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Court finds employees don’t have to disclose intention to compete

09 June 2017 #Other

In MPT Ltd v Peel and others, the High Court was asked to grant an interim injunction against two senior employees of MPT who planned to run a competing business after they left MPT and their restrictive covenants had expired.

MPT questioned the pair on their intentions but they did not disclose their plans. MPT argued that the employees had breached their duty to answer questions truthfully. The Judge, however, did not agree that the defendants were under a contractual duty to disclose their intentions.

This case highlights the freedom that employees have in this regard, however, its worth bearing in mind that the position may have been different if the employees had been directors and owed fiduciary duties to MPT.

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Louise Merrell

Louise Merrell
Senior Solicitor

E: lmerrell@clarkslegal.com
T: 020 7539 8082
M: 0779 900 7325