Non-solicitation clause reasonable

In Safetynet Security Ltd v Coppage and another, the Mercantile Court enforced a six month post-termination

In Safetynet Security Ltd v Coppage and another, the Mercantile Court enforced a six month post-termination restrictive covenant preventing a director from poaching anyone who was a customer during his employment. The Court rejected an argument that the covenant should have been restricted only to customers with whom the director had had dealings over the last 12 months of his employment, as the covenant was appropriately drafted, given the director’s seniority and integral role within the organisation, and the size of the employer’s client base. In giving its judgment, the Court identified some guiding principles in evaluating the reasonableness of a non-solicitation restrictive covenant, which are a ‘must read’ for those wanting introduce or review covenants.

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26 December 2024

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