Legal proceedings by financial services group Friends First against two former employees, who allegedly led a defection of several staff to Bank of Scotland, have been resolved at the High Court.

The action was struck out by Mr Justice Kelly yesterday on the basis of undertakings given by the defendants, Mr Frank Donnellan, of Stillorgan Heath, Stillorgan, Co Dublin, and Mr Declan Fitzpatrick, Upper Kilmacud Road, Dundrum, Dublin, the former sales and credit directors respectively of the plaintiff's motor finance division.

Both men had handed in their notice on September 5th last.

A copy of the undertakings was handed into the court by Mr Oisin Quinn for Friends First.

Both men, represented by Mr Patrick Hanratty, SC, and Mr Tom Mallon, undertook not to directly or indirectly contact any existing or past employee or consultant of the plaintiff who had tendered their resignations last month, with a view to taking up employment with Bank of Scotland (Ireland) or any associated firms for any business purpose until December 5th.

They also undertook not to contact any customers, dealers, suppliers, distributors or other persons or companies with whom Friends First carries on business, including prospective customers or clients. A further undertaking to refrain from contacting Bank of Scotland (Ireland) or any associated or related firm to exchange or discuss any information about any business matter until December 5th last was given. Outside the court, both defendants said they were "very happy" with the outcome and that they had offered such undertakings before the matter went before the court.

In its proceedings, Friends First had sought declarations that the defendants had unlawfully conspired to cause damage to the firm and/or had unlawfully interfered with its economic interests.

The company also sought injunctions restraining any contact for business purposes between the defendants and former employees, customers, clients or prospective clients of Friends First.