Read the full judgment text of HCA 002422/2007 on BabelCite. This High Court CFI judgment was delivered on 28 November 2007 before Deputy High Court Judge Gill.
Civil practice – interlocutory injunction – employment contract – restrictive covenant – non-compete clause – choice of law – express choice of English law – proper law of contract – Hong Kong Employment Ordinance (Cap 57) ss 4, 7, 70 – whether EO is an overriding statute – UK Employment Rights Act 1996 s 204(1) compared – secondment of UK-based employee to Hong Kong subsidiary – buy-out of notice period under s 7(2) – senior bank employee (head of Investment Banking, Asia-Pacific) – resignation to join competitor Citigroup – garden leave – protection of confidential information and trade secrets – legitimate business interests – reasonableness of duration (six months less garden leave) and territorial scope (Asia-Pacific) – TFS Derivatives v Morgan three-stage test – American Cyanamid principles – Lansing Linde v Kerr – real prospect injunction period will expire before trial – particular regard to prospects of success – serious question to be tried with high prospects of success – balance of convenience – damages not an adequate remedy for plaintiff – undertaking in damages adequate for defendant – injunctions granted – costs of plaintiffs in the cause (nisi).
Legal issues: Applicability of Hong Kong Employment Ordinance to a contract governed by English law · Enforceability of the six-month post-termination non-compete clause · Whether interim injunctions should be granted under the American Cyanamid test
Outcome: Interim injunctions granted in favour of the plaintiffs restraining the defendant from working for Citigroup and from competing in the Asia-Pacific region.
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