Andrews Advertising Pty Ltd v David Andrews [2014] NSWSC 318

Supreme Court New South Wales

Medium Neutral Citation: Andrews Advertising Pty Ltd v David Andrews [2014] NSWSC 318 Hearing dates: 3 - 6 February 2014 Decision date: 25 March 2014 Jurisdiction: Equity Division Before: Darke J Decision: Second and fifth defendants are liable to account for benefits obtained as a result of breaches of fiduciary duty by second defendant. Second defendant is liable to pay damages for breach of contract, and to reimburse certain expenses. Catchwords: EQUITY - fiduciary duties - senior employee of advertising agency - diversion of business - obtaining of personal benefit

EQUITY - breach of fiduciary duties - accessorial liability - "second limb" of Barnes v Addy - knowing assistance - whether assistant had requisite knowledge

REMEDIES - account of profits - benefits received by defaulting fiduciary and by knowing assistant

CONTRACT - contracts of employment - restraint of trade clause - restraint preventing involvement in other advertising agency business - breach of restraint - whether restraint enforceable - s4 Restraints of Trade Act (NSW)

CORPORATIONS - s183 Corporations Act - employee - improper use of information - wrongful use of information not established Legislation Cited: Corporations Act 2001 (Cth), s183 Restraints of Trade Act 1976 (NSW), s4 Cases Cited: Barnes v Addy (1874) LR 9 Ch App 244 Cactus Imaging Pty Ltd v Peters (2006) 71 NSWLR 9; [2006] NSWSC 717 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 Concut Pty Ltd v Worrell [2000] HCA 64 Del Casale v Artedomus (Aust) Pty Ltd [2007] NSWCA 172 Farah Constructions Pty Limited v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Hanna v OAMPS Insurance Brokers Ltd [2010] NSWCA 267 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Koops Martin Financial Services Pty Ltd v Reeves [2006] NSWSC 449 Lindner v Murdock's Garage (1950) 83 CLR 628; [1950] HCA 48 Manildra Laboratories Pty Ltd v Campbell [2009] NSWSC 987 Metcash Ltd v Jardim (No. 3) [2010] NSWSC 1096 Michael Wilson and Partners Ltd v Nicholls (2011) 244 CLR 427; [2011] HCA 48 Miles v Genesys Wealth Advisers Ltd [2009] NSWCA 25 Orton v Melman [1981] 1 NSWLR 583 Sellars v Adelaide Petroleum NL (1994) 179 CLR 332; [1994] HCA 4 Stenhouse Australia Ltd v Phillips [1974] AC 391 Tullett Prebon (Australia) Pty Ltd v Purcell [2008] NSWSC 852 Warman International Ltd v Dwyer (1995) 182 CLR 544; [1995] HCA 18 Woolworths Ltd v Olson [2004] NSWCA 372 Texts Cited: The Hon William Gummow AC, "Knowing assistance" (2013) 87 ALJ 311 Category: Principal judgment Parties: Andrews Advertising Pty Limited (Plaintiff)