| Summary |
RESTRAINT OF TRADE - Applicant sought to prevent respondent from working for new employer (“F”) until expiry of restraint of trade - Respondent opposed to application but offered undertakings - Undertakings not accepted by applicant - Respondent claimed applicant did not come to Authority with clean hands and any relief would be inequitable - Respondent had access to applicant's confidential information such as pricing manual, client data base lists, performance figures, and general business strategy information - Respondent also developed close working relationships with applicant’s customers - Applicant claimed was risk respondent would deliberately or inadvertently disclose confidential information to F - Claimed respondent’s replacement needed time to get up to speed with accounts, contracts and customer relationships - Authority found was proprietary interest to protect - Found restraint of trade in public interest because of competitive nature of applicant’s industry - Found parties entered freely into restraint - Found length of restraint and geographical scope reasonable given nature and competition in industry and especially between applicant and F - Found respondent deliberately breached restraint in taking up position with F in knowledge had restraint of trade clause in employment agreement - Found was no evidence of any other breaches of confidentiality and remaining terms of restraint - Respondent’s claim enforcement of restraint should be mitigated because undertakings had been agreed with other employees rejected - Authority ordered respondent not to carry on or be connected, engaged or interested, either directly or indirectly, alone or with any other person, in any business of F’s which competed directly or indirectly with applicant’s business, without prior written permission of applicant until specified date - Authority modified respondent’s undertakings to comply with terms of restraint in employment agreement, and ordered as follows - Respondent to comply with on going obligations of confidentiality to applicant as set out in employment agreement until specified date - Respondent not to directly or indirectly, alone or with any other person, induce or persuade or attempt to induce or persuade any of applicant’s clients, suppliers or customers to terminate or restrict their business relations with applicant until specified date - Respondent not to directly or indirectly, solicit or endeavour to entice away any of applicant’s employees or contractors until specified date - Commercial Account Manager |