Takeaways On Noncompete Pacts From UK Top Court Ruling

By David Fisher and Pooja Dasgupta (September 3, 2021, 4:25 PM EDT) -- A nondisclosure agreement drafted by an English consumer law firm was held recently to be enforceable and prevented another firm from bringing a rival group litigation claim against Volkswagen AG over emissions.

In a July 23 ruling in Harcus Sinclair LLP v. Your Lawyers Ltd., the U.K. Supreme Court held that a six-year noncompetition clause in a commercial nondisclosure agreement between these two law firms was not an unlawful restraint of trade and was enforceable as a contractual term.

In this article, we revisit the key principles of the restraint of trade doctrine and notable legal developments in this context. We also consider the implications of the Supreme Court's ruling on the...

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