Business Protection: Protecting Confidential Information, Restrictive Covenants, Fiduciary Duties & Team Moves

We understand that the life blood of a business is its confidential information, its clients and its people.

We have a wealth of experience in the protection of those interests from unfair competition and employee misconduct arising from the misuse of confidential information and potential or actual breaches of post termination restrictive covenants.

We are experts in this complex area of law and routinely advise businesses on the scope and enforceability of the post termination restraints in their employees’ contracts so that they can navigate the potential minefields in this area and enable them to properly protect their legitimate business interests.

We are often involved at the pre-employment stage of such business protection in the drafting and introduction of appropriate post-termination restrictions in Service Agreements and employment contracts. These restrictions have to be drafted carefully in order for them to be enforceable or they will be void as a restraint of trade. This is a fine line and we will work closely with the business to ensure that post-termination restrictions reasonably protect its legitimate business interests and are appropriate to the role of the employee being restricted. We also advise on the effective introduction of new post-termination restrictions during employment and the issue of consideration for those restrictions that will arise.

The enforceability of post termination restraints turns on the facts of each specific case, and we will provide a clear analysis of the merits in the particular circumstances, so that the business can take an informed decision as to its next steps.

We have extensive experience in the instruction of forensic computer experts and the prosecution of claims and losses arising in the High Court, including injunction proceedings.

The Team has particular experience in advising the former employer or the new employer on team moves. As a poaching employer, it is essential that prior to taking any action, the business understands the possible claims that may arise and how those can be mitigated. For the potential target of team moves, we advise on protections that can be implemented to protect those business interests.

We are experts in this complex area of law with a depth of experience advising on all sides of the fence.

If the business is in a situation where employees are leaving in concert or short succession, or if the business is looking to poach a team, we are here to help. We will provide a clear analysis of the risks that arise in each particular circumstances, so that the business can take an informed decision as to next steps.

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Phone: +44 (0)20 7691 400

Email: enquiries@edwincoe.com

Experience:

Acting for a boutique insurance company in connection with matters arising from the wholesale theft of confidential company information by two former employees. The matter involved complex cross-border issues, including injunctive proceedings.

Advising a tech company on the scope and enforceability of restrictive covenants, non-disclosure agreements and protection of intellectual property. Preparing revised drafts of covenants.

Advising an investment property management company partnership on the expulsion of a partner who was diverting maturing business opportunities and the issue of LCIA Arbitration proceedings. The matter was vigorously defended and it involved complex property investment structures but was ultimately settled without the need for a full arbitration hearing and without any compensatory payments by our client.

Acting for industry specific headhunting company in respect of the wholesale theft of data by client relationship manager moving to a competitor. Obtained an order for delivery up from the High Court and not withstanding consistent denials by the ex-employee, all confidential information was returned to our client upon service of the High Court Order.

Acting for research company poaching a team of 8 from a competitor. Advising in respect of approach strategy and the provision of limited indemnities to the target staff for some specified potential claims arising from a team move.

Advising a boutique trading company on appropriate contractual terms to prevent team moves or to enhance legal claims available in the event of a team move.

Advising on-line retailer of terms of restrictions to cover non-compete and prohibition of dealing with key suppliers in relevant employee contracts of employment.

Acting for a firm of accountants in responding and resisting to allegations made by a new employee’s former employer that the new employee was in breach of their duties of confidentiality and post termination restraints, and that those breaches were induced by our client. Engaging with the former employer’s solicitors to dispute the allegations and resolving matters amicably without expensive litigation on a without prejudice basis.

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