Plus One International Pty Ltd v Ching (No 3) [2020] NSWSC 1598

Supreme Court New South Wales

Medium Neutral Citation: Plus One International Pty Ltd v Ching (No 3) [2020] NSWSC 1598 Hearing dates: 25 – 27 August 2020 Date of orders: 13 November 2020 Decision date: 13 November 2020 Jurisdiction: Equity Before: Hallen J Decision: The Court: (1) Directs the parties, within 14 days, to undertake the calculations which will give effect to these reasons for judgment and to provide the Court with draft short minutes of order which reflect the matters of quantum about which they are agreed and those in dispute. (2) Directs the parties to attempt to agree on an order as to costs. (3) Directs that if the parties are unable to agree on draft short minutes of order, or are unable to agree on costs, then, within 7 days thereafter, their respective draft short minutes of order, and short submissions, of no more than 3 pages, as to the differences between them, in hard and soft copy, are to be provided to the Court. Catchwords: EMPLOYMENT AND INDUSTRIAL LAW – Contract – Breach of contract by use of what was said to be confidential information – Where no written contract of employment – Where Defendants alleged to have taken confidential documents and client contacts – Where Defendants alleged to have established a competing business using the confidential information as a "springboard" – Whether Defendants breached implied duties of fidelity and confidentiality – Whether Plaintiffs entitled to an injunction EQUITY – Breach of confidence – Conduct constituting breach – Where Defendants alleged to have taken confidential information and client contacts – Where Defendants alleged to have established a competing business using confidential information as a "springboard" – Whether equitable duty persists where an equivalent contractual duty exists – Whether Defendants breached their equitable obligation – Whether Plaintiffs entitled to an injunction or account of profits EQUITY – Fiduciary duties – Fiduciary relationships – Employee and employer – Conflict of interest and duty – Where Defendants' position low in the hierarchy of the Plaintiffs' business – Whether fiduciary duty arises CORPORATIONS – Employees – Duties – Duty not to use position as employee improperly – Duty not to use information improperly – Whether information required to be "confidential" – Whether Defendants contravened provisions of the Act Legislation Cited: Civil Procedure Act 2005 (NSW), ss 21, 60 Corporations Act 2001 (Cth), ss 9, 180, 181, 182, 183, 184, 185, 1317E, 1317H, 1317J Education Services for Overseas Students Act 2000 (Cth) Evidence Act 1995 (NSW), s 140 Uniform Civil Procedure Rules 2005 (NSW), rr 14.27, 21.2, 23.8, 25.19, 31.3, 31.10, 34.1 Cases Cited: Adler v Australian Securities and Investments Commission (2003) 179 FLR 1; [2003] NSWCA 131 AG Australia Holdings Limited v Burton (2002) 58 NSWLR 464; [2002] NSWSC 170 Agricultural Land Management Ltd v Jackson (No 2) (2014) 48 WAR 1; [2014] WASC 102 AIIB Pty Limited v Beard [2009] NSWSC 1001 Amway Corporation v Eurway International Limited [1973] FSR 213 Ancient Order of Foresters in Victoria Friendly Society Limited v Lifeplan Australia Friendly Society Limited (2018) 265 CLR 1; [2018] HCA 43 Andrews Advertising Pty Ltd v Andrews (2014) 99 ACSR 164; [2014] NSWSC 318 Antony Leslie John Woodings as liquidator of the Bell Group Ltd and the Bell Group Finance Pty Ltd v WA Glendinning and Associates Pty Ltd [2019] WASC 54 Arnold v Forsythe [2012] NSWCA 18 ASIC v Rich (2006) 235 ALR 587; [2006] NSWSC 826 ASIC v Somerville (2009) 77 NSWLR 110; [2009] NSWSC 934 Australian Securities & Investments Commission v Lewski (2018) 266 CLR 173; [2018] HCA 63 Automotive Dealer Administration Services Pty Ltd v Kulik [2010] VSC 293 Bayley & Associates Pty Ltd v DBR Australia Pty Ltd [2013] FCA 1341 Bigsby v Dickinson (1876) 4 Ch D 24 Birtchnell v Equity Trustees, Executors and Agency Company Limited (1929) 42 CLR 384; [1929] HCA 24 Blatch v Archer (1774) 98 ER 969 Blyth Chemical Limited v Bushnell (1933) 49 CLR 66; [1933] HCA 8 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Byrne v Australian Airlines Limited (1995) 185 CLR 410; [1995] HCA 24 Camden v McKenzie [2008] 1 Qd R 39; [2007] QCA 136 Cellarit Pty Ltd v Cawarrah Holdings Pty Ltd [2018] NSWCA 213 Champions Ride Days Pty Ltd v McFarlane [2019] QDC 236 Chew v The Queen (1992) 173 CLR 626; [1992] HCA 18 Clear Wealth Pty Ltd v Kwong (No 2) [2012] NSWSC 1233 Coco v AN Clark (Engineers) Ltd [1969] RPC 41 Colbeam Palmer Limited v Stock Affiliates Pty Limited (1968) 122 CLR 25 Coles Supermarkets Australia Pty Ltd v FKP Limited [2008] FCA 1915 Commissioner for Corporate Affairs v Green [1978] VR 505 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32 Commonwealth of Australia v Amann Aviation Pty Limited (1991) 174 CLR 64; [1991] HCA 54 Concut Pty Ltd v Worrell (2000) 176 ALR 693; [2000] HCA 64 Corrs Pavey Whiting & Byrne v Collector of Customs (Vic) (1987) 14 FCR 434; [1987] FCA 266 Crown Melbourne Limited v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 260 CLR 1; [2016] HCA 26 Deeson Heavy Haulage Pty Ltd v Cox (2009) 82 IPR 521; [2009] QSC 277 Del Casale v Artedomus (Aust) Pty Limited (2007) 73 IPR 326; [2007] NSWCA 172 Dentown Pty Ltd v PWI Group Pty Ltd as trustee of The Australia No 1 Group Trust (2019) 141 ACSR 330; [2019] NSWSC 1032 Digital Cinema Network Pty Ltd v Omnilab Media Pty Limited (No 2) [2011] FCA 509 Digital Pulse Pty Limited v Harris (2002) 166 FLR 421; [2002] NSWSC 33 EagleBurgmann Australia Pty Ltd v Leabeater (2012) 219 IR 449; [2012] NSWSC 573 Faccenda Chicken Ltd v Fowler [1985] 1 All ER 724 Faccenda Chicken Ltd v Fowler [1987] Ch 117 Face It Ltd v Luk [2019] HKCFI 1416 First Conferences Services Ltd v Bracchi [2009] EWHC 2176 (Ch) Forkserve Pty Limited v Jack (2001) 19 ACLC 299; [2000] NSWSC 1064 Forkserve Pty Ltd v Pacchiarotta (2000) 50 IPR 74; [2000] NSWSC 979 Francis v South Sydney District Rugby League Football Club Ltd [2002] FCA 1306 Freedom Motors Australia Pty Limited v Vaupotic [2003] NSWSC 506 Fulton v Fulton [2014] NSWSC 619 Futuretronics.com.au Pty Limited v Graphix Labels Pty Ltd [2007] FCA 1621 Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd (2009) 81 IPR 1; [2009] FCAFC 2 Gold and Copper Resources Pty Ltd v Newcrest Operations Ltd [2013] NSWSC 281 Hart Security Australia Pty Ltd v Boucousis (2016) 339 ALR 659; [2016] NSWCA 307 Helensburgh Property Management Pty Ltd v Brady [2015] NSWSC 1861 Hospital Products Limited v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Huang v Union Standard International Group Pty Ltd [2020] NSWSC 400 Hydrocool Pty Limited v Hepburn (No 4) (2011) 279 ALR 646; [2011] FCA 495 In the matter of Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 IPC Global Pty Ltd v Pavetest Pty Ltd (No 4) (2017) 124 IPR 101; [2017] FCA 260 Isaac v Dargan Financial Pty Ltd atf The Dargan Financial Discretionary Trust (2018) 98 NSWLR 343; [2018] NSWCA 163 J & E Vella Pty Ltd v Hobson [2020] NSWCA 188 James v Faddoul [2006] NSWSC 1330 JLW (Vic) Pty Ltd v Tsiloglou [1994] 1 VR 237 John Fairfax Publications Pty Limited v Birt [2006] NSWSC 995 John Holland Pty Limited v Kellogg Brown & Root Pty Ltd [2015] NSWSC 451 Jones v Dunkel (1959) 101 CLR 298 KRM (Vic) Pty Ltd v Classicbet Pty Ltd [2019] NSWSC 1773 Landmark Underwriting Agency Pty Ltd v Kilborn [2006] NSWSC 1108 Leica Geosystems Pty Ltd v Koudstaal (No 3) (2014) 109 IPR 1; [2014] FCA 1129 Liberty Financial Pty Ltd v Scott (No 2) (2005) 11 VR 629; [2005] VSC 26 Lifeplan Australia Friendly Society Ltd v Woff (2016) 259 IR 384; [2016] FCA 248 LM Investment Management Ltd (receiver apptd) (in liq) v Drake [2019] QSC 281 LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Ltd [2003] NSWCA 74 Longden v Kenalda Nominees Pty Ltd [2003] VSCA 128 Lord Ashburton v Pape [1913] 2 Ch 469 Macquarie Developments Pty Ltd v Forrester [2005] NSWSC 674 Manildra Laboratories v Campbell [2009] NSWSC 987 Mastec Australia Pty Ltd v Trident Plastics (SA) Pty Ltd (No 3) [2018] FCA 99 Masterton Homes Pty Ltd v Palm Assets Pty Ltd (2009) 261 ALR 382; [2009] NSWCA 234 Megerditchian v Khatchadourian [2020] NSWCA 229 Mudgee Dolomite & Lime Pty Ltd v Murdoch; In the matter of Mudgee Dolomite & Lime Pty Ltd [2020] NSWSC 1510 Noranda Australia Ltd v Lachlan Resources NL (1988) 14 NSWLR 1 Norris v Kandiah [2007] NSWSC 1296 Nottingham University v Fishel [2000] IRLR 471; [2000] EWHC 2221 (QB) NRMA v Geeson (2001) 40 ACSR 1; [2001] NSWCA 343 Nuera (Australia) Pty Ltd v Bain [2005] NSWSC 24 O'Brien v Komesaroff (1982) 150 CLR 310; [1982] HCA 33 Optus Networks Pty Ltd v Telstra Corporation Ltd (2010) 265 ALR 281; [2010] FCAFC 21 Paino v Paino (2008) 40 Fam LR 96; [2008] NSWCA 276 Papas v Co [2018] NSWSC 1404 Peninsular Real Estate Ltd v Harris [1992] 2 NZLR 216 Phillips v Robab Pty Limited (2014) 110 IPR 184; [2014] NSWSC 1520 Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 165; [2001] HCA 31 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd (2003) 196 ALR 257; [2003] HCA 10 Plus One International Pty Ltd v Ching [2020] NSWSC 939 PMSI Group v Wilson [2003] NSWSC 263 Prestige Lifting Services Pty Ltd v Williams (2015) 333 ALR 674; [2015] FCA 1063 QBE Management Services (UK) Ltd v Dymoke [2012] EWHC 80 (QB) R v Byrnes (1995) 183 CLR 501; [1995] HCA 1 Re Octaviar Limited (receivers and managers appointed) (in liq) [2012] NSWSC 1027 Robb v Green [1895] 2 QB 315 Roger Bullivant Ltd v Ellis [1987] IRLR 491 Rosetex Company Pty Ltd v Licata (1994) 12 ACSR 779 Saltman Engineering Co Ltd v Campbell Engineering Co Ltd [1963] 3 All ER 413; [1948] 65 RPC 203 Sangha v Baxter (2009) 52 MVR 492; [2009] NSWCA 78 SBA Music Pty Ltd v Hall (No 3) [2015] FCA 1079 Schindler Lifts Australia Pty Ltd v Debelak (1989) 89 ALR 275 Smartways Logistics Holdings Pty Ltd v O'Sullivan [2020] NSWSC 189 Smith Kline & French Laboratories (Aust) Limited v Secretary, Department of Community Services and Health (1990) 22 FCR 73 State of New South Wales v Hunt (2014) 86 NSWLR 226; [2014] NSWCA 47 Stokes v Ragless [2019] SASCFC 31 Streetscape Projects (Australia) Pty Ltd v City of Sydney (2013) 295 ALR 760; [2013] NSWCA 2 SWM Financial Services Pty Ltd v Lloyd [2011] NSWSC 1108 Termite Resources NL (in liq) v Meadows (No 2) (2019) 370 ALR 191; [2019] FCA 354 Terrapin Ltd v Builders' Supply Co (Hayes) Ltd [1967] RPC 375 The Change Group International PLC v City Exchange Mart Pty Ltd [2013] FCA 1048 The Owners Strata Plan SP 69567 v Baseline Constructions Pty Ltd [2012] NSWSC 502 United Petroleum Australia Pty Ltd v Herbert Smith Freehills (a firm) (2018) 128 ACSR 324; [2018] VSC 347 United States Surgical Corporation v Hospital Products International Pty Ltd [1983] 2 NSWLR 157 University of Western Australia v Gray (2009) 179 FCR 346; [2009] FCAFC 116 Vanguard Financial Planners Pty Ltd v Ale (2018) 354 ALR 711; [2018] NSWSC 314 Vasco Investment Managers Limited v Morgan Stanley Australia Limited (2014) 108 IPR 52; [2014] VSC 455 Vestergaard Frandsen A/S v Bestnet Europe Limited [2013] 1 WLR 1556; [2013] UKSC 31 Victoria University of Technology v Wilson [2004] VSC 33 Warner v Hung, in the matter of Bellpac Pty Limited (Receivers and Managers Appointed) (In Liquidation) (No 2) (2011) 297 ALR 56; [2011] FCA 1123 Weldon & Co v Harbinson [2000] NSWSC 272 Woolworths Ltd v Olson (2004) 184 FLR 121; [2004] NSWSC 849 Zomojo Pty Ltd v Hurd (No 2) (2012) 299 ALR 621; [2012] FCA 1458 Texts Cited: G E Dal Point, Equity and Trusts in Australia (7th ed, 2019, Lawbook Co) G E Dal Pont, Law of Confidentiality (2014, LexisNexis) J D Heydon, Cross on Evidence (2020, LexisNexis) J D Heydon, Heydon on Contract (2019, Lawbook Co) J D Heydon, M J Leeming and P G Turner, Meagher, Gummow and Lehane's Equity Doctrines and Remedies (5th ed, 2015, LexisNexis) R P Austin and I M Ramsay, Ford, Austin & Ramsay's Principles of Corporations Law (2020, LexisNexis) R P Austin, H A J Ford and I M Ramsay, Company Directors: Principles of Law & Corporate Governance (2005, LexisNexis) Category: Principal judgment Parties: Plus One International Pty Ltd trading as Plus One Advisory and Plus One Education (First Plaintiff) Plus One Migration Pty Ltd (Second Plaintiff) (Paris) Yiu Tung Ching (First Defendant) (Joy) Jieyi Lu (Second Defendant) Representation: Counsel: D Dinnen (Plaintiffs) A E Hopkins (Defendants)