Chris Quinn successfully defends £6 million claim; recovers indemnity costs

14.02.20112

Judgment has now been handed down by Cox J following last year’s two-month trial in Towry EJ Limited v Barry Bennett and Others. The claim was brought by Towry following its controversial acquisition of Edward Jones’ UK operation and subsequent attempt to ‘encourage’ the move of its investors’ holdings into its own product. The acquisition resulted in the departure of a number of Edward Jones’ most successful financial advisers and, in turn, their clients. Towry had responded to this by commencing a high-profile claim alleging breach of a non-solicitation provision contained in the Edward Jones’ contracts with the advisers and conspiracy.

Chris Quinn was instructed to represent all 8 Defendants following the successful defence of the multi-million claim in Lonmar v West and Others.

In the course of a 350 page judgment, Cox J dismissed all claims brought by Towry. The judgment highlights the very real difficulties that a claimant may face at trial in relying upon non-solicitation covenants and also fires what may (if unheeded) prove to be a very painful shot across the bows of claimants who bring bring, but fail to land, claims of unlawful means conspiracy.

Perhaps most significantly of all, given the ringing endorsement that Cox J gave for the behaviour of Raymond James itself, the case provides invaluable guidance to how competitors can and should act when presented with a recruitment possibility in the face of restrictive covenants.

There was a considerable sting in the tail for Towry when Cox J accepted Chris' application for costs to be assessed in the indemnity basis due to what was decided to be Towry's unreasonable conduct in failing to withdraw its allegation of unlawful means conspiracy.

Lonmar (in which Martin Palmer and Damian Brown of Littleton co-defended with Chris) and Towry stand out in recent years as being possibly the two highest profile trials of this nature in which the defendants have succeeded.

Littleton is presently preparing a seminar on the lessons to be learned from the Towry case. There are many such lessons- including the perils of loosely worded witness statements leading to Rule 33.4 (hearsay) applications being granted and the proper disclosure of legal advice taken in such cases.

If your litigation team would be interested in the same then please contact Chris’ clerk Jason Drakeford to discuss.

The case is now reported in The Lawyer: http://www.thelawyer.com/faegre-seals-victory-for-raymond-james-in-towry-employment-case/1011415.article