Deeson Heavy Haulage Pty Ltd v Cox

Deeson Heavy Haulage Pty Ltd sought relief against Cox and others, alleging breaches of duties of good faith and confidence by Cox, who solicited work for a competitor while employed by Deeson. The Federal Circuit and Family Court of Australia was tasked with determining whether Cox's actions constituted a breach of his employment contract, and if Deeson was entitled to compensation. The court had to assess whether the duties of good faith and confidence owed by Cox to Deeson survived the termination of his employment and whether Cox's actions were sufficiently connected to the suit to invoke the doctrine of clean hands.

The court found that Cox had breached his duty of good faith by soliciting work for a competitor while still employed by Deeson. It was held that such duties do indeed survive the termination of the employment contract. The court also determined that Cox's conduct was sufficiently connected to the suit, thus allowing the application of the doctrine of clean hands. Regarding the measure of liability, the court applied the "head start" or "springboard concept," which recognises that the misuse of confidential information can provide a "head start" in the market, allowing for a more comprehensive measure of damages.

Deeson Heavy Haulage Pty Ltd was awarded judgment against Cox and others, receiving compensation of $12,120 plus interest of $1,684.68. Cox, as the first defendant, was awarded $4,760 plus interest of $718.76 against Deeson on his counterclaim. The court granted both parties the liberty to apply within seven days for any further orders.