DISTRICT COURT OF QUEENSLAND
CITATION:
Champions Ride Days Pty Ltd v McFarlane & Anor [2019] QDC 236
PARTIES:
CHAMPIONS RIDE DAYS PTY LTD
ACN 106 662 462
(plaintiff)v
JOSHUA PAUL McFARLANE
(first defendant)RECREATION AND COMPETITIVE EVENTS RESOURCES & SERVICES PTY LTD
ACN 098 088 610(second defendant)
FILE NO/S:
27 of 2018 (Beenleigh Registry)
DIVISION:
Civil
PROCEEDING:
Trial
DELIVERED ON:
29 November 2019
DELIVERED AT:
Brisbane
HEARING DATE:
11, 12 and 13 November 2019
JUDGE:
Barlow QC DCJ
ORDER:
See appendix
CATCHWORDS:
DAMAGES – MEASURE AND REMOTENESS OF DAMAGES IN ACTIONS FOR BREACH OF CONTRACT – REMOTENESS AND CAUSATION – LOSS OF PROFITS – where plaintiff claims unauthorised use of confidential information by first defendant enabled second defendant to enter into contracts for the supply of goods and services that the plaintiff would have otherwise supplied – where defendants contend the loss of contracts for the supply of goods and services by the plaintiff was due to unrelated issues – whether loss suffered by plaintiff – whether loss suffered due to breach of contact
EQUITY – EQUITABLE REMEDIES – EQUITABLE COMPENSATION – where equitable duties owed by the defendants to the plaintiff – whether equitable compensation is available
INTELLECTUAL PROPERTY – CONFIDENTIAL INFORMATION – INFORMATION PROTECTED – where first defendant had signed a “Confidentiality Agreement” with the plaintiff – whether information was confidential
INTELLECTUAL PROPERTY – CONFIDENTIAL INFORMATION – OBLIGATION OF CONFIDENTIALITY – whether defendants owed obligations of confidentiality to plaintiff – whether defendants breached obligations of confidentiality
INTELLECTUAL PROPERTY – CONFIDENTIAL INFORMATION – USE OF INFORMATION – where first defendant sent confidential information to second defendant – whether second defendant used the information to enter into contracts for supply of goods or services
INTELLECTUAL PROPERTY – CONFIDENTIAL INFORMATION – REMEDIES – EQUITABLE COMPENSATION OR ACCOUNTS OF PROFITS – where plaintiff elected for equitable compensation – whether equitable compensation is available
DAMAGES – GENERAL PRINCIPLES – NOMINAL DAMAGES – where defendants contended no actual loss was suffered by the plaintiff – whether nominal damages available – whether nominal damages sufficient
Coco v A N Clark (Engineers) Ltd (1968) 1A IPR 587, applied
Giller v Procopets (No 2) (2008) 24 VR 1, applied
Jones v Dunkel (1959) 101 CLR 298, applied
Link 2 Pty Ltd v Ezystay Systems Pty Ltd [2016] NSWCA 317, applied
Saltman Engineering Co Ltd v Campbell Engineering Co Ltd [1948] 65 RPC 203, considered
Seager v Copydex Ltd [1967] 2 All ER 718, applied
Seager v Copydex Ltd (No 2) [1969] 2 All ER 415, considered
Talbot v General Television Corporation Pty Ltd [1980] VR 224, applied
Wheatley v Bell [1982] 2 NSWLR 544, applied
COUNSEL:
B Vass for the plaintiff
M Wilson for the first defendant (direct brief)
AJ Greinke for the second defendant
SOLICITORS:
McMillan Criminal Law for the plaintiff
Cranston McEachern Lawyers for the second defendant
Introduction
The…
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- Case
- [2019] QDC 236
- Decision Date
CaseChat Overview and Summary
The legal issues that the court had to decide included the determination of the measure and remoteness of damages in the context of breach of contract, the nature and extent of the loss suffered by the plaintiff, and whether the loss was caused by the breach of contract. Additionally, the court had to consider whether the loss of profits was a direct result of the defendants' actions and whether the loss was too remote to be recoverable. The court also examined whether the defendants owed equitable duties to the plaintiff and if so, whether equitable compensation was an appropriate remedy. Furthermore, the court needed to determine if the information in question was protected and confidential under the Confidentiality Agreement and if the defendants had breached their obligations of confidentiality.
The court found that the plaintiff had indeed suffered a loss due to the unauthorised use of confidential information by the first defendant, which facilitated the second defendant's entry into contracts for the supply of goods and services. The court held that the loss was a direct consequence of the breach of contract and not due to unrelated issues. The court held that the plaintiff was entitled to equitable compensation for the breach of the equitable duties owed by the defendants. The court also determined that the information was protected and confidential under the Confidentiality Agreement and that the defendants had breached their obligations of confidentiality by disclosing the information to the second defendant. The court found that equitable compensation was an appropriate remedy in this case, as the plaintiff had elected for it instead of an account of profits. The court also concluded that the plaintiff was entitled to nominal damages, as the defendants had contended that no actual loss was suffered by the plaintiff.
The court ordered that the first defendant pay equitable compensation to the plaintiff and that the second defendant pay nominal damages to the plaintiff. The court also ordered that the first and second defendants pay the plaintiff's costs of the proceedings.
Orders
Orders of the court
See appendix
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
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