Hunter Business Finance P/L v Australian Commercial and Equipment Finance P/L

Hunter Business Finance P/L brought a claim against Australian Commercial and Equipment Finance P/L regarding breaches of contract by three brokers who left the plaintiff's employment to set up a rival business. The dispute centred on the defendants' use of confidential client information in their new venture, which the plaintiff alleged constituted a breach of their contractual obligations. The matter was heard in the Supreme Court of New South Wales.

The court was tasked with determining the nature and extent of the loss suffered by the plaintiff due to the defendants' actions. A key issue was whether the loss of a chance of obtaining the clients' continuing business could be quantified and awarded as damages. The court also needed to assess whether the loss of confidential client information directly contributed to the plaintiff's loss.

In its decision, the court found that the loss of a chance of obtaining the clients' continuing business was not susceptible to exact calculation but could be assessed based on the impact of the defendants' actions. The court considered that the availability of confidential client information facilitated the defendants' dealings with those clients, leading to the loss of the plaintiff's opportunity to retain their business. The court awarded damages for this loss of chance in the amount of $10,000. The court emphasised that the assessment was based on the significant impact of the defendants' actions on the plaintiff's business prospects.

The court's final orders included an award of damages for the loss of chance of obtaining the clients' continuing business, amounting to $10,000. The court also noted that the award reflected the unique circumstances of the case, where the loss of confidential information played a critical role in the defendants' ability to attract the clients away from the plaintiff.