Are you protected from employees sharing sensitive information with competitors?

Abby Mercer, Solicitor

Lessons learned from Boxxer Ltd v Wischhusen [2025] EWHC 2386 (KB)

A recent ruling in the High Court, Boxxer Ltd v Wischhusen, is an ever-important reminder to all business owners that you should never run your business on informal or unsigned agreements.

This claim was between the prominent boxing promoter Boxxer Ltd, and a senior employee, Boxxer’s former Head of Boxing, John Wischhusen, where the allegation was that Wischhusen had been doing business with competitors whilst employed by Boxxer.

The ruling granted an injunction until the trial, preventing Wischhusen from doing business with Boxxer contacts for several months. Although no formal consultancy agreement had been signed, the court accepted that both parties had acted in line with a draft agreement containing exclusivity and non-compete clauses, despite Wischhusen’s argument that the agreement was not effective due to it being unsigned. The judge stressed the need to protect Boxxer’s commercial interests and prevent irreparable harm.

Why this matters

For both business owners and senior employees, this case is a glaring reminder of the risks posed by informal or unsigned agreements.

For business owners, having informal arrangements runs the risk of senior employees using their position to take key business relationships and sensitive information to competitors. Without the certainty of a signed agreement, both parties are likely to suffer exposure to long and expensive litigation to prove their positions. In this case, Wischhusen has no doubt suffered reputational damage, despite his argument that his employment was actually based on informal agreements reached by email.

While the employer in this case came out of this claim victorious, clearly it is preferable to avoid notoriously expensive injunctive proceedings and the potentially damaging sharing of information to competitors. Further, in the case of any employee, it is important to remember that conduct can be binding, even where documents remain unsigned.

What should you do if your business is currently acting on unsigned or informal arrangements?

1. Audit Your Current Position: Identify senior personnel operating under informal, unsigned, or expired agreements.
2. Formalise Agreements Immediately: Ensure all key obligations—confidentiality, exclusivity, non-compete, and notice periods—are documented and signed.
3. Review Restrictive Covenants: Confirm they are reasonable and enforceable under current law.
4. Implement Exit Protocols: When relationships end, confirm obligations in writing and secure company data.
5. Seek Legal Advice Early: If a dispute arises, act quickly to preserve evidence and consider interim relief options.

Most importantly, do not rely on conduct or unsigned drafts. Formal agreements are essential to protect your business from competitive harm and avoid costly litigation. The Dispute Resolution Team here at Kuits are experts in high value commercial disputes and can assist with any issues you may be facing in view of this case. They can be contacted on 0161 832 3434 or via our website.