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Ask Buachaill Your Own Question
Buachaill, Barrister
Category: Law
Satisfied Customers: 10944
Experience:  Barrister 17 years experience
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MadamPlease advise us what we can do to protect

Customer Question

Dear Sir / Madam Please advise us what we can do to protect our business under following circumstances We had our son in low working for us from December 2001 – (13 to 14 years) – Krischen Raghavjee Some way along the line we promised KR our business will be his on our retirement 2012 KR became our Ex son in low 2014 I had heart problem – unable to work fully and KR managed business with one staff and my wife’s help Due to my heart condition and my wife’s arthritis we are unable to work full time Other family issue made working relation difficult between us and KR KR stopped communicating with on personal and business level Any business communication are done over text, through staff or friends and business associates We offer KR to take the business over on condition; see #1 & #2 and his reply #3 We had meeting with KR and his response was he wants to open his own business like us All signed contracts are kept in our office; We have contracts for all old employees; strangely KR contract is missing, we had last contract signed when we increased his wages to £350 per week during his divorce proceeding and child maintenance time What can we do to safeguard our business; how can we prevent KR from using all information he has gained of our business contracts with schools, offices, hospitals and domestic customers, our supplier, our costing formula’s to customers, our purchasing discounts from suppliers, and the rest Very kind regards ***** *****

Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.
1. Dear Navin, KR owes you a duty of loyalty as manager and possibly a fiduciary duty if he was a director of your business. In your question, you describe him as manager but if he was a director, then he owes you much more extensive duties including an obligation not to compete in the same business line. As thing stand, as manager, KR owes you a duty not to use confidential information obtained from you in any new business. This flows from his position as manager and his obligation of loyalty as he was both an employee and manager of your business. Accordingly, as things stand, you can take out an injunction restraining KR from using your business contracts, your suppliers, your costing formulas to customers, your purchasing discounts and all other confidential information he has obtained from his position as manager and employee of you. However, if KR was also a director, your injunction application can extend to preventing KR from competing using this confidential information in a similar business line for a period of time until that information is no longer useful. Generally six months. Accordingly, I would advise you to get yourself a solicitor to help you issue injunction proceedings against KR.
Expert:  Buachaill replied 2 years ago.
2 This restraint on KR competing could be longer - up to a year - if the information is still valuable at that stage. However, you should seek further advice upon having your solicitor read the relevant material and assess it commercial relevance to any new business.
Customer: replied 2 years ago.

Dear Expert

Do i have same defence even i cant find signed contract?

Expert:  Buachaill replied 2 years ago.
3.Yes, you still have the same cause of action (not defence) even if you cannot find a signed contract. This cause of action is not based upon contract but is based upon the relationship subsisting between themselves. So dont let the absence of a signed contract deter you.
Customer: replied 2 years ago.

Do i have to wait till KR lives Job and set up his business or can i warn him before he lives job

Expert:  Buachaill replied 2 years ago.
4. You can most certainly warn KR before he leaves the job. In fact, if you think he is thinking of leaving you can have a solicitor write a letter to him and set out the legal position and make clear that you will take action if he infringes the law.
Customer: replied 2 years ago.

Can I alarm possible competitor in same way to stop employing him?

Expert:  Buachaill replied 2 years ago.
5. I would advise against the course of action as this is liable to draw you into a legal action for defamation or malicious falsehood. You are better just to deal with your own business and sue if necessary. If you initiate legal action, this will be well known and it will be sufficient to alarm competitors. However, disparaging someone's reputation always reflects badly on the person making the allegations as people wonder why these allegations are being made, particularly where there has been a marriage breakup. So I would advise you simply to concentrate on your legal redress and leave KR's reputation to his own fate.