Practical Law Commercial have featured Credico Marketing Ltd v Lambert [2021] EWHC 1504 (QB) in their round-up of cases to look out for in 2022. John Mehrzad KC and Matthew Sheridan will appear in this forthcoming Court of Appeal case in March on the enforceability of restrictive covenants in a commercial contract.
Practical Law commented:
Justifying a restrictive covenant
In 2021, the High Court found a marketer in breach of a 6-month restriction on its activities, after the end of its contract with the claimant’s predecessor, a marketing agency. (The judge also found there had been an informal novation of this contract.) The Court of Appeal is due to hear an appeal against that decision on 15 or 16 March 2022.
The appeal challenges the judge’s finding that the restrictions on competition were justified, not to protect the agency’s confidential information or client relationships but to protect its investment of money and effort (in providing advice, coaching, training, back-office support, work and clients) to help the restricted party perform the contract (paragraphs 263-273).
The judge had also held that the restraint must have been valid or void at contract formation. The novation could not revive or invalidate it, even if the incoming party’s interests differed from its predecessor’s (paragraph 262). But, since nothing in the decision turned on this point, the Court of Appeal may say little about this aspect of the appeal.
Case: Credico Marketing Limited v Lambert [2021] EWHC 1504 (QB).
Please click here to view the full list of upcoming cases.
