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ARTICLE · 03 SEPTEMBER 2019

Dealing With Team Moves And Protecting Your Business: Lessons Learnt From A Recent Case

On June 14, 2019, the Hong Kong Court of First Instance handed down an interlocutory decision in McLarens Hong Kong Ltd v. Poon Chi Fai, Corey & Or, [2019]

Hong KongEmployment and HR

On June 14, 2019, the Hong Kong Court of First Instance handed down an interlocutory decision in McLarens Hong Kong Ltd v. Poon Chi Fai, Corey & Or, [2019] HKCFI 1550, refusing to grant a springboard injunction sought by McLarens against nine of its former employees and their new employer, a competitor, after a pre-planned team move. Unsurprisingly, the team move was shortly followed by mass exodus of McLarens' customers, who requested that their business be transferred to the tenth defendant, the employees' new employer.

Unfortunately, none of the employees' employment contracts contained any restrictive covenants. In the course of the interlocutory proceedings, it was found that some of the employees had copied and removed vast quantities of McLarens' information and documents, at least some of which were confidential.

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