Oval agrees out of court settlement with Butterworth Spengler

Oval says it has secured a "significant" out of court settlement following a dispute with Liverpool broker Butterworth Spengler.

Oval said two former Oval account executives breached the conditions of their restrictive covenants upon joining the broker.

Oval’s regional managing director, Steve Penketh, said: “We take this breach of contract very seriously and will always seek to enforce our covenants in a very robust way.

"All Oval employees sign similar contracts, and are fully aware of the conditions and the consequences should they seek to ignore any material part of the agreement.”

In May, Butterworth Spengler announced the appointment of three new account executives: Andrew Thomson, Alan Tune and James Jaycock, who all joined from Oval.

Oval said it is the fourth dispute in the past three years which it has successfully contested.

In 2008, Oval was awarded a six-figure sum in compensation following successful court proceedings against rival broker Berkeley Burke, following the defection of four former Oval employees.

Other major consolidators - including Giles - have adopted tough stances over former employees who breach their restrictive covenants.