In an oral judgment handed down today, H.E. Justice Mark Pelling refused David Lee Rapp and Prime Energy Markets FZCO’s application for an order for interim relief to enforce non-compete clauses to prevent its former employee, Mr Roushanbakhti from being employed by Axis, an independent liquidity provider operating within the energy derivatives market.
The Claimants’ application was based on a suite of non-compete clauses in employment contract and an undertaking that were expressly subject to the exclusive jurisdiction of the Dubai Courts and a separate shareholders agreement (“SHA”) that contained a non-exclusive DIFC jurisdiction clause.
The Court held that it was plain as a matter of construction that the non-compete in the SHA which ran from the date of cessation of being a shareholder could not apply because Mr Roushanbakhti had never become a shareholder. There was a serious issue to be tried in respect of the non-competes in the employment contract and undertaking. However, in the context of three month non-competes which had just 12 days left before they expired, the Claimants’ unjustified delay of two months in bringing the application, meant that that it was not in balance of convenience to order interim relief in respect of those covenants. The Court also considered that there was a significant question whether Prime would be able to meet a damages awarded if the interim injunction turned out to be wrongly granted.
David Lee Rapp and Prime Energy Markets FZCO v Ahria Esphandiar Roushanbakhti and Axis Limited, CFI-017-2026.
A written judgment is to follow.
Edward Kemp KC, assisted by Georgina Churchhouse of Littleton Chambers and instructed by Luke Tapp, Emma Noble and Lujan Assaf of Pinsent Masons LLP acted for Mr Roushanbakhti and Axis Limited in successfully defeating this short notice application.