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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 >> Legends Live Ltd v Harrison [2016] EWHC 1938 (QB) (12 July 2016) URL: http://www.bailii.org/ew/cases/EWHC/QB/2016/1938.html Cite as: [2016] EWHC 1938 (QB), [2017] IRLR 59 |
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QUEEN'S BENCH DIVISION
Strand London WC2A 2LL |
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B e f o r e :
BETWEEN:
____________________
LEGENDS LIVE LIMITED |
Claimant |
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And |
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CRAIG HARRISON |
Defendant |
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of WordWave International Limited
Trading as DTI
165 Fleet Street, London EC4A 2DY
Tel No: 020 7404 1400, Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
MANUS EGAN (instructed by Pattinson Brewer) appeared on behalf of the Defendant
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Crown Copyright ©
Background facts
"Hi Richard,
I have been having a long think over the last couple of days about my financial circumstances next year. At the time I thought I could afford to do the 3 dates but thinking things through properly, it's not going to be possible for me to do next year I'm afraid. Sorry to tell you this, but I wanted to be 100% certain before I made this decision, I need to think about making plans to go back to work and still do my gigs every weekend. My plans to go back to work will be at the start of the year once Christmas is out of the way."
"Please can you tell me what money would keep you on board?"
"The reason I'm making this decision is that I need a guaranteed wage coming in every week and not just the summer which works out that my total income would be a lot more. Please understand that I'm not doing this to try and get more money as I would never do that to you. It's just a decision that I've made which works out better for me."
"I'd like to ask you to think about the offer and any way you can make this work, I would hope we have earned your consideration. Is there not a practical solution to you doing both?"
"Please understand that this is purely a financial decision and in no way want to cause any problems with us on a personal level."
"When I met Craig to discuss engaging him for the show, he told me that he had a barring restriction in his contract with Legends but could not recall how long it was for. At the time he only had the first page of the contract, which I was not shown and he stated he was trying to get the whole contract from Legends, which I did not see to date. I assumed that the barring clause was for a few months as most artistes' contracts are. After advice and reassurance from Equity (Jamie Briers) that the contract conditions were not acceptable due to time clauses and too restraining, and the contract was not Equity approved, Craig was advised by Jamie Briers to move forward with his plans to work with the Kings and Queen show. We announced on 3 January 2016 that The Legacy (Craig Harrison) would be joining the Kings and Queen show."
The contract
"THE ATTACHED TERMS AND CONDITIONS FORM AN INTEGRAL PART OF THE CONTRACT."
"I/we have read and agree the clauses and conditions, which form an integral part of this contract detailed on the reverse of the contract"
"If the artist appears on a show with more than one other look/sound- alike tribute character the Legends publicity must not be featured at all on any associated publicity in that this may engender the mistaken belief, in the minds of the public that this is a Legends production. The artiste also agrees to undertake a covenant not to compete on any other look/soundalike shows in Blackpool for a period of 12 months from the final date of their current contract."
"2015 was the best year yet! I achieved more than I expected and met so many great people along the way, thank you to the everybody involved at Legends show Blackpool and Richard Chance. I have decided not to return to Legends next year but thanks for making this the highlight of my career so far! My life has changed so much in the last 12 months and I have met the best person to share it with, Lucy! I have big plans for 2016 and I am now certain that 2016 is going to be an even bigger and better year! So to all the people who have been a part of my life for the past 12 months, in and out of the entertainment industry, Happy New Year! And here's to 2016"
"We would like to introduce to our 2016 line-up Craig Harrison as Michael Jackson and the Fabulous Invincible Dance …"
There it breaks off in the version which I have.
"I'm happy to announce that this summer season 2016 I will be performing in a fantastic new show 'Kings and Queen of Rock, Pop and Roll' at the Central Pier in Blackpool. Hope to see you there. It's going to be explosive!!"
The issues
(1) the clause is unenforceable because of the Employment Agencies Act 1973 ("the 1973 Act") and the Employment Agencies and Employment Businesses Regulations 2003 ("the 2003 Regulations").
(2) The claimants have failed to show that the covenant is enforceable in law because it does not protect a legitimate interest of the claimant; and (ii) it imposes a wider restriction than is reasonably necessary to protect such any interest which may exist.
(3) The defendant contends that, even if the covenant is enforceable, no injunction should be granted to enforce it because of the conduct of the claimant in these proceedings.
The 1973 Act and the 2003 Regulations
"For the purposes of this Act 'employment business' means the business (whether or not carried on with a view to profit and whether or not carried on in conjunction with any other business) of supplying persons in the employment of the person carrying on the business, to act for, and under the control of other persons in any capacity."
"If this agreement is entered into by Talent's Representative and Talent's Representative will procure that Talent observes each of the obligations on Talent under this agreement."
"In my view, the notion of 'control' in s. 13(3) has regard to the practical levels of control transferred and retained under the supply arrangement, without any artificial limitation of the kind proposed by Mr Hitchmough, and requires an overall evaluative judgment to be made whether the predominant power of control of what the employee does has been transferred by the supplier to 'other persons'."
"In a situation where elements of control are divided between different persons, the natural meaning of 'the control' is the predominant practical control over what the transferred employee does. This view is also supported by the overall scheme of the 1973 Act, which originally created a burdensome licensing and regulatory regime applicable to 'employment businesses'. It is not plausible to suppose that Parliament intended to bring businesses within the scope of such a regime on the basis of the extremely diluted test put forward by Mr Sinfield."
"The law has long regarded it as possible in appropriate contexts that an act which A procures B to do should be regarded as done by A. The existence of a degree of control over a worker consistent with his being an employee of A is not necessarily disproved by showing that B had equal or even greater powers over him.
In the present case once he was at the appellant's site, the respondent became largely subject to control much as would have been the case had he been an ordinary full-time employee. It was the appellant who, in the words of MacKenna J in Ready Mixed Concrete (South East) Limited v The Minister of Pensions and National Insurance determined:
'… the thing to be done, the way in which it shall be done, the means to be employed in doing it, the time when, and the place where it shall be done.'
It was the appellant's manager who suspended him following a discipline hearing and decided to terminate his assignment."
The covenant at common law
Discretion
"The defence of laches arises if two conditions are satisfied: First, there must be unreasonable delay on the part of the plaintiff in the commencement or prosecution of proceedings, and secondly, in view of the nature and consequences of that delay, it must be unjust in all the circumstances to grant the specific relief that is in question, whether absolutely or on appropriate terms or conditions."
"But it is not sufficient that the defendant should be able to show merely that the plaintiff has been guilty of unreasonable delay. It must be shown further that the delay in question had rendered unjust the grant of the particular relief that is sought. So ordinarily it must be established that, by reason of the material delay, either the plaintiff has gained an unjust advantage or the position of the defendant has been altered so that an injunction now granted would operate more harshly upon him than an injunction granted without delay or that some other such consideration has arisen so that, in all the circumstances it is just that the plaintiff should be confined to such other remedies as he may be entitled to."
"Although I would not suggest that it is an immutable requirement, some sort of detrimental reliance is usually an essential ingredient of laches, in my opinion."
The facts relevant to the conduct issue
"… confirmation that you will not enter into any such engagements by no later than 23 March 2016 failing which anticipate instructions to institute legal proceedings against you, obviously with the full support of The Sands Venue owner, Peter Swan, and to include claims for injunctive relief and for damages to include penal damages and legal costs on an indemnity basis. Additionally, of course, proceedings will be instituted against all relevant third parties, including but not limited to the producers of the show, Northern Music Audio, Nick Armitage, for inducing you to breach your aforesaid contract with our clients and to whom a copy of this letter has been sent."