£50,000 bill for disloyal employee

Posted: 18th December 2014

SecretsA senior company employee who violated the duty of good faith and fidelity he owed his bosses when he upped sticks and set up a rival recycling business paid a heavy price for his disloyalty when the High Court ordered him to pay more than £50,000 in damages.

Keith Sendall, who managed one of the Reuse Collections Ltd's depots, successfully argued that he did not owe a fiduciary duty to his employers and that restrictive covenants in his contract were unenforceable. However, the Court nevertheless found that he had breached his contract by ‘directly and intimately’ involving himself in setting up a competing business, May Glass Recycling Ltd.

His new employers had ‘conspired’ with him to breach his contract and both were held liable to pay Reuse damages of £51,822. Sendall was also left facing heavy legal costs bills after his counterclaim that he had been wrongfully dismissed by the company was rejected.