"As a partner in the BRS business and as part of the projects and transactions referred to above, Mr Carmichael had access to the most confidential information and trade secrets of PwC an its clients. This includes pricing structure, strategies and significant information about sensitive and high-value projects with such information being 'live' and highly confidential today. As an example, the R&R team runs a watchlist of stressed and distressed situations, and of restructurings across the market that are very specific to PwC. All market intelligence from the PwC partners and staff is stored into a secure IT library called the Opportunities Unit. Mr Carmichael had access to this information on a daily basis and up until the period on which he went on garden leave, and no doubt retains some of it in his mind today. I understand that many of the names and cases on the watchlist remain live and current for the reason that they would be developed by the team over a number of months and years. As I have stated above, I understand that some of the projects and transactions on which Mr Carmichael performed material work are also still ongoing. For example, Mr Carmichael worked on phase 1 of a project for an energy company which commenced in 2016, and the project is currently in phase 3. Mr Carmichael also worked on phase 1 and the first part of the second phase of a project for a steel product manufacturer. The information obtained during work on these projects is highly confidential and commercially sensitive, and would be of incalculable value to a competitor such as FTI as it seeks to develop and strengthen its capabilities and business in this area."
"As to clause 13.10 which prevents a retiring member from joining a competitor for a period of six months after his termination date, I believe that this is similarly plainly reasonable in order to protect PwC's legitimate business interests as a member of PwC such as Mr Carmichael will inevitably obtain detailed knowledge of highly confidential and commercial matters in the course of his duties. Although clause 13 contains an expressed confidentiality clause, these types of clauses are broad and difficult to police in practice. The only effective way to ensure that a retiring member does not unfairly compete by making use of such information is to have a short post-termination non-competition covenant in clause 13.10."
"All the provisions of the members' agreement will continue to apply to you. Clause 12 sets out the restrictions and obligations relating to partners on required leave, and all these restrictions and obligations will apply to you. In particular, save as provided for in this letter, you are prohibited from having any communication with any clients of the LLP or any members or employees and/or receive, have access to or copy any confidential information such as agreed otherwise in writing with Marissa Thomas. Please note that certain activities on social media, such as updating your LinkedIn profile by stating that you will be leaving, on garden leave or have left, or by providing information about a new role with a competitor, will amount to solicitation and will be considered a breach of clause 12 of the members' agreement. A copy of clause 12 and a summary of the information which applies to you for the period of your garden leave is enclosed."
"Consequence of ceasing to be a partner. I would take this opportunity to remind you that one of the clauses of the members' agreement, clause 13.10, prohibits you from joining a competitor of PwC LLP as a member or partner for a period of six months from the date of your retirement from the LLP. Deciding whether a business is in competition with the LLP is at the discretion of the management board, but this would clearly include FTI Consulting. Clause 13 of the members' agreement sets out the consequences of ceasing to be a partner. A copy is enclosed for your information together with clause 15 to which clause 13 refers. I also enclose the guidance notes on the clause 13 restrictive covenants for your reference. Please note that as the membership of the LLP is inter-conditional with being a partner in the partnership, the equivalent clauses of the partnership agreement, clauses 11, 12 and 13.10(a) will also apply. We would also like to refer you to clause 13.17 of the members' agreement, in the event that we have become aware of behaviour amounting to specified conduct as defined in the members' agreement at any stage prior to or after your retirement we will have no hesitation in invoking the full range of sanctions contained within that clause."
"Whilst all of the post-termination restrictions set out in the two agreements will apply to you, I wish to bring two key clauses of PwC LLP's members' agreement to your attention. 1. Clause 13.10 prohibits you from joining a competitor of PwC LLP or any PwC network firm as a member or a partner for a period of six months from the retirement date. Deciding whether a business is in competition with PwC LLP or any PwC network is at the discretion of the management board. But for the avoidance of doubt, this will include FTI Consulting. Consequently, this clause will prohibit you from joining FTI Consulting until24 July 2019 at the earliest… In addition, in the event that PwC becomes aware that you do not intend to abide by your post-termination restrictions including the above two restrictions, PwC reserves its legal rights fully to take any such action as it deems necessary including but not limited to seeking injunctive relief against you personally to the full extent permissible under law in order to protect its legitimate business interests…"
"Our client is prepared to provide the requested undertakings on the following conditions: 1. that such undertakings will be provided until the end of the hearing of your application to the Commercial Court for an interim injunction; 2. your application must be on notice and issued in the Commercial Court by no later than 4 pm this Friday,1 March 2019 on the basis that it is listed urgently for a return date hearing; 3. the LLP will provide a cross-undertaking in damages to our client in relation to the significant losses he will incur in relation to any further period of restraint supported by the LLP's most recent filed accounts or appropriate management accounts; 4. your acceptance that the offer of such undertakings is entirely without prejudice to our client's position that the restrictions are unenforceable and that you will not rely on these undertakings in support of your claim to enforce them on an interim or final basis…"
"A retiring member shall not for a period of six months from his termination date become a member or partner in or provide services to or on behalf of any business which is or is about to be in the reasonable opinion of the management board in competition with the business of the LLP or any related firm or overseas firm."
"The true view at the present time I think, is this: The public have an interest in every person’s carrying on his trade freely: so has the individual. All interference with individual liberty of action in trading, and all restraints of trade of themselves, if there is nothing more, are contrary to public policy, and therefore void. That is the general rule. But there are exceptions: restraints of trade and interference with individual liberty of action may be justified by the special circumstances of a particular case. It is a sufficient justification, and indeed it is the only justification, if the restriction is reasonable – reasonable, that is, in reference to the interests of the parties concerned and reasonable in reference to the interests of the public, so framed and so guarded as to afford adequate protection to the party in whose favour it is imposed, while at the same time it is in no way injurious to the public. That, I think, is the fair result of all the authorities."
'I think it better to ascertain what were the legitimate interests of the appellants which they were entitled to protect and then to see whether these restraints were more than adequate for that purpose.'
"… it is necessary to recall that the partners in the respondent firm as constituted from time to time are the owners of the firm's whole assets including its most valuable asset, goodwill. The appellant had owned a share of the assets while he was a partner, but he transferred his share to the continuing partners when he ceased to be a partner. Thereafter, the continuing partners owned the whole of the assets… The question is whether it is reasonable as between the parties for the respondent to obtain protection against appropriation by the appellant of any part of the goodwill, notwithstanding the 'departmentalisation' of the practice. Their Lordships considered that it was reasonable provided… that the protection did not extend beyond the respondent's practice… On the question, the mutuality of the contract is the most important consideration. The contract applied equally to all of the partners. None of them could tell whether he might find himself in a position of being a retiring partner subject to the restriction in clause 28 or of a continuing partner with an interest to enforce the restriction. It was at least as favourable to the appellant as to the more senior partners. By clause 22 of the agreement, every partner is obliged to retire on 31 December immediately following his 60th birthday. The probability, therefore, was rather that the restriction would apply first against the more senior partners than the more junior ones. Moreover, if any(?) of the senior partners at different times and on a variety of different matters. Moreover, it might well have been able to take any more of the firm's clients with him than could the appellant…"
"Experience has shown that it is not satisfactory to have simply a covenant against disclosing confidential information. The reason is because it is so difficult to draw the line between information which is confidential and information which is not; and it is very difficult to prove a breach when the information is of such a character that a servant carry it away in his head. The difficulties are such that the only practicable solution is to take a covenant from the servant by which he is not to go to work for a rival in trade. Such a covenant may well be held to be reasonable if limited to a short period. This appears in the judgment of Cross J in Printers and Finishers v Holloway[1965] 1 WLR 1 at 6…"
"…PwC's insistence upon enforcing its restrictive covenants and in particular its non-competition obligation have deprived me of the ability to earn a living, and I have been forced to take out an overdraft and re-mortgage my family home as a consequence. My inability to work since25 January 2019 has resulted in a permanent loss of income in the region of£25,000 at the date of this statement, such loss increasing by£550 a day for each day I am prevented from working. These figures ignore related liquidity issues and other costs I am facing. If I was permitted to join FTI, this would help considerably to alleviate these financial concerns, and almost as importantly would allow me to re-join the working world after almost a year either on garden leave or being restrained. There is much that I could do in terms of planning, preparation and strategy development, induction and professional development, and knowing that I am being held back from even these tasks is challenging at a personal level."