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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Red Bull Technology Ltd v Fallows [2021] EWHC 3502 (QB) (17 December 2021) URL: http://www.bailii.org/ew/cases/EWHC/QB/2021/3502.html Cite as: [2021] EWHC 3502 (QB) |
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ROYAL COURTS OF JUSTICE
Queen's Bench Division
B e f o r e :
BETWEEN:
____________________
RED BULL TECHNOLOGY LIMITED | Claimant | |
-v- | ||
DAN FALLOWS | Defendant |
____________________
Lower Ground, 18-22 Furnival Street, London, EC4A 1JS
Tel No: 020 7404 1400
Web: www.epiqglobal.com/en-gb/ Email: [email protected]
(Official Shorthand Writers to the Court)
____________________
Crown Copyright ©
MR JUSTICE LINDEN:
Introduction
a. The first in time is an application by the defendant for specific disclosure, made on 6 December 2021. Part of that application is no longer live because the disclosure sought has been, or is in the course of being, provided. The second part of the application has been narrowed significantly and I will return to the details of what is now sought.
b. The second application was made by the claimant on 13 December 2021 and it is to amend the Particulars of Claim. This application is not opposed, although there is disagreement as to the consequential directions which I should make.
Relevant background
"a. The duty to exercise any discretion in good faith, for a proper purpose rationally, without perversity or caprice, taking into account only relevant matters, and not taking into account irrelevant matters.
b. The duty to conduct a proper grievance process."
"d. Mr Fallows stated that in other cases where RBTL employees with minimum terms had sought to leave their employment before the expiry of those minimum terms, RBTL had consulted with those employees and treated them fairly. Mr Fallows was referring to cases where employees with minimum terms had been permitted to leave to join competitors prior to the expiry of their minimum term and/or had been retained in their existing roles throughout the remainder of their employment. Indeed, since 2013, Mr Fallows had had a number of discussions with both Mr Horner and, more often, Ms Poole about employee retention. He was repeatedly told that RBTL had received legal advice to the effect that it would struggle to keep an employee away from a competitor for more than six months should they decide to leave prior to the expiry of their minimum terms."
"i. The inconsistent treatment of Mr Fallows compared to other employees as pleaded at paragraph 30(d) above."
"... is engaged by RBTL under a contract which provides for a 26 month minimum term, and a 6 month notice period. Such minimum terms and notice periods are commonplace in Formula ('F1'). They provide necessary protection inter alia for RBTL's confidential and sensitive information. Mr Fallows' considered view, when he agreed to that contract, was that the minimum term and notice were 'fine overall', as set out below." (emphasis added)
"5.1 Express minimum terms and notice periods are commonplace in employment contracts generally and in the motor racing industry in particular."
5.2 The restraint of trade doctrine does not apply to such minimum terms and notice periods, or to negative obligations during the currency of an employment contract."
"Without prejudice to that position, and as to paragraphs 47 to 49:
8.1 The minimum term goes no further than is reasonably necessary to protect RBTL's legitimate interests, including its confidential information and workforce stability."
8.2 It is precisely for that reason that Mr Fallows has required that other aerodynamicists in his division should sign contracts with minimum terms and notice."
"Mr Fallows does not identify the alleged 'employees with minimum terms referred to. RBTL cannot sensibly respond to such a case. In any event, no employee in a position comparable to Mr Fallows has ever been released prior to the end of their contractual term and/or remained in an F1 role for the remainder of their employment." (emphasis added)
a. In the case of Mr Robinson, he indicated an intention to leave in January 2021. His contract does not permit him to give notice until 31 December 2021, and then he is required to give six months' notice, so his minimum term expires on 30 June 2022. I understand that he has been held to his contract and was, indeed, moved to Red Bull Advanced Technologies.
b. Mr Alessi gave notice in December 2020 and was required to work his 6 month notice period. He was also moved to Red Bull Alternative Technologies during his notice period.
c. Mr Sordo informed the claimant that he intended to move to McLaren in or about February 2016. He apparently spent 8 months on garden leave and was then released 10 weeks before the end of his minimum term and without having to serve notice. Ms Horne, the partner acting for the claimant's, evidence, is that this was part of a broader commercial deal with McLaren which also involved employees moving from McLaren to Red Bull.
d. In the case of Mr Prodromou, it is said by the claimant that he gave notice in December 2013 and was placed on garden leave in April 2014. Ms Horne's witness statement states that this was until December 2014, but there is evidence that he had joined McLaren by 15 September 2014.
The application for specific disclosure.
"1. By 4 pm on [22 December 2021], the Claimant shall (i) carry out a reasonable search to locate all documents in the classes/repositories listed in the Schedule annexed to this Order and make and serve on the Defendant a list of the documents found as a result of such search which fall within the scope of standard disclosure, accompanied by a Supplemental Disclosure Statement; and (ii) provide a copy of those documents to the Defendant by way of inspection."
"1.2 in respect of the following employees ("the Relevant Employees")
1.2.1 Mark Robinson, Andrew Alessi, Peter Prodromou, Stefano Sordo or Peter Machin; and
1.2.2 employees at the level of Group Leader or above, across the Vehicle Design, Vehicle Dynamics and Simulation, Technology and Analysis Tools, and Aerodynamics departments of the Claimant's F1 business, who have left the Claimant's employment or given notice to leave the Claimant's employment during the date range, in each case to join another F1 team."
"1.3 for documents relating to:
1.3.1 job title;
1.3.2 length of any contractual minimum term (with relevant dates);
1.3.3 contractual notice period (with relevant dates);
1.3.4 whether, following notice of resignation (or notice of intention to resign), the Relevant Employee was required to remain in the Claimant's employment for (a) the minimum term; and/or (b) notice period (with relevant dates);
1.3.5 if not, details of the shorter period(s) applied (with relevant dates)."
The claimant's position.
a. The comparators named by the defendant on 12 November 2021 have been covered in the standard disclosure provided thus far. If proportionate additional searches are proposed by the defendant, the claimant is willing to consider them.
b. The claimant is willing to carry out a reasonable search for documents relating to Mr Sykes, and would have done so if he had been named in the 12 November 2021 list.
c. Insofar as the defendant says that he was treated differently in 2013, the claimant is willing to carry out a reasonable search for documents going to this point.
42. In the case of the further searches in respect of Mr Sykes and the defendant that the claimant offers to carry out, they would be in accordance with the searches described at paragraph 61 of Ms Horne's witness statement dated 14 December 2021.
a. The likely lack of probative value of the documents sought, including the extent to which the documents themselves would actually shed light on what happened in a given case and why.
b. The likelihood that the documents sought under the order applied for by the defendant would not answer all of the questions that arose in the case of any particular comparator and would, as a result, require further disclosure and, indeed, evidence dealing with the circumstances of that particular comparator.
c. Following on from (b), the undesirability of trials within trials. He points to the danger that the parties will be distracted from the central issues in the case which relate to the defendant's particular contract and the claimant's treatment of him in his particular circumstances.
d. The risk of compromising the trial timetable, given the very real practical difficulties in obtaining the documents sought. Mr Devonshire draws attention to Ms Horne's evidence that the claimant does not routinely maintain human resources records over long periods. Typically, though not invariably, only limited data are retained for data protection reasons. The claimant, the evidence suggests, updated its records around 4 years ago and the records which pre-date that period are in less accessible format. In relation to emails, the evidence suggests that the claimant moved to a new email system in around 2014 and the retrieval of emails prior to 2015 will therefore depend on the archiving and data storage habits of individual employees.
Decision