A Court of Appeal decision provides a stark reminder that restrictive covenants must be carefully thought through and worded, with rigorous consideration given to the underlying intention and drafting of the clause. The Court of Appeal overturned the High Court’s decision to read words into a non-compete covenant and held that the only intepretation available was the one that rendered the covenant useless.
In its view, the employer had simply not thought through the extent to which its chosen words would in fact provide adequate protection. An employer cannot rely on a court to re-write a poorly drafted covenant and remedy its bad bargain.
This article is © Endeavour Partnership LLP 2014 and may not be reproduced without our express permission.
This article is a general summary and should not be relied upon in the place of seeking professional advice in respect of any specific situation.
No responsibility can be accepted for any actions based on the information in this article.
Share this post: