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G. B. OLLIVANT, Ltd. v. N. KARABETSOS

1936

DIVISIONAL COURT (COLONIAL)

GHANA

CORAM

  • Petrides, C.J

Areas of Law

  • Contract Law
  • Employment Law

AI Generated Summary

Petrides, C.J. addressed the enforceability of a post-employment non-compete agreed in England between an African merchant-shipping company and its assistant, who served at Accra and later as agent in Cape Coast. After resigning, the assistant opened a nearby business in Accra; the company sought an injunction and a31,000 liquidated damages under clause 8 for breach of clause 6, then abandoned the injunction and pursued damages only. Applying English restraint-of-trade principles, the court emphasized that employer-employee non-competes are enforceable only to protect customer connections or trade secrets, not to prevent competition, referencing Herbert Morris v. Saxelby and contrasting Millers v. Steedman. Evidence from supervising agent Mr. Leventis showed no enticed customers or secret processes, and the assistant’s role did not justify a broad Gold Coast-wide radius. Clause 6 was held unreasonable and unenforceable, and clause 8 damages were unavailable. The action was dismissed with costs.

JUDGMENT