Restrictive Covenants and Confidential Information – Execs “won’t share files with new bosses”

It was reported in the business pages of the Irish Independent today that the High Court has been told that three former senior executives with Goodbody stockbrokers will not disclose confidential information obtained by them in their old jobs to their new employer, investment managers Tilman Brewin Dolphin Limited. The paper reports that the three executives through their counsel, Mr. Tom Mallon, are prepared to give undertakings to the court until a further sitting on September 19th.Martin Hayden SC also gave undertakings to the court on behalf of Tilman Brewin Dolphin Limited that it would not seek to induce the three executives, its new employees to divulge any confidential information they may have or use it in any way.The paper reports that the Tilman had paid 700,000 “hello money” to the three senior executives to induce them to leave their employer in July. The three executives took up the post in August. A director of Goodbody stockbrokers told the court that the three executives had downloaded and taken with them information that was at the highest end of the scale in terms of confidentiality and commercial sensitivity. The court was told that Goodbody stockbrokers believed that the information procured would be used by all three former executives to the advantage of their new employer Tilman. The information is alleged to contain addresses of clients including their phone numbers. The allegations were denied by the three executives and Tilman.In separate parallel proceedings it was reported that Tilman is seeking to prohibit Goodbody from terminating a financial services agreement it has had with them since 2010. Goodbody threatened to end the business link on August 15 last.A decision will be given by Judge White on Monday next as to whether to grant Tilman prohibitive injunctions against Goodbody on the question of Goodbody withdrawing its business services with Tilman.Watch this space…..