Directed Electronics OE Pty Ltd v OE Solutions Pty Ltd (No 8) [2022] FCA 1404

FEDERAL COURT OF AUSTRALIA

Directed Electronics OE Pty Ltd v OE Solutions Pty Ltd (No 8) [2022] FCA 1404 File number: VID 1157 of 2017

Judgment of: BEACH J

Date of judgment: 24 November 2022

Catchwords: CORPORATIONS – fiduciary relationship – contractual relationship – South Korean manufacturer and supplier of audio-visual units – supply to Australian entity – on-supply by Australian entity to original equipment vehicle manufacturers (OEMs) – employees of Australian entity assisting South Korean manufacturer to set up Australian rival to supply OEMs – diversion of business opportunities – misappropriation of business providing in-vehicle electronic products – audio-visual units – telematic devices and telemetry services – breach of contract – exclusivity in distribution arrangements – breach of fiduciary duties – misuse of confidential information – infringement of copyright – former employees' fiduciary and contractual obligations – breaches of ss 182 and 183 of Corporations Act 2001 (Cth) – accessorial liability – knowing involvement in breach of statutory duties – claims under second limb of Barnes v Addy – dishonest conduct by former employees – participation of other entities – constructive knowledge – secret commissions

Legislation: Corporations Act 2001 (Cth) ss 182, 183

Cases cited: Allstate Life Insurance Co v Australia and New Zealand Banking Group Ltd (1995) 58 FCR 26 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1 Baden v Société Générale pour Favoriser le Développement du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Barnes v Addy (1874) LR 9 Ch App 244 Beam v Stewart 833 A 2d 961 (Del Ch, 2003) Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Briginshaw v Briginshaw (1938) 60 CLR 336 Byrne v Australian Airlines Ltd (1995) 185 CLR 410 Canadian Aero Service Ltd v O'Malley (1973) 40 DLR (3d) 371 Caswell v Powell Duffryn Associated Collieries Ltd [1940] AC 152 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169 Commonwealth v John Fairfax & Sons Ltd (1980) 147 CLR 39 Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 Cranleigh Precision Engineering Ltd v Bryant [1964] 3 All ER 289 Crawford Fitting Co v Sydney Valve and Fittings Pty Ltd (1988) 14 NSWLR 438 Daraydan Holdings Ltd v Solland International Ltd [2005] Ch 119 Dart Industries Inc v David Bryar & Associates Pty Ltd (1997) 38 IPR 389 Dixon Projects Pty Ltd v Masterton Homes Pty Ltd (1996) 36 IPR 136 Donaldson v Natural Springs Australia Limited [2015] FCA 498 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Fightvision Pty Ltd v Onisforou (1999) 47 NSWLR 473 Furs Ltd v Tomkies (1936) 54 CLR 583 Global Brand Marketing Inc v Cube Footwear Pty Ltd (2005) 65 IPR 44 Gold Peg International Pty Ltd v Kovan Engineering (Aust) Pty Ltd (2005) 225 ALR 57 Griggs (R) Group Ltd v Evans [2005] EWCA Civ 11 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609 Hawkins v Clayton (1988) 164 CLR 539 Heimann v Commonwealth (1938) 38 SR (NSW) 691 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Howard v Federal Commissioner of Taxation (2014) 253 CLR 83 Industries & General Mortgage Co Ltd v Lewis [1949] 2 All ER 57 Jones v Dunkel (1959) 101 CLR 298 Kovan Engineering (Aust) Pty Ltd & Ors v Gold Peg International Pty Ltd (2006) 234 ALR 241 Lumley v Gye (1853) 118 ER 749 March v E & M H Stramare Pty Ltd (1991) 171 CLR 506 Mastec Australia Pty Ltd v Trident Plastics (SA) Pty Ltd (No 2) [2017] FCA 1581 Medical Benefits Fund of Australia Ltd v Cassidy (2003) 135 FCR 1 Mense & Ampere Electrical Manufacturing Co Pty Ltd v Milenkovic [1973] VR 784 OBG Ltd v Allan [2008] AC 1 Pereira v Director of Public Prosecutions (1988) 82 ALR 217 R v Byrnes & Hopwood (1995) 183 CLR 501 Ray v Classic FM Plc (1998) 41 IPR 235 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134 Reigate v Union Manufacturing Co (Ramsbottom) Ltd [1918] 1 KB 592 Royal Brunei Airlines Sdn Bhd v Philip Tan Kok Ming [1995] 2 AC 378 Saltman Engineering Co Ltd v Campbell Engineering Co Ltd (1948) 65 RPC 203 Short v City Bank of Sydney (1912) 15 CLR 148 Short v City Bank of Sydney (1912) 12 SR (NSW) 186 The Moorcock (1889) 14 PD 64 The Zamora (No 2) [1921] 1 AC 801 University of Nottingham v Fishel [2000] ICR 1462 Warman International Ltd v Dwyer (1995) 182 CLR 544 Yorke v Lucas (1985) 158 CLR 661 Zhu v Treasurer (NSW) (2004) 218 CLR 530