Coffee and a Case Note

Agha v Devine Real Estate [2021] NSWCA 29


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“Don’t steal my confidential information!”


___

A, a former shareholder in and employee of R, ceased being a shareholder, quit, and set up a competing business in the same industry.

A lost a set of proceedings at first, and appealed.

Before leaving:
- A arranged for another employee of R to send A R’s client lists: [26]
- On the day A gave notice they were intending to set up a competing business, a person using A’s password-protected username altered 905 contacts in R’s database by altering a digit or digits for each phone number: [27]

At first instance, each was found to be a breach of confidence attributable to A.

The inference was available that A was responsible for the sabotage, especially as A did not cross-examine R’s witness or give evidence: [68]

A sought to appeal this finding, but failed: [71]

The client lists were confidential and not part of A’s knowhow (as shown by A causing them to be emailed to their personal address). The conduct was restrained by contract and also by equity: [132]

The fact that R put the confidential information into affidavit evidence did not place it in the public domain, and so did not release A from duties of confidence: [134], [139]

The appeal failed. (Apart from some issues like the form of declarations: [145])

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Coffee and a Case NoteBy James d'Apice

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