The appellants, former commercial insurance salespeople for the respondent, resigned and joined a competitor, subsequently soliciting clients from the respondent.
The respondent successfully sued for breach of a restrictive covenant at trial.
On appeal, the Court of Appeal found the clause was an unenforceable non-competition clause rather than a non-solicitation clause, as it contained no geographical limit and broadly prohibited conducting business.
The appeal was allowed and the trial judgment was set aside.
