Asia Pacific Telecommunications Ltd v Optus Networks Pty Ltd

The plaintiffs, Asia Pacific Telecommunications Ltd, sought to prevent the defendant's solicitors from continuing to act for the defendant on the basis that they had been involved in preparing confidential information for the plaintiffs. The case was heard by the Federal Court of Australia. The plaintiffs argued that the defendant's solicitors had breached the terms of a confidentiality undertaking and that their involvement in the proceedings posed a risk of the disclosure of confidential information. The defendant's solicitors argued that they had put in place an information barrier, known as a 'Chinese Wall', to prevent the disclosure of any confidential information and that they had given an undertaking that they would not be involved in the proceedings.

The court had to determine whether the defendant's solicitors were bound by the confidentiality undertaking and whether they had breached it by acting for the defendant in the proceedings. The court also had to consider whether the 'Chinese Wall' was sufficient to prevent the disclosure of any confidential information and whether the solicitors' involvement in the proceedings posed a real risk of such disclosure. The court considered the evidence of the solicitors and the plaintiffs, as well as the terms of the confidentiality undertaking.

The court found that the defendant's solicitors were bound by the confidentiality undertaking and that they had breached it by acting for the defendant in the proceedings. The court held that the 'Chinese Wall' was not sufficient to prevent the disclosure of confidential information and that the solicitors' involvement in the proceedings posed a real risk of such disclosure. The court dismissed the application to restrain the solicitors from acting for the defendant but ordered that they be bound by the terms of the confidentiality undertaking and that they take all reasonable steps to prevent the disclosure of any confidential information. The court also ordered that the solicitors provide a written assurance that they would not be involved in the proceedings and that they would not disclose any confidential information.