Are Most Restrictive Covenants Now In Jeopardy? Court Of Appeal Hands Down Judgment In Dwyer V Fredbar

• Published date: 04 July 2022
• Law Firm: Gatehouse Chambers
• Author: Mr Nigel Jones QC and Paul Strelitz

Following a line of recent Court of Appeal cases on restraint of trade (Quantum Actuarial LLP v Quantum Advisory Ltd [2021] EWCA Civ 227 and Credico Marketing Ltd v Lambert [2022] EWCA Civ 864) the Court of Appeal in this case, with the Chancellor giving the lead judgment, confirmed that inequality of bargaining power is a 'significant factor in determining reasonableness'. The Court of Appeal found that a risk of failure and the risk of financial difficulties were factors that a court is entitled to take into account when assessing the reasonableness of a restraint; indeed the court at first instance here was...