Court rejects alleged breach of restraint of trade...

The Court of Appeal has reversed the High Court finding of a breach of a restraint of trade following the sale of a business that provided moveable wall and door systems.

The owners of the business sold it to some employees and agreed to a restraint not to engage in a similar business for three years.

After the sale the old owners purchased a new business that sold door and wall components.

The High Court said it was similar to the old business and issued an injunction to enforce the restraint.

The Court of Appeal decided that the sale of building components was not similar to the sale of complete wall and door systems and that the businesses were not in competition.  It removed the injunction and allowed the owners to operate the new business.

Restraints of trade clauses are a specialised area and if you have any issues it pays to get advice from a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley