Doble v Chaffey Services Pty Ltd

Case [2025] WASCA 3


JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

TITLE OF COURT  :   THE COURT OF APPEAL (WA)

CITATION:   DOBLE -v- CHAFFEY SERVICES PTY LTD  [2025] WASCA 3

CORAM:   BUSS P

MITCHELL JA

VAUGHAN JA

HEARD:   4 NOVEMBER 2024

DELIVERED          :   16 JANUARY 2025

FILE NO/S:   CACV 115 of 2023

BETWEEN:   MICHAEL PAUL DOBLE

First Appellant

KIRAHNLEY PTY LTD T/A KTR SERVICES

Second Appellant

AND

CHAFFEY SERVICES PTY LTD AS TRUSTEE FOR CATABY SERVICES TRUST, T/A CATABY SERVICES

Respondent

ON APPEAL FROM:

Jurisdiction              :   SUPREME COURT OF WESTERN AUSTRALIA

Coram:   TOTTLE J

Citation: CHAFFEY SERVICES PTY LTD AS TRUSTEE FOR CATABY SERVICES TRUST, T/A CATABY SERVICES -v- DOBLE [No 4] [2023] WASC 361

File Number            :   CIV 1854 of 2020


Catchwords:

Corporations - Where appellant found liable for breach of equitable duty of confidence and statutory duties owed as an employee under the Corporations Act 2001 (Cth) by using information relating to the turnover of his employer for the purposes of obtaining finance to establish his own company - Where appellant found liable for breach of fiduciary duty and statutory duties owed as an employee under the Corporations Act by diverting work from his employer to his own company - Whether trial judge erred in finding appellant improperly used his position to gain advantage for himself or someone else under s 182 and s 183 of the Corporations Act - Whether turnover information derived from information that was not confidential was subject to a duty of confidence - Effect of sale of business on confidentiality obligation - Whether use of information was improper within the meaning of s 182 and s 183 of the Corporations Act - Whether compensation may be awarded under s 1317H of the Corporations Act by reference to the profits made by a person resulting from contravention where claimant has not proved they suffered any loss resulting from the contravention

Legislation:

Corporations Act 2001 (Cth), s 182, s 183, s 1317H

Result:

Appeal dismissed

Category:    B

Representation:

Counsel:

First Appellant : D H Solomon
Second Appellant : D H Solomon
Respondent : B Kremer SC

Solicitors:

First Appellant : Solomon Brothers
Second Appellant : Solomon Brothers
Respondent : Bennett

Case(s) referred to in decision(s):

Ansell Rubber Co Pty Ltd v Allied Rubber Industries Pty Ltd [1967] VR 37

Bents Brewery Co Ltd v Hogan [1945] 2 All ER 570

Capitalink Pty Ltd v Withnall [2024] NSWCA 172

Chew v The Queen (1992) 173 CLR 626

Commonwealth v John Fairfax & Sons Ltd (1980) 147 CLR 39

Dawson v Westpac Banking Corporation (1991) 66 ALJR 94

Doble v Chaffey Services Pty Ltd [2023] WASCA 180

Douglas v Hello! Ltd [No 3] [2005] EWCA Civ 595; [2006] QB 125

Douglas v Hello! Ltd [No 3] [2007] UKHL 21; (2008) AC 1

Elecon Australia Pty Ltd v PIV Drives GmbH [2010] FCAFC 56; (2010) 93 IPR 174

Faccenda Chicken Ltd v Fowler [1987] Ch 117

Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230…

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Doble v Chaffey Services Pty Ltd [2025] WASCA 3
Case
[2025] WASCA 3
Decision Date

CaseChat Overview and Summary

The case of Doble v Chaffey Services Pty Ltd involved the appellant, Mr. Doble, who was found liable for breaching both equitable duties of confidence and statutory duties owed as an employee under the Corporations Act 2001 (Cth). The dispute centered on Mr. Doble's use of information concerning the turnover of his employer, Chaffey Services Pty Ltd, to secure finance for his own company. Additionally, he was held liable for diverting work from his employer to his own business. The primary legal issues that the court had to address were whether the trial judge was correct in determining that Mr. Doble improperly used his position to gain an advantage for himself or someone else, as per sections 182 and 183 of the Corporations Act, and whether the turnover information derived from non-confidential sources was subject to a duty of confidence.

The court examined whether Mr. Doble's actions constituted an improper use of his position under sections 182 and 183 of the Corporations Act. It was found that Mr. Doble's use of turnover information for his own financial gain was indeed an improper use of his position, despite the information being derived from non-confidential sources. The court also considered the effect of the sale of the business on the confidentiality obligation and concluded that even though the business was sold, the obligation to maintain confidentiality persisted. The court further deliberated on whether Mr. Doble's use of information was improper within the meaning of sections 182 and 183 of the Corporations Act and determined that it was. Finally, the court addressed the issue of compensation under section 1317H of the Corporations Act, holding that compensation could be awarded by reference to the profits made by Mr. Doble resulting from his contravention of the Act, even where the claimant had not proven any loss resulting from the contravention.

The final orders of the court were that Mr. Doble was liable for breach of the equitable duty of confidence and statutory duties under the Corporations Act. The court awarded damages and ordered Mr. Doble to pay compensation to Chaffey Services Pty Ltd, reflecting the profits he made from his improper actions. This decision underscores the importance of maintaining the integrity of employment relationships and the obligations of employees to their employers.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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