Affinity Financial Awareness Ltd & Anor v Ferguson & Ors

Facts

The claimants, Affinity Financial Awareness Limited and Affinity Connect Limited, are wholly owned subsidiaries of the Farleigh Group Ltd, which offers two services to public sector employees: pre-retirement educational seminars delivered through Affinity Connect, and investment advice provided through Affinity. That advice had been delivered by self-employed advisers working under consultancy agreements. On 11 May 2016 Farleigh was purchased by Wealth at Work Midco Ltd, part of the Wealth at Work Group, which delivered advice through employees and decided that Farleigh should do the same. Contracts of employment were offered to some advisers but not others; the defendants either were not offered a contract or, in the first defendant's case, declined one, and their consultancy agreements were terminated with effect from 31 July 2016. Each agreement contained twelve-month non-solicitation, non-dealing and non-poaching covenants, the definition of "Customer" differing between the 2007 and 2009 versions. By a claim issued on 31 August 2016 the claimants sought damages and injunctive relief for alleged breaches of those covenants, and on 1 September 2016, before Particulars of Claim, applied for interim relief. The parties agreed on a speedy trial and that undertakings would be given, but five points remained in dispute for determination at the hearing on 9 September 2016.