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Lloyd's Law Reports


(1945) 79 Ll.L.Rep. 438


Before Mr. Justice Hallett.

Master and servant-Contract of service- Soliciting custom in breach of-Restraint of trade - Severance of covenants - Termination of contract - Implied term - Defendant employed by plaintiff company (insurance brokers) as manager of fire department under agreement providing:- 3. The [defendant] unless prevented by ill-health shall during the said term devote the whole of his time attention and abilities to the business of the company and shall obey the orders from time to time of the board of directors of the company and in all respects conform to and comply with the directions and regulations given and made by such board and shall well and faithfully serve the company and use his utmost endeavours to promote the interests thereof. 13. The [defendant] as a separate agreement hereby agrees that he will not at any time after the termination of this agreement (a) solicit the custom of or deal with any person or company who has during the three years preceding such determination been a client of the company, or (b) represent himself as being in any way connected with or interested in the business of the company.

-Agreement due to terminate in 1934- Defendant's service continued after expiry date-Resignation tendered on Aug. 28, 1943, to take effect on Sept. 30-Incorporation of company by defendant on Sept. 15, 1943, to carry on business of insurance brokers on his own account - Business solicited by defendant from plaintiffs' clients - Action brought by plaintiffs claiming damages and injunction - Whether terms of contract of service continued to operate-Consideration of Clause 13 - Whether covenants unreasonably wide and therefore unenforceable - Contemplation of parties when contract of service entered into- Protection of employers - Nature of insurance brokerage business - Success often dependant upon personal contact with client-Different classes of insurance usually placed through same broker - "Solicit the custom of" or "deal with" -Measure of damages-Damages at large -Scope of injunction.

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