Restrictive covenants that held when a sales team left

Three salespeople left for a competitor and started contacting clients. Signed undertakings protected every account without going to court.

Three colleagues discussing terms around a low table

Result

£180k

of yearly client revenue protected

Client

Tessmere

B2B software, 60 people

Outcome

Every client kept, no court case

Fee

£4,200 fixed fee

Agreed before any work started

The situation

Three of Tessmere’s sales team resigned on the same day to join a competitor. Within a week, two of the company’s largest clients had been contacted from a personal email address.

What I did

  • Checked the restrictive covenants in each contract and confirmed which ones a court was likely to enforce.
  • Gathered the evidence of client contact and helped the company secure its data.
  • Sent a firm letter to the departing employees and their new employer setting out the breaches and the undertakings required.
  • Negotiated signed undertakings without issuing a claim.

The outcome

All three employees gave undertakings within five weeks. Tessmere kept every client account, worth about £180,000 a year, and has since updated the contracts for its whole sales team.

When three of our sales team resigned on the same day, Owen already knew our contracts better than we did. We kept every client.

Priya Nair

Chief Operating Officer, Tessmere

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