Lewison LJ considered the contractual duty of fidelity within an employment contract:
‘It is not disputed that an employee has an obligation of fidelity towards his employer. If the obligation is not expressed, it will invariably be implied.
Lewison LJ quoted Faccenda Chicken and summarised the position in the following way: ‘What is clear, however, is that in an analysis of the employee’s contractual obligations (including his job description) is an essential foundation for determining the scope of the obligation of fidelity.’
The then considered the difference between the contractual duty fidelity and the duties of a fiduciary: ‘As Elias J. pointed out in Fishel the hallmark of a fiduciary is a single-minded duty of loyalty. The duty of loyalty in that context has a precise meaning: ‘namely the duty to act in the interests of another As mentioned, this is not a feature of an employment relationship. In the employment context, the duty of loyalty, although given the same label ‘is one where each party must have regard to the interests of the other, but not that either must subjugate his interests to those of the other. ‘ Again it is, perhaps unfortunate, that conceptually different things have been given the same label. ‘
Judges:
Lewison, Pill, Lllyod LJJ
Citations:
[2012] EWCA Civ 841, [2012] IRLR 769
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Customer Systems Plc v Ranson and Others QBD 16-Dec-2011
. .
Leave to Appeal – Customer Systems Plc v Ranson CA 29-Mar-2012
Leave to appeal granted. . .
Cited – Wessex Dairies Limited v Smith CA 1935
A milk roundsman employed by a dairy who canvassed the dairy’s customers while in the employ of the dairy but to take effect after his employment had terminated.
Held: The question to be determined depended upon the term to be implied in the . .
Cited – Faccenda Chicken Ltd v Fowler CA 1986
Nature of Confidentiality in Information
The appellant plaintiff company had employed the defendant as sales manager. The contract of employment made no provision restricting use of confidential information. He left to set up in competition. The company now sought to prevent him using . .
Cited – Faccenda Chicken Ltd v Fowler CA 1986
Nature of Confidentiality in Information
The appellant plaintiff company had employed the defendant as sales manager. The contract of employment made no provision restricting use of confidential information. He left to set up in competition. The company now sought to prevent him using . .
Cited – Nottingham University v Fishel QBD 19-Jan-2000
When a university embryologist, the respondent, worked abroad he did not act in any breach of fiduciary duty. He remained under a specific duty to direct his fellow embryologists to work in the interests of the university and not in his own . .
Cited by:
Cited – Whitmar Publications Ltd v Gamage and Others ChD 4-Jul-2013
Whitmar claimed damages for breach of contract; an account of profits; damages for breach of fiduciary duty and/or for infringement of its Database Rights under the Copyright and Rights in Database Regulations 1997; and for a permanent injunction . .
Cited – Whitmar Publications Ltd v Gamage and Others ChD 4-Jul-2013
Whitmar claimed damages for breach of contract; an account of profits; damages for breach of fiduciary duty and/or for infringement of its Database Rights under the Copyright and Rights in Database Regulations 1997; and for a permanent injunction . .
Lists of cited by and citing cases may be incomplete.
Employment, Contract
Updated: 21 October 2022; Ref: scu.461771