Monday, November 11, 2013

The company is a sham


Gilford Motor Co. Ltd. V. Horne

Horne, a former employee of a company, was subject to a covenant not to solicit its customers. He formed a company to carry on a business which, if he had done so personally, would have been a breach of the covenant.
An injunction was granted both against him and the company to restrain them from carrying on the business.
The company was described in this judgment as “a device, a stratagem”, and as “a mere cloak or sham for the purpose of enabling the defendant to commit a breach of his covenant against solicitation”.

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