Central Innovation Pty Ltd v Garner (No 4)

The case of Central Innovation Pty Ltd v Garner (No 4) involved a dispute between two companies and an individual, where the companies alleged that the individual had breached contractual terms, equitable fiduciary obligations, or statutory obligations under the Corporations Act 2001. The individual, Mr Garner, had been employed by the first applicant and had access to confidential customer databases of the second applicant. After being made redundant, Mr Garner began working for a competitor, and it was alleged that he took and used the confidential information in breach of his contractual obligations. The court was required to determine whether Mr Garner had breached any contractual, equitable, or statutory obligations, and if so, the quantum of any loss caused.

The court held that Mr Garner was employed by the first applicant and was bound by the terms of his employment contract, which prohibited the use of confidential information. The court found that Mr Garner did not enter into a new contract in March 2011 as he claimed, but rather remained bound by his original contract. The court found that Mr Garner had breached his contractual obligations by using confidential information, which resulted in 36 customers switching to his new employer. The court ordered that Mr Garner pay damages and pre-judgment interest, to be calculated by reference to expert reports, and also ordered that he pay the applicants’ costs. The parties were directed to confer and submit agreed or competing orders for the remaining relief sought by the applicants, and the case was listed for a case management hearing.