AIIB Pty Ltd v Beard

AIIB Pty Ltd brought an action against Beard and two other defendants in the Federal Court of Australia, seeking damages for breaches of contract and equity. The plaintiff, AIIB, alleged that Beard, the first defendant, and his company, the second defendant, had breached contractual and equitable obligations of confidentiality and non-solicitation. The plaintiff claimed that Beard, having been employed by AIIB, subsequently engaged in activities that were in breach of the agreements he had entered into with AIIB. AIIB further alleged that the third defendant, a company, was liable as the principal of the first and second defendants, or otherwise.

The court was required to determine whether contracts had been formed between AIIB and Beard or between AIIB and the second defendant, and whether Beard or the second defendant had breached the confidentiality and non-solicitation provisions of those contracts. The court also had to decide whether Beard or the second defendant owed an equitable obligation of confidence to AIIB, and whether that obligation had been breached. Finally, the court had to determine whether the third defendant was liable as the principal of the first or second defendant or otherwise.

The court held that a contract had been formed between AIIB and the second defendant, and that Beard had breached the confidentiality and non-solicitation provisions of that contract. The court found that Beard, as an individual, owed an equitable obligation of confidence to AIIB, which he had breached. The court held that the third defendant was not liable as the principal of the first or second defendant, as the relevant acts were outside the scope of the agency and section 917B of the Corporations Act was inapplicable.

The court awarded damages to AIIB against the first and second defendants for breach of contract and equity, and dismissed the claim against the third defendant. The precise amount of damages was to be determined at a later date.