The High Court rules against MKM in battle over former employee.
STARK Building Materials (UK) has been successful in a High Court application to enforce a non-competition covenant against a former senior procurement executive who had joined competitor, MKM Building Supplies Limited.
The High Court heard that despite clear contractual obligations, both the former employee, Stephanie Higgs, and MKM resisted compliance with the non-compete restriction. The High Court firmly upheld STARK UK's position, and on 9 June delivered a strong judgment in its favour.
The Court found that the nine-month non-competition covenant was both necessary and enforceable to protect STARK UK's confidential information, including its highly sensitive "Net Net Prices", which were recognised as having clear value to a competitor.
Importantly, the Court also confirmed that the scope and duration of the covenant went no further than reasonably necessary to safeguard those interests.
The matter also involved a successful application for specific disclosure, following deficiencies in the former employee's disclosure.
Judge Adrian Bever commented that had Horsfield Menzies not been as "tenacious" in its approach, a substantial volume of key documentation would not have come to light.
The STARK UK team was led by Daniel Rubin, Rachel Rigg and Calum Maclean, instructed by Nim Cassidy, General Counsel at STARK UK. Paul Chaisty KC at Kings Chambers was instructed for the trial and Stefan Brochwicz-Lewinski represented STARK UK at the interim hearing.
Following the ruling Rubin said: "This decision reinforces the courts' willingness to robustly enforce well-drafted restrictive covenants and highlights the importance of decisive legal action in protecting commercially sensitive information."
MKM has been approached by BMN for comment.
