Faccenda Chicken Ltd v Fowler

A former employee may use the skill and knowledge acquired in his employment, but must not use or disclose trade secrets, and only trade secrets are protected after employment ends without a restrictive covenant.

Citation
[1987] Ch 117
Court
Court of Appeal (Civil Division)
Year
1987
Subject
Intellectual Property Law
Topic
Breach of confidence and trade secrets

Facts

Mr Fowler was the sales manager of Faccenda Chicken, which sold fresh chickens from refrigerated vans to shops and restaurants. He left and set up his own business, selling chickens in the same area, and was joined by several of Faccenda's employees. He used his knowledge of Faccenda's customers, their requirements and the prices they paid. He had no restrictive covenant. Faccenda sued for breach of confidence.

Legal principle

The Court of Appeal held that Mr Fowler was not liable. Neill LJ said that information acquired by an employee falls into three classes: information which is trivial or easily accessible from public sources; information which the employee must treat as confidential while employed, but which becomes part of his own skill and knowledge, which he can use after leaving; and specific trade secrets so confidential that they cannot be used for anyone's benefit but the employer's, even after the employment ends. The information about customers and prices was in the second class, so Mr Fowler could use it after he left, in the absence of a restrictive covenant.

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