Restrictive Covenants: Recent Cases

To be enforceable, restrictive covenants should go no further than is reasonably necessary to protect the legitimate business interests of the employer. To determine whether a covenant is acceptable the courts will consider the duration, scope and geographical limitations of the covenant. This DechertOnPoint considers some recent cases that deal with issues of enforceability and breach of restrictive covenants.

Towry EJ Limited v Barry Bennett and others (High Court, 2012): Proving Solicitation

The defendants were financial advisers and stockbrokers who were employed by Towry EJ Limited ("TEJ"). The defendants resigned or were dismissed for redundancy following the sale of TEJ and went to work for a competitor. A large number of clients followed the defendants to the competitor company. TEJ claimed that the defendants had breached their post-termination restrictions which prohibited them from soliciting clients for 12 months after the termination of their