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Ex employee breaches restrictive covenant and poaches valuable clients

kellandsThe challenge

Kellands (Bristol) Limited, a financial advisor, came to Gregg Latchams with a case in which a consultant left the business taking clients and repeat commission payments with them.

The solution

Emma Ironside from our Dispute Resolution team issued legal proceedings against the consultant to stop him taking any further clients and to account to the client for the money he gained in taking those clients.

The solution included looking at the wider impact this was having on the client, as they were losing money but also wanted to send a clear message to the rest of their consultants to stop this happening again.

The process

The team had to issue injunction proceedings and obtain an accountant’s report to calculate the amount of money the consultant received from the client’s clientele.

The process began by writing to the consultant but when he would not stop breaching the restrictive covenants contained in his contract of employment Gregg Latchams issued court proceedings against him and his new employers.

Gregg Latchams’ made tactical offers to make sure the client was in the best possible position when it came to reclaiming his costs. The reasonable fees meant the client was able to recover almost all of them from the other side.

The result

The client was pleased to recover money from the consultant and stop him and the poaching of more clients happening again.

“Emma has been very good to work with on some very stressful and complex issues. She has always been attentive and efficient in her responses and has ensured I have had a good understanding of legal process throughout.”

– Myles Jacobs, Managing Director of Kellands

 

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