The defendant, a collector salesman entered the employment of a firm of credit drapers at a weekly wage of andpound;10. He brought with him the connection of customers acquired in previous employments. He entered into a restrictive covenant that he would not for a period of 5 years, following the termination of his service, canvass or solicit orders in the way of the business of a credit draper from anyone who had during the three years immediately preceding such termination, been a customer upon whom he, the servant, had called in the course of his duties for the firm.
Held: The covenant was unreasonably restrictive having regard to the firm’s business and the salesman’s employment, to the duration of the restriction and to the circumstances that a large proportion of the customers covered by the covenant were persons who had formed the salesman’s connection before he entered the firm’s employment.
Morris LJ said: ‘I do not consider that restriction would necessarily be held to bunreasonable merely because it could be shown possibly to extend to one or two cases beyond the range of contemplated protection.’
 3 All ER 814,  1 WLR 9
Distinguished – Gilford Motor Co Ltd v Horne CA 1933
The defendant was the plaintiff’s former managing director. He was bound by a restrictive covenant after he left them. To avoid the covenant, he formed a company and sought to transact his business through it. At first instance, Farwell J had found . .
Cited – Associated Foreign Exchange Ltd v International Foreign Exchange (UK) Ltd and Another ChD 26-May-2010
The claimant sought interim injunctions to enforce a restrictive covenant against solicitation of customers in a former employee’s contract. The employee, a FOREX dealer, had been placed on garden leave for three months and then his contract . .
Lists of cited by and citing cases may be incomplete.
Updated: 06 May 2022; Ref: scu.416454