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Restrictive covenants: Joint venturer can enforce staff-poaching restraints

This report relates to 1 case(s)

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    Dawnay, Day & Co Ltd and another v De Braconier D'alphen and others [1997] IRLR 442 CA (0 other reports)

Restrictive covenants may be enforced so long as the covenantee has a legitimate interest to protect and the covenant is no wider than is necessary to protect that interest, holds the Court of Appeal in Dawnay, Day & Co Ltd v de Braconier d'Alphen and others [1997] IRLR 442. There is no rigid or exclusive restriction to the established categories of vendor/purchaser of a business and master/servant cases. Accordingly, the Court holds that the plaintiff bank in this case had a sufficient interest to enforce anti-competition and non-solicitation covenants against the defendant Eurobond brokers with whom it had set up a joint venture.