Mulvein v Murray [1908] ScotCS CSIH_3 (31 January 1908)

Mulvein v Murray [1908] ScotCS CSIH_3 (31 January 1908)

The restrictive covenant prohibiting the defender from canvassing customers for twelve months is valid and enforceable, but the clause prohibiting travel or trading in any towns or districts traded in by the pursuer is unreasonably wide and vague, and thus void. The valid part is separable and enforceable only to the extent of prohibiting canvassing of former customers within the specified period.

Citation
[1908] ScotCS CSIH_3
Parties
Pursuer: George Mulvein; Defender: Murray
Jurisdiction
Scotland
Judgment Date
31 January 1908
Procedural Posture
Civil / Appeal
Outcome
partially allowed
Legal Topics
Restraint of Trade, Restrictive Covenants, Employment Contracts, Severability of Contract Terms
Contract Law Competition Law Restraint of Trade Restrictive Covenants Employment Contracts Severability of Contract Terms

Case Brief

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Parties

George Mulvein

Pursuer

Murray

Defender

Procedural Posture

Civil / Appeal

Legal Issues

  1. 1 Whether the restrictive covenant in the employment contract is enforceable
  2. 2 Whether the restraint imposed is reasonable and necessary for the protection of the pursuer
  3. 3 Whether the obligation is severable or indivisible

Ratio Decidendi

The restrictive covenant prohibiting the defender from canvassing customers for twelve months is valid and enforceable, but the clause prohibiting travel or trading in any towns or districts traded in by the pursuer is unreasonably wide and vague, and thus void. The valid part is separable and enforceable only to the extent of prohibiting canvassing of former customers within the specified period.

Court Disposition

partially allowed

Orders

  • Interdict granted against defender from selling boots and shoes to or canvassing customers of pursuer prior to 27th October 1906, specifically those named in the petition.
  • No interdict granted beyond this scope.