Claim of the employer against the former employee for breach of the non-competition clause

Facts

In this case, it was about a claim by M.H. AG (plaintiff) against its former employee H. (defendant) for breach of a contractual non-competition clause. The plaintiff had its registered office in Bischofszell/TG, while the defendant was domiciled in Boniswil/AG. The lower courts had affirmed the jurisdiction of the courts of the canton of Thurgau, whereupon the defendant appealed.

Considerations

The Federal Supreme Court held that according to Art. 343 para. 1 CO, the place of jurisdiction is optionally at the defendant's place of residence or at the place of the business for which the employee worked. This provision also applies after termination of the employment relationship to disputes over the contractual non-competition clause.

Although Art. 343 CO primarily serves to protect the employee, it can also be applied in favor of the employer. The plaintiff had therefore been free to choose…