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Extrec takes former employee to court

Crushing equipment company Extec Screens and Crushers is suing its after sales manager David Rice in a bid to stop him from working for a rival company.

Rice gave notice to leave his job on January 25 this year, but then withdrew this, and decided to continue working for the Derbyshire based company, it is alleged.

But within days, on February 14, he resigned with immediate effect and joined competitor Spares UK, in breach of restrictive terms in his contract, according to a High Court writ.

He agreed in his contract that for eight months after termination, he would not work in the restricted area, or for a restricted business, and would not provide any services similar to those he was supplying for a year after termination of his contract, the court will hear.

Extec Screens, which makes mobile crushers, screens and shredders for quarrying, mining and recycling, won a court order banning Rice from working for Spares UK until a court hearing, but he maintains he should be allowed to work for his new company, and would do so, without a court order, the writ claims.

If he does so, he is likely to inflict unquantifiable harm on Extecs business as a result of his knowledge of the companys trade information and confidential information, it is alleged.

Now Extec, which has a huge factory at Swadlincote in Derbyshire for its state of the art machines, is seeking injunctions banning Rice from breaching his contract and from breaching confidence, as well as claiming damages.

Rice, of 10 Manor Croft, Ripley, Derbyshire, is currently on garden leave, the court will hear. He started work for the company in October 2004, and remained employed by the company until May 13 2007, the writ says.

Extec says that during his work, Rice acquired Extecs confidential information including current and future machine sales and future plans of customers, sales volumes and activities, service schedules and requirements for machines, key customer details and requirements, manufacturing costs, costs of spare parts, suppliers arrangements and terms, relationships with clients, product development and strategic direction, warranty claims, warranty history and records, and the companys three year plan.

The writ was issued by DLA Piper UK ref AC PRA APS.

 

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