Ezystay Systems Pty Ltd v Link 2 Pty Ltd [2015] NSWSC 1105

Supreme Court New South Wales

Medium Neutral Citation: Ezystay Systems Pty Ltd v Link 2 Pty Ltd [2015] NSWSC 1105 Hearing dates: 30 April 2015; 1, 4, 5, 6, 7 and 14 May 2015 Decision date: 10 August 2015 Jurisdiction: Equity Division Before: Bergin CJ in Eq Decision: See [246]-[247] Catchwords: DEEDS – construction of clauses in Deed terminating commercial relationship – where obligation to return hard copies and delete electronic copies of documents – whether obligation to return documents created from copying parts of documents.

CONFIDENTIAL INFORMATION – whether plaintiffs' business manuals and other documents confidential – whether software and software manual confidential – whether confidential information copied and used by defendants in business competing with plaintiffs - whether instructions to computer consultant amounted to copying the plaintiffs' software.

DIRECTORS – duties owed to companies – where director of plaintiffs used plaintiffs' documents and information to set up a business in competition with the plaintiffs whilst a director of the plaintiffs – whether breach of statutory and fiduciary duties. Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: Aloha Shangri-La Atlas Cruises Pty Ltd v Gaven [1970] Qd R 438 Amway Corporation v Eurway International Limited [1974] RPC 82 Chan v Zacharia (1984) 154 CLR 178 Coco v AN Clark (Engineers) Ltd [1969] RPC 41 Commercial Plastics Ltd v Vincent [1965] 1 QB 623 Del Casale v Artedomus (Aust) Pty Ltd (2007) 73 IPR 326 Drake Personnel Ltd v Beddison [1979] VR 13 Electricity Generation Corp v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 EMI Songs Australia Pty Limited v Larrikin Music Publishing Pty Limited [2011] FCAFC 47; (2011) 191 FCR 444 First Conferences Services Ltd v Bracchi [2009] EWHC 2176 (Ch) H&R Block Ltd v Sanott [1976] 1 NZLR 213 Lancashire Fires Ltd v SA Lyons & Co Ltd [1996] FSR 629 Makita (Australia) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705 Marshall v Prescott [2015] NSWCA 110 O'Brien v Komesaroff (1982) 150 CLR 310 Wright v Gasweld Pty Limited (1991) 22 NSWLR 317 Category: Principal judgment Parties: Ezystay Systems Pty Ltd (1st Plaintiff) Ezystay Properties Pty Ltd (2nd Plaintiff) Sleeping Operations Pty Ltd (3rd Plaintiff) Sleeping with the Enemy Pty Ltd (4th Plaintiff) Sleeping in Australia Pty Ltd (5th Plaintiff) Link 2 Pty Ltd (1st Defendant) Riches Commercial Pty Limited (2nd Defendant) Gregory Moore Riches (3rd Defendant) Representation: Counsel: JC Kelly SC (Plaintiffs) J Lazarus/S Lipp (Defendants)