Digital Central Australia (Assets) Pty Ltd v Stefanovski (No 2) [2017] FCA 1000

FEDERAL COURT OF AUSTRALIA

Digital Central Australia (Assets) Pty Ltd v Stefanovski (No 2) [2017] FCA 1000 File number: QUD 865 of 2016

Judge: LOGAN J

Date of judgment: 25 August 2017

Catchwords: EQUITY – confidential information – use of confidential information – scope of protection CONTRACT – intellectual property – confidential information – where use of confidential information in breach of contract – restraint of trade – obligations of franchisee as to confidential information after termination of contract – effect of explicit contractual restraint – scope of protection – damages EQUITY – injunctions – former franchisee of applicant created corporation to compete with applicant both during and following contractual relationship with applicant – former franchisee used confidential information in businesses run in competition with applicant – conduct of former franchisee in breach of equitable obligations owed to applicant and statutory duties – damages for breach of contract and equitable compensation inadequate to protect interests of party EQUITY – equitable remedies – doctrines and principles – imposition of duty of confidence – necessary conditions TRADE PRACTICES – misleading or deceptive conduct – unconscionable conduct – breach of statutory duty of good faith in franchise agreement – concealment of intention before and after termination and sale of franchise to cause company to engage in competition with franchise business – knowing assistance – injunction - damages

Legislation: Competition and Consumer Act 2010 (Cth) s 80 Corporations Act 2001 (Cth) ss 131, 133 Federal Court of Australia Act 1976 (Cth) s 51A Trade Practices Amendment (Australian Consumer Law) Act (No 2) 2010 (Cth) s 87 Australian Consumer Law s 232 Companies (New South Wales) Code 1981 (NSW) s 81