Welcome to the Mundays Business update providing you with a summary of the latest legal changes affecting your business.
Model Behaviour
Directors are reminded that their actions can have consequences not only to them personally but to the company of which they are a director. The director of a modelling agency was recently reminded of this.
Premier Model Management Limited (“Premier”) brought a claim against a former employee, Mr Bruce. The claim was also brought against, Mr Bruce’s friend Mr Ribeiro and Mr Ribeiro’s modelling management company. The claim regarded the assertion that Mr Ribeiro and his company induced Mr Bruce to breach his contract with Premier.
Mr Bruce’s employment contract prevented him from soliciting business or employees from Premier and it was discovered that after he had handed in his notice, but during his notice period, he had been sending confidential information to Mr Ribeiro. When he left Premier, Mr Bruce joined Mr Ribeiro’ management company.
Although Mr Ribeiro had not responded to the emails containing the confidential information he had failed to stop Mr Bruce from sending them. The court also noted that Mr Ribeiro was the directing mind of the management company.
The Court had no hesitation granting an injunction against Mr Bruce, Mr Ribeiro and his management company co-preventing all three from attempting to entice away the business of any model or other person represented by Premier until twelve months after Mr Bruce’s employment. It is always important to remember your responsibilities not only as an individual but especially if you represent a corporate entity.
If you need any further details about directors’ responsibilities please contact Chris Saunders
Water, water everywhere
According to the Environment Agency, 5.2 million properties in the UK, that is one in every 6, are at risk of flooding. Although properties near rivers and the sea are easy to identify, less obvious are properties vulnerable to ground water flooding, which occurs because the water table is too high for rain water to soak away, and surface water flooding, where the drainage system is unable to cope with the volume of water flowing into it. Surface water flood risk affects 2.4 million properties.
Businesses and individuals need to be aware that from 1 July 2013 it may become significantly more expensive or maybe even impossible to insure properties at risk of flooding.
In 2008 the Government and the Association of British Insurers agreed a Statement of Principles under which insurers continue to insure properties, even those at high risk, whilst the Government works on finding and funding solutions to minimise flood risk. The arrangement ends on 30 June 2013.
Since the arrangement was put in place, public funding has been squeezed and less public work than anticipated has been carried out on flood prevention and defence measures. However, the Government has produced improved flood risk mapping and it is now easier for insurers and property owners to identify properties at risk.
The ABI and the Government have been trying to hammer out a new arrangement. As yet, they have been unable to agree the way forward. Insurers could share the burden between all their customers but unless all insurers are obliged to do this, it will not be workable. If insurance becomes entirely risk based then high risk properties may become uneconomic to insure or uninsurable. This will have an impact on the availability of mortgages and, as a result, on the saleability and value of those properties.
Some good news is that the flood defence industry in the UK is developing and there are physical alterations that can be made to some properties to reduce the likelihood of flood waters entering. Insurers will consider works of this nature when assessing a property.
If you are thinking of acquiring a property you should ensure that you are aware of the level of flood risk. If you already have a property that is vulnerable, keep an eye on announcements in the press and consider renewing your insurance early in order to beat the deadline.
For further information on this please contact Ingrid Saffin
