The Property Investors Alliance Pty Ltd t/as PIA v Qi [2018] NSWSC 977

Supreme Court New South Wales

Medium Neutral Citation: The Property Investors Alliance Pty Ltd t/as PIA v Qi [2018] NSWSC 977 Hearing dates: 28 & 29 May 2018; supplementary written submissions 11 and 18 June 2018 Decision date: 27 June 2018 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Plaintiff to elect whether to seek equitable compensation or an account of profits Catchwords: EQUITY — fiduciary duties — fiduciary relationships — employee and employer — where employees established company in competition to compete with employer during their employment — where employees diverted employer's clients to that company — whether employees bound to direct opportunities to employer

EQUITY — fiduciary duties — scope — proscriptive duties — disclosure — whether employees obliged to direct opportunities to employer— where disclosure of opportunity was the only means by which fiduciary could obtain fully informed consent

EQUITY — equitable remedies — calculation of loss suffered by employer and profit gained by fiduciary —election between equitable compensation and account of profits Legislation Cited: Corporations Act 2001 (Cth) Restraints of Trade Act 1976 (NSW) Cases Cited: AMP Services Ltd v Manning (No 2) [2007] FCA 82 Apand Pty Ltd v Kettle Chip Co Pty Ltd (1999) 88 FCR 568 Armory v Delamirie (1722) 1 Stra 505; 93 ER 664 Attorney-General (NSW); Ex rel Corporate Affairs v Australian Softwood Forest Pty Ltd [1979] 2 NSWLR 73 Breen v Williams [1996] HCA 57; (1996) 186 CLR 71 Canson Enterprises Ltd v Boughton and Co [1991] 3 SCR 534 Colbeam Palmer Ltd v Stock Affiliates Pty Ltd (1968) 122 CLR 25 Commercial Plastics Ltd v Vincent [1965] 1 QB 623 Coope v LCM Litigation Fund Pty Ltd [2016] NSWCA 37 Curro v Beyond Productions Pty Ltd (1993) 30 NSWLR 337 Dart Industries Inc v Decor Corporation Pty Ltd (1993) 179 CLR 101 Digital Pulse Pty Ltd v Harris [2002] NSWSC 33 Fitzwood Pty Ltd v Unique Goal Pty Ltd (in liq) [2001] FCA 1628 General Tire & Rubber Co v Firestone Tire & Rubber Co Ltd [1975] 1 WLR 819 Grimaldi v Chameleon Mining (No 2) 200 FCR 296 HML v The Queen [2008] HCA 16; (2008) 235 CLR 334 Harris v Digital Pulse Pty Ltd [2003] NSWCA 10 Herbert Morris Ltd v Saxelby [1916] 1 AC 688 Hill v Rose [1990] VR 129 Hospital Products Ltd v United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 Houghton v Immer (No. 155) Pty Limited (1997) 44 NSWLR 46 Jones v Dunkel (1959) 101 CLR 298 Kone Elevators Pty Ltd v McNay (1997) ATPR 41-564 Koops Martin Financial Services Pty Ltd v Reeves [2006] NSWSC 449 Lindner v Murdock's Garage (1950) 83 CLR 628 My Kinda Town Ltd v Soll (1982) FSR 147 Nocton v Lord Ashburton [1914] AC 932 Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd [1894] AC 535 Orton v Melman (1981) 1 NSWLR 583 OXS Pty Ltd v Sydney Harbour Foreshore Authority and Minister for Planning and Environment [2014] NSWSC 1284 Pilmer v Duke Group Ltd (in liq) [2001] HCA 31; (2001) 207 CLR 165 Re Dawson (1966) 84 WN (Pt 1) (NSW) 399 Smith v Smith [2017] NSWSC 408 Stacks Taree v Marshall (No. 2) [2010] NSWSC 77 Tank Lining Corp v Dunlop Industries Ltd (1982) 140 DLR (3d) 659 Tullett Prebon (Australia) Pty Ltd v Purcell [2008] NSWSC 852 Vandervell Products v McLeod [1957] RPC 185 V-Flow Pty Ltd v Holyoake Industries (Vic) Pty Ltd [2013] FCAFC 16 Warman International Ltd v Dwyer [1995] HCA 18; (1995) 182 CLR 544 Woolworths Ltd v Olson [2004] NSWCA 372 Wright v Gasweld Pty Ltd (1991) 22 NSWLR 317 Texts Cited: Dal Pont, Equity and Trusts in Australia (5th ed, 2011) Meagher, Gummow and Lehane, Equity: Doctrines & Remedies (4th ed) W M C Gummow, "Compensation for Breach of Fiduciary Duty" in T G Youdan, Equity, Fiduciaries and Trusts (1989, Carswell, The Law Book Company) Category: Principal judgment Parties: The Property Investors Alliance Pty Ltd trading as PIA (Plaintiff) Yang Qi (First Defendant) Zhengyu Tong (Second Defendant) Rental Master Pty Ltd trading as Rental Master (Third Defendant) Representation: Counsel: T J Dixon (Plaintiff) H Grace (Defendants)