Adam Solomon KC and Matthew Sheridan win for trader in covenant and springboard relief trial

Adam Solomon KC and Matthew Sheridan (instructed by Farrer & Co) have been successful in defending the High Court claims brought against Mr Soliman by his former employer in Dare International Ltd v Soliman.

Mr Soliman resigned to join a competitor of Dare, a business which carries on proprietary trading and liquidity provision in the energy derivatives markets. On resigning, Mr Soliman was told that he would have to work out his 12 month notice period. Shortly after resigning Mr Soliman went off sick until, several months later, Dare terminated his employment and issued a claim against him. Dare alleged (amongst other things) that he was not genuinely too sick to work and that his failure to work out his notice period was a breach of contract and his alleged fiduciary duties. Dare sought to enforce the 12 month post-termination non-compete covenant in Mr Soliman’s employment contract and, in addition, sought springboard relief for a further lengthy period (as well as seeking very substantial financial remedies).

The Court held that Mr Soliman was genuinely too sick to work during his notice period and concluded that, although the non-compete covenant was enforceable, injunctive relief should be refused because, by reason of Mr Soliman’s long period of sick absence, followed by the interim undertakings which he gave to the Court pending judgment after a speedy trial, by the time judgment was given Dare had already had the benefit of protection equivalent to that provided by the 12 month non-compete covenant.

A further notable aspect of the case is that the Court ordered measures to protect the confidentiality of Mr Soliman’s medical information, recognising that his privacy rights justified appropriate derogations from the principle of open justice.

A more detailed article will follow once it is known whether there will be any appeal.

A copy of the judgment is available on our website.