Fortrend Securities Pty Ltd v Wollermann (No 2)

Fortrend Securities Pty Ltd brought an action against Messrs Wollermann, Lyle and LWAM, and Shaw, seeking damages for alleged breaches of equitable duty of confidence, fiduciary duties and statutory obligations. The dispute arose from the alleged misuse of confidential information and solicitation of clients from Fortrend by Messrs Lyle and Wollermann, who subsequently moved from Fortrend to Shaw, a new employer. The Federal Court was required to determine whether the respondents breached their employment contract or used confidential information to solicit former clients, and whether Shaw was liable as an accessory or for inducing a breach of contract. The court examined the evidence and submissions to ascertain whether Messrs Lyle and Wollermann had indeed used confidential information in breach of their duties and/or contract, and whether Shaw benefitted from such use. The court found that the applicants had failed to prove that Messrs Lyle and Wollermann had breached their duties or contract by using confidential information to solicit former clients, and dismissed the proceeding. The court also found that Shaw was not liable as an accessory or for inducing a breach of contract. The proceeding was dismissed, and the parties were directed to attempt to resolve the issue of costs.