Restrictive Covenants & High Court Employment Disputes
We have experience in advising on various types of disputes relating to restrictive covenants
Contracts often include clauses that restrict the actions of an employee, director or agent, both during the contract and after it has ended. Litigation relating to these types of clauses, however, is not always straightforward.
For employers, a breach of these terms can have potentially disastrous consequences for your business. For an employee being faced with a claim, it can have a significant impact on your personal and professional life.
Whichever side you are on, we understand the pressures you are faced with and the need for clear advice and urgent action. We will work with you to resolve the dispute in the most effective and efficient way we can, whatever outcome you are looking for.
We have considerable experience in advising and representing various types of clients in disputes relating to restrictive covenants including:
The enforceability of the clause
Applications for interim injunctions
Claims for damages and other remedies
Negotiating settlements, before or after the commencement of Court proceedings
Early expert advice is key to putting the right strategy in place and getting on the front foot in any dispute, giving you the best chance to resolve the situation quickly and effectively.
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Dispute background
We were instructed by a large national company that had acquired a regional business as part of its planned expansion. Our client purchased the entire share capital of the company, along with its extensive customer base, through a share purchase agreement.
The share purchase agreement included restrictive covenants that were intended to safeguard the buyer's commercial interests. One of these restrictive covenants was a comprehensive non-compete clause pertaining to the outgoing directors' business interests.
Our client noticed that following payment of the final deferred consideration amounts, a number of existing customers were terminating their contracts. Our client feared this could be the tip of the iceberg. Investigations quickly established that one of the outgoing directors had set up a competing business and was contacting customers.
Our approach
Our client promptly engaged us, and we urgently sent a ‘cease & desist’ letter to the outgoing director, asserting our client’s rights to pursue injunctive relief to prevent his ongoing unlawful conduct.
Dispute resolution
The director provided us with written undertakings, confirming that he would desist from any competing activities and strictly adhere to the restrictive covenants in the share purchase agreement, to include ceasing to provide services for those customers he had already moved across. He also provided full disclosure of the clients he had contacted. This enabled our client to minimise any further loss of customers by engaging with them.
In cases like this, prompt consultation is crucial to ensure that all rights are preserved and the client does not inadvertently waive rights to any form of relief due to delays in asserting those claims. As we acted immediately on behalf of our client once engaged, we were able to secure a swift and decisive resolution.
What our partners & referrers say
Resources & Guides
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A Litigator's Guide to Mediation
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A Litigator's Guide to Injunctions
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A Litigator's Guide to Shareholder Disputes
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Meet our team
Our solicitors are specialists in managing disputes and providing claims, risk management and strategic advice.
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Contact us
Get in touch with our Bristol and London teams to discuss your requirements.
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Partners & Referrers
Much of our work is referred by other solicitors, in-house counsel and other like-minded professionals.