A breach of clause is found in a lower court, appealed to a higher court, but mediation solves the conflict

COMPETITON CLAUSE – A Head of Sales in a temp agency had a customer and competition clause as part of his contract, as well as an employee clause. When the Head of Sales left his employment, it became clear that he had worked for a competitor during the notice period and afterwards, even though he only officially became an employee of the competitor after the clause period ran out.

 

The Head of Sales had also contacted several of his previous employers’ customers and tried to get several of his previous employers’ staff to quit and join his new employer.

The previous employer brought the case before the court, and the Head of Sales was required to pay a total settlement of more than Dk750,000.  The Head of Sales appealed the case to a higher court, but shortly after the appeal was filed the two parties agreed to seek mediation.

With the mediator attorney present, the mediation took place over a half day in which the parties discussed the specific conflict, the general working conditions at the previous employer, and the parties’ behaviour and conditions during their co-operation.

During the mediation the Head of Sales admitted to having violated the clause.  It was also clear that the Head of Sales did not have the ability to pay the amount the lower court had ordered. Based on this information, both parties agreed to settle the case for a smaller amount and with a payment plan the Head of Sales could afford.

 

Mediationsinstituttet / Vesterbrogade 32 / DK-1620 København V / Tel. +45 5077 8427