Confidential Information, Restrictive Covenants, Fiduciary Duties & Team Move Disputes

Senior Executives are likely to have had access to confidential information and to have post termination restraints in their contract of employment.

It is essential that prior to any move, the client understands the effect of those provisional and any fiduciary duties that arise, as well as the enforceability of any restrictions if they plan to move to a competing business, either alone or with colleagues.

We are experts in this complex area of law and routinely advise clients on matters relating to confidential information, fiduciary duties and the scope and enforceability of post termination restraints to enable them to navigate the potential minefields in this area. In turn, this enables clients to plan their departure in an orderly way to enable them to go on to the next stage of their career unencumbered, whilst limiting the risk of costly litigation.

If an ex-employer is seeking to enforce post-termination restraints or makes allegations of a breach of fiduciary duties or a misuse of confidential information, the team will provide a clear analysis of the risks that arise in any particular circumstances and potential outcomes, so that our client can take an informed decision as to their next steps. We adopt a pragmatic approach designed to find an appropriate compromise and minimise exposure to substantial litigation costs.

Overview

Senior Executives

Businesses

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Experience:

Acting for 3 members of a property investment team who left their employer to join a competitor, to include the defence and settlement of proceedings issued by their former employer. Our clients were able to continue working and reached settlement terms substantially below sums sought by former employer.

Advising a senior executive in advertising business on issues arising, risks and strategy on proposed move with colleagues from his existing employer to a competitor. In the event, the client decided not to move as previously planned and revised his departure strategy to limit personal risk to himself of defending litigation.

Acting for one of a group of Defendants (all of whom were Lloyd’s insurance brokers) in a three-week High Court trial in respect of an alleged team move and other allegations of breach of contract. All claims were dismissed against our client.

Acting for a senior business development director in family office facing allegations of the misuse of confidential information which included demands for disclosure of communications by WhatsApp and a private email account. Safeguarded our client’s private communications and secured substantial settlement.

Advising a departing employee in the real estate business who was leaving to set up in competition with their employer on the ‘dos and don’ts’ under the terms of their confidentiality obligations and their post termination restrictions with their former employer to include what preparatory steps could and could not be taken to compete to safeguard against aggressive litigation and diversion of funds and time from new enterprise. Ultimately the client undertook preparatory steps and set up in competition swiftly when possible to do so, without any resultant assertion of a breach of contractual obligations by the former employer.

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