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Old 11th July 2007, 08:50 AM
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Default Case of the week: post-termination restraint clauses

Beckett Investment Management Group Ltd and others v Hall and others (Court of Appeal) When is a post-termination restraint clause enforceable? Is a 12-month restraint too long? In Beckett Investment Management Group Ltd and others v Hall and others, the Court of Appeal gave some useful guidance in the context of the financial services sector. Facts Beckett Investment Management Group (BIMG) was a holding company. Its subsidiary, Beckett Financial Services (BFS), provided financial advice. Two senior employees, Hall and Yadev, worked at the office of BFS as financial advisers. Both resigned around the same time to start up their own competing business. Both of their contracts of employment had been made between the employees and BIMG (the holding company). The contracts contained a 'non-dealing' clause to restrain the employees from providing "advice of a type provided by the company in the ordinary course of its business". The contracts defined "the company" as BIMG...


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