Chaffey Services Pty Ltd as trustee for Cataby Services Trust, T/A Cataby Services v Doble [No 4]

This case involved a dispute between the plaintiff, Chaffey Services Pty Ltd as trustee for Cataby Services Trust, and its former employee, Michael Paul Doble (the first defendant), and his company, Kirahnley Pty Ltd (the second defendant). The plaintiff alleged that Mr. Doble breached fiduciary duties, statutory duties, and an equitable obligation of confidence by taking preparatory steps to compete with the plaintiff while still employed by it. The dispute raised the question of the permissible scope of an employee's activities in preparing for future competition with an employer and whether Mr. Doble's conduct crossed the line. The plaintiff sought equitable compensation for breach of fiduciary duty, equitable compensation for breach of the equitable duty of confidence, and statutory compensation, or alternatively an account of profits. The court found that Mr. Doble owed fiduciary obligations in relation to the preparation of quotes and invoices for Tronox and breached those obligations by causing Kirahnley to quote for work instead of submitting quotes on the plaintiff's behalf. Additionally, Mr. Doble misused confidential information about the plaintiff's turnover for the purposes of his application for finance, which constituted a breach of the equitable duty of confidence and statutory duties. The court held that while Mr. Doble did not owe any duty that restricted his freedom to secure the VMS contract, the plaintiff was entitled to compensation for the losses flowing from the breaches. The plaintiff was awarded equitable compensation for breach of fiduciary duty and the equitable duty of confidence, and a compensation order for statutory breaches. The court concluded that the defendants' positive defences were not established and that the plaintiff was entitled to elect between the alternate forms of relief available to it.