Elsevier Ltd v Munro
2014
QUEEN’S BENCH DIVISION
United Kingdom
CORAM
- MR JUSTICE WARBY
Areas of Law
- Contract Law
- Employment Law
2014
QUEEN’S BENCH DIVISION
United Kingdom
CORAM
AI Generated Summary
The case involved a dispute between a company within the Reed Elsevier group and its former CFO, who attempted to join Cengage Learning Inc. after resigning. The court ruled that the Defendant was not constructively dismissed and was thus still bound by his employment contract with the 12-month notice period. The court granted an injunction restricting the Defendant from working for a competitor until the end of his notice period.
Judgment
Mr Justice Warby:
Introduction
The Claimant in this action is a company within Reed Elsevier, an Anglo-Dutch publishing and information group. The Claimant company forms part of the Elsevier Division of Reed Elsevier. The Elsevier Division is a collection of businesses operating internationally in over 20 countries generating very substantial revenues from the provision of books, journals and information services to a range of sectors including health practitioners, scientists, teachers, students, and technology professionals. The Defendant is a Chartered Accountant. After graduating in 1986 he worked for Price Waterhouse and qualified in 1990. He has worked for companies within Reed Elsevier since 1995, rising to a senior level. Since 2009 he has been employed by the Claimant, working most recently as Chief Financial Officer (CFO) of a sub-division of the Elsevier Division known as Elsevier Research, a post which he took up on 1 February 2014.
On 11 April 2014 the Defendant gave the Claimant notice of resignation. He had received a job offer to join Cengage Learning Inc (“Cengage”) as its CFO. The Defendant proposed to take up that offer after a period of transitional arrangements which he suggested, ending on 31 May 2014. The Claimant objected to that proposal, relying on the requirement of the Defendant’s contract of employment that he give them 12 months’ notice. After further exchanges, the Defendant ceased working for Elsevier Research at the end of May 2014, claiming that his contract was at an end.
On 4 June 2014 the Claimant issued these proceedings, relying on the 12 month notice clause and contractual duties owed by the Defendant during the period of his employment. The principal remedy sought is injunctions to restrain the Claimant until 10 April 2015 from commencing employment with or providing services to Cengage or any other competitor and from breaching his duties of good faith, fidelity, trust and confidence. The Defendant resists the claim, asserting that he is entitled to move to Cengage as he was constructively dismissed by the Claimant, and is thus free of the contractual restraints on which it relies. Alternatively, the Defendant argues that there should be no injunction, with the Claimant left to a remedy in damages, or only a limited injunction.
On 11 June 2014 directions were given for an expedited trial and the Defendant gave undertakings to the Court, which included an undertaking not until trial or further Order t