Latest news and views tagged restrictive covenant
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I was recently asked to provide an answer to an employment question posed in Jonathan Moules’ ‘Business Questions’ column in The Financial Times newspaper, which appeared in the Saturday 11 June 2011...
Developers beware of restrictive covenants – George Wimpey Bristol Ltd and Gloucestershire Housing Association Ltd
Wimpey Homes and Gloucester Housing Association applied to the Lands Tribunal to modify a restrictive covenant under section 84(1)(aa) of the Law of Property Act 1925 (LPA 1925).
The covenant stated...
Restraint of trade clause not to set up in business within five miles for 12 months was unreasonable and therefore unenforceable – Tim Russ v Simon Robertson, High Court
TR was an estate agency firm. It required its staff to enter into restrictive covenants that lasted for 12 months following termination of the contract. They included an obligation not to solicit TR’s...
Court refuses to sever offending wording in restrictive covenant clause if it affected another clause – Francotyp-Postalia v Whitehead, High Court
The franchisor and franchisee had restrictive covenants on the franchisee after termination. In order to be enforceable, restrictive covenants have to be reasonable as to duration, area and content. If...
Lonmar Global Risks Limited v West – Harmless misconduct?
HR Magazine recently published an article that I did on the case of Lonmar Global Risks Limited v West & others. The interesting point about the case was that two senior employees were found by the...
Restrictive covenant was justified to protect franchisor’s know-how – Pirtek v Joinplace, High Court
P had granted a 10 year franchise agreement to X. Following the termination of the agreement, the franchisee and others were involved in competing with P’s business. P alleged that this was in breach...