APEX RESOURCES LTD AGAINST ROSS MACDOUGALL AND OTHERS [2021] ScotCS CSOH_40 (09 April 2021)

APEX RESOURCES LTD AGAINST ROSS MACDOUGALL AND OTHERS [2021] ScotCS CSOH_40 (09 April 2021)

The non-compete clause is no wider than reasonably necessary to protect the pursuer's legitimate business interests, specifically its client and candidate relationships and workforce integrity. The clause is sector-specific, limited in duration and scope, and does not render the former employees unemployable. The pursuer has presented a strong prima facie case for enforceability, and the balance of convenience favours maintaining the interim interdict.

Citation
[2021] ScotCS CSOH_40
Parties
Pursuer: Apex Resources Limited; First Defender: Ross MacDougall; Second Defender: Lisa Mulholland; Third Defender: Jenna Hill or Seagriff; Fourth Defender: Caval Limited
Jurisdiction
Scotland
Judgment Date
09 April 2021
Procedural Posture
Commercial Action / Interim Interdict Recall Hearing
Outcome
motion for recall refused
Legal Topics
Restrictive Covenants, Non Compete Clauses, Breach of Confidence, Interim Interdicts
Employment Law Contract Law Restrictive Covenants Non Compete Clauses Breach of Confidence Interim Interdicts

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Parties

Apex Resources Limited

Pursuer

Ross MacDougall

First Defender

Lisa Mulholland

Second Defender

Jenna Hill or Seagriff

Third Defender

Caval Limited

Fourth Defender

Procedural Posture

Commercial Action / Interim Interdict Recall Hearing

Legal Issues

  1. 1 Whether the non-compete clause in the employment contracts is enforceable
  2. 2 Whether the scope and duration of the interim interdict is reasonable and necessary to protect legitimate business interests

Ratio Decidendi

The non-compete clause is no wider than reasonably necessary to protect the pursuer's legitimate business interests, specifically its client and candidate relationships and workforce integrity. The clause is sector-specific, limited in duration and scope, and does not render the former employees unemployable. The pursuer has presented a strong prima facie case for enforceability, and the balance of convenience favours maintaining the interim interdict.

Court Disposition

motion for recall refused

Orders

  • Interim interdicts against the former employees in respect of the non-compete clause remain in force until their respective expiry dates.
  • Undertakings by the former employees in respect of other restrictive covenants accepted.