Team moves – Court of Appeal

It was accepted that there was a serious issue to be tried as to whether one of the senior managers of the Appellant insurance brokers was in breach of fiduciary and contractual duties when he orchestrated the move of a team from a particular department. The Judge however took the view that it was pointless granting an interim injunction because so many of the senior management team and key revenue producers had already left. However the Court of Appeal did uphold the Appellant’s claim for a springboard injunction temporarily restraining the Respondents from trying to recruit any more of their employees or accepting them into employment, on the basis that the company would want to try and train staff to build up their business again.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.