Balston Ltd v Headline Filters Ltd [1990] FSR 385

• Defendant was director of a company which made filter tubes. Gave notice of termination of employment in March, which ended in July.

  • Before July Defendant was contacted by one of company’s customers, and told customer that he would be able to supply tubes in his own right after July

  • Between March and July, Defendant made preparations to manufacture tubes; bought equipment and employed some of employees of company.

• Claimant sued for breach of duty of fidelity.

Facts

• Was breach of duty of fidelity

  • Buying equipment in preparation for starting company not breach

  • However canvassing of Defendant’s customers and employment of Defendant’s staff by Claimant whilst still an employee was breach of duty of fidelity