Central Innovation Pty Ltd v Garner (No 4) [2020] FCA 1796

FEDERAL COURT OF AUSTRALIA

Central Innovation Pty Ltd v Garner (No 4) [2020] FCA 1796 File number: NSD 2221 of 2016

Judgment of: BROMWICH J

Date of judgment: 16 December 2020

Catchwords: EMPLOYMENT – applications by two related companies in a group of entities relating to breach by the first respondent of contractual terms, or in the alternative, equitable fiduciary obligations or statutory obligations under Corporations Act 2001 (Cth) s 183 – where by virtue of his employment contract the first respondent had access to two customer databases containing details of customers of the second applicant – where the first respondent was made redundant – where in the period after the first respondent was made redundant, at least 37 customers of the second applicant sought to switch their provider to the new employee of the first respondent, the second respondent – whether the first respondent had entered a new contract of employment provided to him by the applicants in March of 2011 – whether the first respondent was employed by the first or the second or both applicants – whether the first respondent took and used either or both of the applicants' confidential information – whether any such taking and use by the first respondent was in breach of contractual, equitable or statutory obligations – whether any breach of contractual, equitable or statutory obligations caused loss to either or both of the applicants – the quantum of any loss caused by any breach of contractual, equitable or statutory obligations by the first respondent – held: the first respondent was employed by the first applicant to do work for the second applicant – the first respondent was bound by all the terms of the contract entered into on or about 30 November 2009 with clauses prohibiting the taking and use of the first and second applicants' confidential information – the first respondent did not enter a later second contract in March 2011 – the first respondent breached express contractual terms during his employment by the first applicant by taking and using the applicants' confidential information – the first respondent's breach of contract caused 36 customers of the applicants to switch service provider to the first respondent's new employer, the second respondent – quantum of loss of customers to be calculated by reference to two expert reports from the applicants' expert forensic accountant – the first respondent to pay damages and pre-judgment interest in an amount to be calculated on the evidence at trial of the applicants' expert forensic accountant – the first respondent to pay applicants' costs