Smartways Logistics Holdings Pty Ltd v O’Sullivan [2020] NSWSC 189

Supreme Court New South Wales

Medium Neutral Citation: Smartways Logistics Holdings Pty Ltd v O'Sullivan [2020] NSWSC 189 Hearing dates: 27 June 2019 Decision date: 06 March 2020 Jurisdiction: Equity Before: Henry J Decision: See paragraph [231] Catchwords: EQUITY – breach of confidence – necessary quality of confidence – employment – lists of client and contractor driver contact details found to be confidential – business method information, including shipping rates charged to clients and driver management tools, found to be confidential

EQUITY– conduct constituting breach of confidence – access and use of confidential information to set up and conduct rival business during employment – contact with clients and contractor drivers using confidential contact details after employment – use of confidential shipping rates after employment – diversion of a business opportunity to a third party that would have been open to employer

EQUITY – equitable remedies – declaratory relief appropriate – injunctive relief granted in limited terms – delivery up and deletion orders granted

COSTS – gross sum costs order – where defendants have stopped contesting the proceedings – where defendants are in default of orders - where defendants have failed to take active steps in the proceedings – further discount for duplication of work Legislation Cited: Civil Procedure Act 2005 (NSW), ss 98(4)(c), 101(4) Uniform Civil Procedure Rules 2005 (NSW), rr 36.7, 36.4(3) Cases Cited: AIIB Pty Ltd v Beard [2009] NSWSC 1001 Apotex Pty Ltd v Les Laboratoires Servier (No 2) [2012] FCA 748 Bass v Permanent Trustee Co Ltd (1999) 198 CLR 334; [1999] HCA 9 Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119 Bobb v Wombat Securities Pty Ltd (No 2) [2013] NSWSC 863 Church of the Foursquare Gospel (Australia) Limited v New Hope Church Swansea Inc [2019] NSWSC 519 Corrs Pavey Whiting & Byrne v Collector of Customs (1987) 14 FCR 434; [1987] FCA 266 CSL Limited v Glaxosmithkline Australia Pty Ltd (2006) 70 IPR 128; [2006] FCA 1301 Del Casale v Artedomus (Aust) Pty Ltd (2007) 165 IR 148; [2007] NSWCA 172 Digital Pulse Pty Ltd v Harris and Others (2002) 166 FLR 421; [2002] NSWSC 33 Doppstadt Australia Pty Ltd v Lovick & Son Developments Pty Ltd [2014] NSWCA 158 Drummond and Rosen Pty Ltd v Easey & Ors (No 2) [2009] NSWCA 331 E Co v Q (No 5) [2019] NSWSC 844 E Worsley & Co Ltd v Cooper [1939] 1 All ER 290 EB 9 & 10 Pty Ltd v Owners – Strata Plan 934 (2018) 98 NSWLR 889; [2018] NSWCA 288 Fewin Pty Ltd v Burke (No 3) [2017] FCA 693 Forster v Jododex Australia Pty Ltd (1972) 127 CLR 421; [1972] HCA 61 Hadid v Lenfest Communications Inc [2000] FCA 628 Hamod v State of New South Wales [2011] NSWCA 375 Harrison v Schipp (2002) 54 NSWLR 738; [2002] NSWCA 213 Idoport Pty Ltd v National Australia Bank Ltd [2007] NSWSC 23 IMF (Australia) Ltd v Sons of Gwalia Ltd (administrator appointed) (2004) 211 ALR 231; [2004] FCA 1390 Isaac v Dargan Financial Pty Ltd (2018) 98 NSWLR 343; [2018] NSWCA 163 James v Australian and New Zealand Banking Group Limited [2016] NSWSC 833 Magic Menu Systems Pty Ltd v AFA Facilitation Pty Ltd (1997) 72 FCR 261 Microsoft Corp v Jiang [2003] FCA 101 Mid-City Skin Cancer and Laser Centre Pty Ltd v Zahedi-Anarak (2006) 67 NSWLR 569; [2006] NSWSC 844 National Roads and Motorists' Assn Ltd v Geeson (2001) 40 ACSR 1; [2001] NSWCA 343 NP Generations Pty Ltd v Feneley (2001) 80 SASR 151; [2001] SASC 185 Prestige Lifting Services Pty Ltd v Williams [2015] FCA 1063 Ramsey v Annesley College (No 2) [2013] SASC 145 Robb v Green [1895] 2 QB 1 Sony Computer Entertainment Australia Pty Ltd v Carey [2003] FCA 605 Sony Entertainment (Australia) Ltd v Smith (2005) 215 ALR 788; [2005] FCA 228 Telstra Corporation Ltd v First Netcom Pty Ltd (1997) 78 FCR 132 Wright v Gasweld (1991) 22 NSWLR 317 Zetting v Muller [2017] NSWSC 659 Texts Cited: R Dean, The Law of Trade Secrets, (3rd ed, 2018, Lawbook Co) Category: Principal judgment Parties: Smartways Logistics Holdings Pty Ltd (plaintiff) Terence O'Sullivan (first defendant) Kaitlyn Leahey (second defendant) Representation: Counsel: P Flynn (plaintiff)