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News Details


Tullett Prebon v BGC judgment handed down
18.03.2010

Judgment in Tullett Prebon v BGC [2010] EWHC 484

 

The judgment of Jack J in this much-publicised inter-dealer broker team move case was handed down on 18.03.10. Littleton Chambers’ barristers were representing all three teams of Defendants: Jonathan Cohen was junior Counsel for BGC, Stuart Ritchie and Chris Newman acted for Tony Verrier and Selwyn Bloch QC and Jeremy Lewis acted for the broker Defendants.

 

The case provides important clarification of the law as applied to team moves, and in particular the positions of the team leader and the individual who is the recruiter from the new employer.

 

The judgment is important for its treatment of the following legal issues: The approach to termination of an employment contract in reliance on a repudiatory breach of contract where brokers do not leave in response to that breach, distinguishing Meikle in the Court of Appeal; the fact that one party is in breach of trust and confidence does not preclude him from accepting the other’s breach of the same term; in this respect the Court doubts RDF Media v Clements; the correct approach to the award of injunctive relief where both garden leave and covenants are relied upon; the exercise of judicial discretion regarding the period of injunctive relief where long fixed term contracts are in place; the availability of quia timet injunctive relief to prevent an employer from recruiting from a competitor where unlawful means are threatened.

 

Generally the judgment is notable for the approach taken to contractual issues which is to follow the approach adopted in commercial contracts.

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