OAMPS Insurance Brokers Ltd v Hanna

OAMPS Insurance Brokers Ltd sought an injunction against its former employee, Hanna, to prevent him from breaching a covenant in restraint of trade, which was part of his employment contract. The clause in question was a cascading, ladder or step clause, which Hanna argued was void for uncertainty. The dispute came before the court for determination.

The court was required to determine whether the clause was void for uncertainty and whether it provided more than was reasonably required to protect the legitimate business interests of OAMPS Insurance Brokers Ltd. The court considered whether the clause was sufficiently clear and precise to be enforceable and whether the restriction was reasonable in scope and duration.

In reaching its decision, the court noted that the clause was not void for uncertainty as it contained sufficient clarity and precision. The court also held that the 12-month restriction was reasonably required to protect the legitimate business interests of OAMPS Insurance Brokers Ltd. The court found that the protection provided by the covenant was not more than was reasonably required to protect the covenantee’s legitimate business interest.

The court granted the injunction sought by OAMPS Insurance Brokers Ltd and restrained Hanna from breaching the covenant in restraint of trade. The court further ordered that Hanna pay OAMPS Insurance Brokers Ltd’s costs of the proceeding.