california employment law termination

The case of Helmet Integrated Systems Ltd v Tunnard and Others [2006], the resolution of a dispute as to what actions could be carried out under the conditions of employment. The applicant (" HISL ") manufactures and sells equipment. 1993, it has a new helmet design, which successfully marketed primarily on the London Fire Brigade. The defendant was a senior representative of the plaintiff.

While the plaintiff in employment, the defendant had the idea for a new modular helmet. He believed that his employer is not interested in a new helmet, especially on the European market, where he was when it came to a gap for such a product to gain a foothold.

Between September 2001 and 28 February 2002 the defendant a series of steps to his idea. He has some funds and arranged for product designers, the initial drawings of his concept. He in his announcement of resignation on the 1st February 2002 and worked until the end of the notice period, until he at the 28th February.

The defendant Incorporated Modular Helmet Systems Ltd ( "MHSL") two months after his departure from the applicant. Shortly thereafter, a rival company HISL, Lion Apparel Inc. ( "lion"), in a majority stake in MHSL. The applicant has indicated that that the defendant acted willfully against his obligation to loyalty in the development of a safety helmet, which competes with HISL's helmet and had acted in breach of his fiduciary duties not to report his activities during or after HISL is the employment contract.

These requests were approved by the judge in the Patents County Court, he determined that the acts of preparation prior to departure is not feasible and that there was no breach of duty of good faith and loyalty of employees. He noted that the employee was allowed to choose a company in competition with his employer, and that the provisional measures were allowed to do. He also concluded that there was no breach of fiduciary duty, because such an obligation had to adapt to his role as a seller.

The plaintiff appealed against this decision. On appeal the plaintiff to the fact that the defendant of the printed contract of employment, if it his duty to advise his employer about the activities of competitors and their pricing. They argued that it is therefore the duty to report such activities if they were accompanied by a competitor or by himself as part of its plan to compete with his former employer.

The complaint was dismissed. He found:

- Under these circumstances, although the defendants had activities amounted to competitors if they are from a competitor (and, therefore, if he had a fiduciary obligation not to misuse information on these activities for their own benefit or for the benefit of a person other than the applicant), not mean, however, that he is under a duty to inform HISL of its own activities.

- The words of the job specification is not the defendant, the freedom to prepare for the competition to leave. He was a seller not a designer, and it was never in consideration of both parties that he had a helmet. Clear words were needed to transform the ordinary freedom of an employee who quit his employment and the setting up in competition with his former employer, the defendant of the work specification is not done.

- He was under no relevant fiduciary duty to the plaintiff. The defendant owed no fiduciary obligations in relation to the development of a preliminary concept for a new helmet. Therefore, he was not in breach of that obligation by seeking to mobilize resources for such a project still in employment. The defendant was his idea in his own time and as a result developed the concept, belongs to him.

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© RT Coopers, 2007. This background information is not a comprehensive or complete statement of the law on the issues can not be considered legal advice. It is only on general issues. Specialist legal advice should always be sought in relation to the particular circumstances.

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