Restrictive covenants and the importance of context
In Merlin Financial Consultants Ltd v Cooper, Mr Cooper was a financial adviser employed by Merlin. He had already established a considerable reputation and following before joining Merlin. When he joined Merlin he signed two contracts: the first was an employment contract, which contained a post-termination covenant preventing him from competing with Merlin for six months following termination of his employment.
The second contract was described as a ‘goodwill agreement’. Under this agreement Merlin purchased the goodwill in, and the right to receiver future income from Mr Cooper’s client base. This agreement contained a post-termination covenant by which for a period of one year after termination of his employment, Mr Cooper agreed not, in any part of the UK, to ‘be engaged, concerned or interested in, or provide financial support or management services or technical, commercial or professional advice to any other business which supplies goods and/or services which are competitive with or of the type supplied by [Merlin]’.
Mr Cooper decided to leave Merlin and set up in competition. Merlin brought a breach of contract claim against him and Mr Cooper challenged the validity of the restrictive covenant in the goodwill agreement…
Click on the link below to read the rest of the Walker Morris briefing.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
DECC has released its report summarising the responses received and action to be taken regarding underground access for gas, oil and geothermal developers.
Intellectual property disputes involving retailers and fashion are all too common; another one to have troubled the courts in recent months is Thomas Pink v Victoria’s Secret UK.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.