Digital Central Australia (Assets) Pty Ltd v Stefanovski (No 2)

Digital Central Australia (Assets) Pty Ltd sued Mr Stefanovski, Ms Clark, Ant Printing, TK Sign Installations, and a company trading as ARES. The dispute involved the misuse of confidential information and breach of contract by Mr Stefanovski and others. They were alleged to have used the applicant’s confidential information to compete with it after the termination of a franchise agreement. The court had to determine the scope of protection for confidential information under contract and equity, the enforceability of explicit contractual restraints, and the adequacy of damages for breach of contract and equitable obligations.

The court held that the confidentiality obligations under the franchise agreement were clear and enforceable. The use of confidential information to compete with the applicant constituted a breach of both contractual and equitable duties. The explicit contractual restraints were enforceable, and the scope of protection extended to the specific information and businesses identified. The court found that damages for breach of contract and equitable compensation were inadequate to protect the applicant’s interests. Therefore, injunctive relief was appropriate to prevent further misuse of confidential information and to restrain the respondents from competing with the applicant in certain areas.

The court ordered Mr Stefanovski, Ms Clark, and TK Sign Installations to pay damages and equitable compensation to the applicant. They were also restrained from using the applicant’s confidential information and from operating competing businesses in specified areas until certain dates. Ant Printing was ordered to pay damages and equitable compensation and was restrained from using confidential information. The application against the fourth respondent was dismissed. The court reserved costs pending further submissions.