions exceeded what was necessary to secure the transfer of goodwill and thus offended section 4(1) of the Competition Act, 1991. As amended to two years and with limited post-employment restrictions, the agreement no longer offends section 4(1).

Court Disposition

Certificate granted; agreement as amended does not offend section 4(1) of the Competition Act, 1991.

Orders

  • Certificate issued confirming the amended agreement does not offend section 4(1) of the Competition Act, 1991.