The High Court has handed down its decision in ICAP Management Services Limited v Berry & BGC holding that the claimant was entitled to a permanent injunction to restrain a former employee, Dean Berry, from breaching a garden leave covenant in his employment contract by going to work for a competitor, BGC.
The litigation concerned the potential application of the TUPE regulations in the context of a significant corporate transaction – in this case the acquisition of ICAP Plc’s global broking business by Tullett Prebon Plc, now TP ICAP Plc, which completed at the end of 2016. Mr Berry and BGC argued that the transaction had resulted in a TUPE transfer, to which he had objected, freeing him from his garden leave obligations. The Court rejected that argument, holding that no TUPE transfer had taken place. Costs were awarded against both defendants.
The claimant was represented by Daniel Oudkerk QC and Edward Brown of Essex Court Chambers and Jane McCafferty of 11 KBW, instructed by Jonathan Arr of Macfarlanes.
