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RESTRICTIVE COVENANTS: One step beyond?

31 October 2014  

Gary Freer examines a recent case in which the court awarded gain-based damages for breach of employees’ restrictive covenants

In claims for damages for breach of restrictive covenants in employment contracts, claimants routinely plead, as an alternative case, for ‘gain-based’, ‘release payment’ or ‘Wrotham Park’ damages. One Step (Support) Ltd v Morris-Gardner [2014] is a recent and interesting example of a case in which such damages were ordered to be paid – indeed, the trial judge, Phillips J, described it as ‘a prime example of a case in which they should be awarded’.

Additional Info

  • Case(s) Referenced:

    Attorney-General v Blake [2000] UKHL45

    BGC Capital Markets (Switzerland) 3LLC v Rees & ors [2011] EWHC 2009 (QB)

    Experience Hendrix LLC v PPX Enterprises Inc [2003] EWCA Civ 323

    One Step (Support) Ltd v Morris-Gardner [2014] EWHC 2213 (QB)

    Van der Garde v Force India Formula One Team Ltd [2014] EWHC 2373 (QB)

    Wrotham Park Estate Co Ltd v Parkside Homes Ltd [1974] 1 WLR 798

    WWF – World Wide Fund for Nature v World Wrestling Federation Entertainment Inc [2007] EWCA Civ 286