The High Court has approved an order to prohibit a former top manager at a medical device component producer from accepting employment at a competitor, ahead of a dispute hearing about if a non-compete clause controlled his employment. Niall Cullen, erstwhile product manager at Galway-based Irish firm, Creganna Ltd, was given a leading role at competitor Lake Region Medical earlier this year.
Creganna functions within the TE Medical division, a branch of a global company called TE Connectivity, which is under the ownership of the Swiss-based Tyco Electronics Group SA. TE Connectivity holds a high-ranking position globally in the medical device outsourcing field, possessing specialisation in the creation and production of minimally invasive delivery and access tools for various medical treatments.
This past January, Mr Cullen, who had a pivotal role in retaining connections with influential decision makers in numerous global customer companies during his time as senior product manager at Creganna, resigned. His cessation of employment concludes on 29th April.
It came to Creganna’s knowledge that he was set to accept a leading role at Lake Region Medical – part of the Integar group, another significant world manufacturer of medical appliances. In light of this, Creganna initiated High Court proceedings with the aim of interfering with his pursuit to commence employment after April 29th. In Creganna’s claim, he would be infringing a non-compete clause within his contract that blocks him from working for a rival within a year of his service termination.
According to Creganna, this non-compete clause was crucial to safeguard its lawful interest in keeping its extremely sensitive business information confidential. Creganna asserted that the information will certainly be endangered if he joins Lake Region Medical. Mr Cullen and Lake Region, also facing a lawsuit, argue that the non-compete clause is null and unenforceable on account of it being unjustifiable, unreasonable and overly wide-ranging.
Mr Justice Oisín Quinn expressed his satisfaction that Creganna had successfully demonstrated there was a case with substance to be proven. If Mr Cullen took the new role, it may amount to a breach of contract subject to lawful proceedings, as it would be a violation of the non-compete clause in his employment contract. He was convinced that Creganna had put forth a considerable case to be proven that the non-compete clause is legitimate.
The judge was content, recognising that Creganna was ready to maintain Mr Cullen’s wage until the court case’s completion, scheduled for the coming July. This measure would uphold the status quo while ensuring minimal potential for unjust outcomes pending resolution or additional ruling. Additionally, the court dismissed Mr Cullen’s assertion that Creganna demonstrated tardiness in filing its prohibition request.