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Agency wins case against former employee's rival business

Posted: 8th January 2013   In: Corporate Commercial

A model agency has won its case against a former employee who defrauded it of £21,000 and disclosed some of its confidential information while helping to set up a rival business.

The employee had worked for the agency as a booker responsible for hiring models. His contract of employment restrained him from engaging in competition with the agency during his employment.

He was also prevented from soliciting the agency’s employees or models for 12 months after terminating his contract, and from disclosing any of the agency’s confidential information.

Following the employee’s resignation, the agency discovered that he had been emailing confidential information about its customers to his new business partner. He had also fraudulently obtained £21,000 in expenses from the agency by inflating travel claims.

The court held that the restrictions the agency had placed on the employee during his employment and the 12-month non-solicitation clause were both reasonable and enforceable. There was substantial evidence that the employee had been in breach of his contract obligations for approximately nine months before his resignation.

He had misused the agency’s confidential information and tried to solicit its customers.

The agency was granted injunctions preventing the employee and his new company from soliciting its staff and customers for a period of 12 months. He was also ordered to repay the £21,000 he had obtained through inflated expenses claims.

Please contact Jon Alvarez if you would like more information about the issues raised in this article or any matter relating to the protection of your business interests.