Lusona Consultancy (Accountancy & Finance) Ltd v McEwan & Anor [2017] ScotCS CSOH_52 (24 March 2017)

Clause 29 contains more than one covenant; the area covenant is severable from the other restrictions relied upon by the pursuers, and its unenforceability does not render the remaining covenants unenforceable.

Citation: [2017] ScotCS CSOH_52
Parties: Pursuer: Lusona Consultancy (Accountancy & Finance) Ltd; First Defender: David McEwan; Second Defender: Anderson Knight Limited
Jurisdiction: Scotland
Judgment Date: 24 March 2017
Procedural Posture: Commercial Action / Interlocutory Hearing on Enforceability and Severability of Restrictive Covenants
Outcome: First defender’s first and fourth pleas-in-law repelled to the extent stated; further procedure to be determined by order.
Legal Topics: Restrictive Covenants, Restraint of Trade, Severability, Interdict

Employment Law Contract Law Restrictive Covenants Restraint of Trade Severability Interdict

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Parties

Lusona Consultancy (Accountancy & Finance) Ltd

Pursuer

David McEwan

First Defender

Anderson Knight Limited

Second Defender

Procedural Posture

Commercial Action / Interlocutory Hearing on Enforceability and Severability of Restrictive Covenants

Legal Issues

1 Whether the restrictive covenant in clause 29 of the employment contract is enforceable
2 Whether the area covenant can be severed from other covenants in clause 29

Ratio Decidendi

Court Disposition

First defender’s first and fourth pleas-in-law repelled to the extent stated; further procedure to be determined by order.

Orders

The covenant relied upon by the pursuers is severable from the area covenant and remains enforceable.
Case to be put out By Order for further procedure.